Sound Point Meridian Capital (NYSE:SPMC) Announces Earnings Results

Sound Point Meridian Capital (NYSE:SPMC) announced its quarterly earnings data on Wednesday. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.06), Zacks reports. The company had revenue of $12.42 million during the quarter, compared to the consensus estimate of $14.18 million.

Here are the key takeaways from Sound Point Meridian Capital’s conference call:

• Net investment income was below distributions at $0.24 per share versus $0.60 paid, driven by spread tightening and higher modeled loss reserves for AI-impacted software loans.
• The company cut its planned monthly distribution to $0.13 per share for Q4 2026 from $0.20 in Q3, reflecting income compression and a desire to preserve balance-sheet flexibility.
• NAV per share rose to $9.88 from $9.63, supported by unrealized appreciation in CLO equity investments; portfolio GAAP yield also improved to 9.8% from 9.1%, with management citing approximately 10.1% in July.
• Management is rotating from lower-yielding or higher-risk CLO equity into secondary-market positions, which it says can offer mid- to high-teens yields; year-to-date trading has added roughly 100 basis points of portfolio yield.
• AI-related software exposure represents roughly 10%–12% of the look-through portfolio, and the company is reducing exposure to the most vulnerable individual credits while favoring defensive sectors and monitoring broader credit-market volatility.

Sound Point Meridian Capital Price Performance

NYSE SPMC opened at $10.19 on Friday. Sound Point Meridian Capital has a 1 year low of $8.36 and a 1 year high of $18.54. The company has a market capitalization of $208.87 million, a PE ratio of -1.76 and a beta of 1.15. The company has a fifty day moving average of $10.36 and a 200 day moving average of $10.54.

Sound Point Meridian Capital Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be given a dividend of $0.13 per share. The ex-dividend date is Tuesday, December 15th. This represents a c) dividend on an annualized basis and a yield of 15.3%. Sound Point Meridian Capital’s payout ratio is currently -39.09%.

Analyst Ratings Changes

Several research firms have issued reports on SPMC. Alliance Global Partners reiterated a “buy” rating on shares of Sound Point Meridian Capital in a research note on Wednesday, May 27th. Zacks Research upgraded shares of Sound Point Meridian Capital from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 28th. Finally, B. Riley Financial cut their price objective on shares of Sound Point Meridian Capital from $10.50 to $10.00 and set a “neutral” rating on the stock in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Sound Point Meridian Capital presently has a consensus rating of “Hold” and a consensus target price of $15.12.

Institutional Trading of Sound Point Meridian Capital

A number of hedge funds have recently added to or reduced their stakes in SPMC. Virtus Investment Advisers LLC increased its stake in shares of Sound Point Meridian Capital by 7.5% in the 4th quarter. Virtus Investment Advisers LLC now owns 29,620 shares of the company’s stock valued at $407,000 after purchasing an additional 2,061 shares in the last quarter. Kim LLC purchased a new stake in Sound Point Meridian Capital in the 2nd quarter valued at $192,821,000. Marshall Wace LLP increased its position in Sound Point Meridian Capital by 35.4% during the second quarter. Marshall Wace LLP now owns 77,152 shares of the company’s stock worth $1,379,000 after purchasing an additional 20,163 shares during the last quarter. Citadel Advisors LLC acquired a new position in Sound Point Meridian Capital in the third quarter valued at approximately $267,000. Finally, Thomas J. Herzfeld Advisors Inc. purchased a new position in Sound Point Meridian Capital during the fourth quarter worth about $189,000.

Sound Point Meridian Capital Company Profile

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. Sound Point Meridian Capital Inc is based in NEW YORK.