Chicago Atlantic BDC (NASDAQ:LIEN) Posts Earnings Results, Misses Estimates By $0.02 EPS

Chicago Atlantic BDC (NASDAQ:LIEN) announced its earnings results on Thursday. The company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.02), Zacks reports. Chicago Atlantic BDC had a return on equity of 11.66% and a net margin of 52.82%. The business had revenue of $15.44 million for the quarter, compared to analysts’ expectations of $15.42 million.

Here are the key takeaways from Chicago Atlantic BDC’s conference call:

• Net investment income rose to $0.36 per share from $0.34 in the prior quarter, covering the $0.34 dividend, which the company has maintained for nine consecutive quarters. Management reported no non-accrual loans; the debt portfolio is 100% senior secured and yields about 15.5%.
• The company funded a record $72 million in new investments during the quarter, bringing the portfolio to approximately $400 million; year-to-date originations also reached a record $167 million. Management said the pipeline is rebuilding, with demand for customized lending remaining healthy.
• Liquidity may limit near-term growth: as of November 11, the company had about $6.7 million available, and management said it was approaching its revolver’s capacity and that originations could slow in the fourth quarter. It is exploring additional funding and said it can use its $500 million shelf before the merger closes.
• The proposed all-stock merger with Chicago Atlantic Real Estate Finance remains under SEC review, and the company now expects the process to extend into 2027. A first-quarter 2027 closing is possible, but depends on regulatory review and a shareholder vote.

Chicago Atlantic BDC Stock Performance

LIEN stock traded up $0.03 during mid-day trading on Friday, reaching $9.08. The company had a trading volume of 16,873 shares, compared to its average volume of 67,957. The company has a market capitalization of $207.21 million, a price-to-earnings ratio of 6.53 and a beta of 0.31. The firm has a fifty day simple moving average of $9.54 and a 200 day simple moving average of $9.73. Chicago Atlantic BDC has a fifty-two week low of $8.92 and a fifty-two week high of $11.27.

Chicago Atlantic BDC Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be given a $0.34 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $1.36 dividend on an annualized basis and a yield of 15.0%. Chicago Atlantic BDC’s dividend payout ratio (DPR) is currently 97.84%.

Insider Transactions at Chicago Atlantic BDC

In other news, CIO Scott Gordon purchased 18,300 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was bought at an average price of $9.54 per share, for a total transaction of $174,582.00. Following the completion of the purchase, the executive directly owned 53,324 shares of the company’s stock, valued at $508,710.96. The trade was a 52.25% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder John Mazarakis purchased 60,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was purchased at an average price of $9.44 per share, with a total value of $566,400.00. Following the purchase, the insider directly owned 60,000 shares of the company’s stock, valued at $566,400. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 123,166 shares of company stock valued at $1,177,717. Corporate insiders own 12.90% of the company’s stock.

Recent Chicago Atlantic BDC Headlines

Investors following LIEN have been watching these headlines:

• Positive Sentiment: The board declared a quarterly cash dividend of $0.34 per share, payable January 15, 2027, to shareholders of record December 31. That equates to $1.36 annually and an indicated yield of about 15%. Dividend announcement
• Neutral Sentiment: Third-quarter revenue was $15.44 million, slightly above analysts’ $15.42 million estimate. Third-quarter results
• Negative Sentiment: EPS was $0.36, below the $0.38 consensus cited in reports and down from $0.42 a year earlier. The earnings shortfall and lower year-over-year profit may weigh on sentiment. Q3 earnings report

About Chicago Atlantic BDC

Chicago Atlantic BDC, Inc. is a business development company that provides financing to middle-market businesses. It is externally managed by an affiliate of Chicago Atlantic, an alternative investment manager focused on private credit. The company primarily invests in debt issued by U.S. cannabis businesses and companies that support the cannabis industry. Its financing can include secured loans and other credit investments tailored to borrowers’ business needs. Chicago Atlantic BDC operates in a sector where many businesses have limited access to traditional banking services.