Sound Point Meridian Capital (NYSE:SPMC) Trading Down 0.6% - Here's Why

Key Points

• Sound Point Meridian Capital, Inc. shares fell 0.6% to $17.88 amid lower trading volume, with approximately 8,003 shares changing hands compared to the average of 17,436 shares.
• Analysts have given the stock an average rating of "Buy" with a consensus price target of $20.00, following recent upgrades from Zacks Research and coverage initiation by Alliance Global Partners.
• The company announced a monthly dividend of $0.25 per share, with a yield of 16.8% and a high dividend payout ratio of 211.27%.

Sound Point Meridian Capital, Inc. (NYSE:SPMC - Get Free Report) shares dropped 0.6% during mid-day trading on Wednesday . The stock traded as low as $17.82 and last traded at $17.88. Approximately 8,003 shares were traded during trading, a decline of 54% from the average daily volume of 17,436 shares. The stock had previously closed at $17.99.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Alliance Global Partners assumed coverage on Sound Point Meridian Capital in a research note on Friday, July 18th. They issued a "buy" rating and a $20.00 price objective on the stock. Compass Point set a $20.00 price objective on Sound Point Meridian Capital in a research note on Tuesday, September 30th. Finally, Zacks Research upgraded Sound Point Meridian Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 26th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $20.00.

Sound Point Meridian Capital Trading Down 0.6%

The firm has a market capitalization of $361.71 million, a price-to-earnings ratio of 12.59 and a beta of 0.22. The firm has a fifty day moving average price of $17.86 and a 200 day moving average price of $18.21.

Sound Point Meridian Capital (NYSE:SPMC - Get Free Report) last announced its earnings results on Tuesday, August 12th. The company reported $0.53 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.03). The firm had revenue of $19.21 million during the quarter, compared to analyst estimates of $20.72 million.

Sound Point Meridian Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 14th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, November 14th. This represents a c) annualized dividend and a yield of 16.8%. Sound Point Meridian Capital's dividend payout ratio is currently 211.27%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Envestnet Asset Management Inc. lifted its holdings in Sound Point Meridian Capital by 8.6% during the 1st quarter. Envestnet Asset Management Inc. now owns 145,851 shares of the company's stock worth $2,908,000 after buying an additional 11,602 shares in the last quarter. Kim LLC acquired a new position in shares of Sound Point Meridian Capital in the 2nd quarter valued at $192,821,000. Marshall Wace LLP lifted its stake in shares of Sound Point Meridian Capital by 35.4% in the 2nd quarter. Marshall Wace LLP now owns 77,152 shares of the company's stock valued at $1,379,000 after purchasing an additional 20,163 shares during the period. Finally, Everest Management Corp. acquired a new position in shares of Sound Point Meridian Capital in the 2nd quarter valued at $1,303,000.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches.

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