Palmer Square Capital BDC (NYSE:PSBD) Releases Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Palmer Square Capital BDC (NYSE:PSBD) released its quarterly earnings results on Wednesday. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 Stock Performance

Shares of NYSE PSBD traded up $0.07 during mid-day trading on Wednesday, hitting $9.98. The stock had a trading volume of 93,494 shares, compared to its average volume of 112,999. The firm has a market cap of $310.48 million, a PE ratio of -9.59 and a beta of 0.84. The company has a 50 day moving average of $10.37 and a two-hundred day moving average of $10.72. Palmer Square Capital BDC has a twelve month low of $9.34 and a twelve month high of $14.43.

Palmer Square Capital BDC Dividend Announcement

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

Wall Street Analysts Forecast Growth

PSBD has been the topic of a number of research analyst reports. UBS Group lowered their price target on Palmer Square Capital BDC from $11.50 to $11.00 and set a “neutral” rating on the stock in a report on Monday, April 20th. Noble Financial initiated coverage on shares of Palmer Square Capital BDC in a report on Wednesday, June 24th. They issued a “neutral” rating on the stock. Wall Street Zen downgraded Palmer Square Capital BDC from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. JPMorgan Chase & Co. decreased their price objective on Palmer Square Capital BDC from $10.00 to $9.50 and set a “neutral” rating on the stock in a research report on Thursday, July 2nd. Finally, Wells Fargo & Company set a $11.50 target price on Palmer Square Capital BDC in a report on Wednesday, June 24th. Four research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus 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 40,000 shares of the stock in a transaction on Monday, July 6th. The shares were bought at an average cost of $10.56 per share, with a total value of $422,400.00. Following the completion of the acquisition, the insider owned 351,988 shares in the company, valued at $3,716,993.28. This trade represents a 12.82% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Over the last ninety days, insiders have purchased 108,472 shares of company stock worth $1,155,558. Company insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Palmer Square Capital BDC

Large investors have recently bought and sold shares of the business. Jane Street Group LLC acquired a new position in Palmer Square Capital BDC during the first quarter worth $360,000. Bank of America Corp DE increased 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 in the last quarter. Two Sigma Investments LP raised its holdings in shares of Palmer Square Capital BDC by 142.9% during the third quarter. Two Sigma Investments LP now owns 131,545 shares of the company’s stock valued at $1,614,000 after acquiring an additional 77,393 shares during the last quarter. Citadel Advisors LLC purchased a new position in shares of Palmer Square Capital BDC in the third quarter valued at approximately $230,000. Finally, Millennium Management LLC lifted its position in shares of Palmer Square Capital BDC by 2.0% in the third quarter. Millennium Management LLC now owns 134,249 shares of the company’s stock valued at $1,647,000 after acquiring an additional 2,638 shares in the last quarter. 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.