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 $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.06, FiscalAI reports. Palmer Square Capital BDC had a negative net margin of 26.73% and a positive return on equity of 11.22%. The firm had revenue of $26.57 million for the quarter, compared to analyst estimates of $26.69 million.

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

• Third-quarter net investment income fell to $0.38 per share from $0.43 a year earlier. The board set the fourth-quarter base dividend at $0.36 per share, with any supplemental distribution still to be determined.
• NAV per share rose $0.13 sequentially to $13.34, while debt-to-equity declined to 1.63x from 1.71x. The company also reported $2.4 million in net realized and unrealized gains, versus losses a year ago.
• Management described portfolio credit quality as resilient: 97% of investments were senior secured, non-accruals were 0.96% of cost, and PIK income was 2.18% of total investment income. First-lien borrowers had 2.38x interest coverage on average.
• PSBD repurchased $5.2 million of shares during the quarter and had $24.8 million of capacity remaining under its buyback plan, which management said remains a near-term priority. The company also refinanced and extended its CLO, reducing its spread to SOFR plus 139 basis points from 172.
• Management expects rate volatility and uncertainty to keep deal activity muted in the near term, while noting that tighter spreads make private credit and secondary-market loans more attractive than new syndicated issuance. It said portfolio deployment will remain selective and buybacks or debt paydown may take priority when opportunities are less compelling.

Palmer Square Capital BDC Price Performance

PSBD stock traded down $0.12 during trading hours on Thursday, reaching $9.87. The stock had a trading volume of 151,134 shares, compared to its average volume of 113,876. The stock has a market capitalization of $302.56 million, a PE ratio of -9.97 and a beta of 0.85. The stock has a 50-day simple moving average of $10.00 and a 200 day simple moving average of $10.50. Palmer Square Capital BDC has a fifty-two week low of $9.34 and a fifty-two week high of $12.61.

Palmer Square Capital BDC Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 13th. Shareholders of record on Monday, December 28th will be paid a $0.36 dividend. The ex-dividend date is Monday, December 28th. This represents a $1.44 dividend on an annualized basis and a yield of 14.6%. Palmer Square Capital BDC’s dividend payout ratio (DPR) is currently -145.45%.

Analyst Upgrades and Downgrades

PSBD has been the subject of several analyst reports. Zacks Research upgraded Palmer Square Capital BDC from a “strong sell” rating to a “hold” rating in a report on Monday, August 10th. UBS Group dropped their target price on Palmer Square Capital BDC from $11.00 to $10.00 and set a “neutral” rating on the stock in a report on Tuesday, September 1st. Finally, Wall Street Zen raised Palmer Square Capital BDC from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Five equities research analysts have rated the stock with a Hold rating. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $10.50.

Key Palmer Square Capital BDC News

Here are the key news stories impacting Palmer Square Capital BDC this week:

• Positive Sentiment: PSBD declared a quarterly dividend of $0.36 per share, payable January 13, 2027, to shareholders of record December 28. That equates to $1.44 annualized and a stated 14.4% yield. Dividend announcement
• Positive Sentiment: The company repurchased $5.2 million of common stock and made $115 million in new portfolio commitments—evidence of capital returned to shareholders alongside continued investment. Long-term investor takeaways
• Neutral Sentiment: Quarterly earnings figures vary across reports: one cites EPS of $0.46, above a $0.40 estimate, while Zacks reports $0.38, in line with consensus and below $0.43 a year earlier. Revenue was $26.57 million, slightly under the $26.69 million estimate. Zacks earnings report
• Negative Sentiment: The revenue miss and the reported year-over-year decline in EPS could weigh on sentiment, tempering the support from the dividend and buybacks.

About Palmer Square Capital BDC

Palmer Square Capital BDC, Inc is an externally managed business development company that seeks to provide financing to private middle-market companies. The company focuses primarily on privately originated and negotiated investments in senior secured loans and other debt instruments, with the goal of supporting businesses while generating current income for shareholders.

Palmer Square Capital BDC may invest across a range of industries and capital structures, including first-lien and unitranche loans, second-lien and subordinated debt, and select equity investments.