Palmer Square Capital BDC (NYSE:PSBD) Issues Quarterly Earnings Results

Palmer Square Capital BDC (NYSE:PSBD) issued its quarterly earnings results on Wednesday. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.04), Zacks reports. Palmer Square Capital BDC had a negative net margin of 26.82% and a positive return on equity of 11.01%.

Here are the key takeaways from Palmer Square Capital BDC’s conference call:

• Palmer Square Capital BDC generated $0.39 per share of net investment income in the second quarter, matching its $0.39 per-share dividend, including a $0.03 supplemental payment. The board declared a third-quarter base dividend of $0.36 per share.
• Net investment income declined to $12.0 million from $13.8 million a year earlier, primarily reflecting lower base rates, while NAV per share fell to $13.21 from $13.30 amid valuation declines in broadly syndicated loans.
• Management reported resilient credit performance, including a low 0.29% non-accrual rate, a portfolio that is 96% senior secured, diversified across 45 industries, and PIK income equal to only 1.37% of total investment income.
• The company expanded its share repurchase authorization to $30 million, with approximately $4 million used through the second quarter, and expects to deploy the program meaningfully while maintaining appropriate leverage.
• PSBD reset and extended its BDC CLO, reducing the weighted-average debt cost to SOFR plus 1.39% from 1.72% and extending the reinvestment period to 2031; management expects the transaction to be fully accretive beginning in the fourth quarter. Investment activity remains subdued, but discounted liquid-loan and wider-spread private-credit opportunities are emerging.

Palmer Square Capital BDC Trading Up 1.2%

NYSE:PSBD traded up $0.12 during trading hours on Wednesday, hitting $10.03. The company’s stock had a trading volume of 77,974 shares, compared to its average volume of 112,933. The stock has a market capitalization of $312.01 million, a P/E ratio of -9.64 and a beta of 0.84. The stock has a fifty day moving average of $10.37 and a 200-day moving average of $10.72. Palmer Square Capital BDC has a 52-week low of $9.34 and a 52-week high of $14.43.

Palmer Square Capital BDC Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, July 13th. Investors of record on Friday, June 26th were paid a dividend of $0.36 per share. The ex-dividend date was Friday, June 26th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 14.4%. Palmer Square Capital BDC’s payout ratio is presently -138.46%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on PSBD shares. Zacks Research cut Palmer Square Capital BDC from a “hold” rating to a “strong sell” rating in a research note on Friday, May 22nd. Wells Fargo & Company set a $11.50 price target on Palmer Square Capital BDC in a report on Wednesday, June 24th. Noble Financial started coverage on Palmer Square Capital BDC in a research report on Wednesday, June 24th. They issued a “neutral” rating on the stock. UBS Group decreased their price objective on Palmer Square Capital BDC from $11.50 to $11.00 and set a “neutral” rating for the company in a research note on Monday, April 20th. Finally, Royal Bank Of Canada lowered their price objective on Palmer Square Capital BDC from $12.00 to $11.00 and set a “sector perform” rating for the company in a research report on Wednesday, May 27th. Four investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and an average target price of $10.75.

Insider Transactions at Palmer Square Capital BDC

In other Palmer Square Capital BDC news, major shareholder Martin C. Bicknell purchased 21,484 shares of the stock in a transaction that occurred on Tuesday, July 7th. The stock was purchased at an average cost of $10.47 per share, with a total value of $224,937.48. Following the completion of the acquisition, the insider directly owned 373,472 shares of the company’s stock, valued at $3,910,251.84. This trade represents a 6.10% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last ninety days, insiders bought 108,472 shares of company stock worth $1,155,558. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Palmer Square Capital BDC

Several large investors have recently bought and sold shares of PSBD. Millennium Management LLC grew its holdings in shares of Palmer Square Capital BDC by 2.0% during the third quarter. Millennium Management LLC now owns 134,249 shares of the company’s stock worth $1,647,000 after purchasing an additional 2,638 shares during the last quarter. Trexquant Investment LP boosted its position in shares of Palmer Square Capital BDC by 17.6% in the 4th quarter. Trexquant Investment LP now owns 50,118 shares of the company’s stock valued at $611,000 after purchasing an additional 7,496 shares during the period. Bank of America Corp DE grew its stake in Palmer Square Capital BDC by 5.0% during the 2nd quarter. Bank of America Corp DE now owns 300,575 shares of the company’s stock worth $4,196,000 after buying an additional 14,220 shares during the last quarter. Citadel Advisors LLC purchased a new position in Palmer Square Capital BDC during the 3rd quarter worth approximately $230,000. Finally, Jane Street Group LLC increased its position in Palmer Square Capital BDC by 187.3% during the fourth quarter. Jane Street Group LLC now owns 39,531 shares of the company’s stock worth $482,000 after buying an additional 25,771 shares during the period. Institutional investors and hedge funds own 6.52% of the company’s stock.

About Palmer Square Capital BDC

Palmer Square Capital BDC Inc (NYSE: PSBD) is a closed-end, externally managed business development company that provides customized financing solutions to middle-market companies in the United States. The firm offers a broad range of debt and equity products—including first-lien and second-lien senior secured loans, unitranche financings, mezzanine debt and equity co-investments—to support corporate acquisitions, refinancings, growth initiatives and balance sheet restructurings.

PSBD primarily targets established privately owned and sponsored businesses across diverse industries such as healthcare, business services, industrials and consumer products.