Sound Point Meridian Capital (NYSE:SPMC) Releases Earnings Results, Misses Estimates By $0.06 EPS

Sound Point Meridian Capital (NYSE:SPMC) announced its earnings results on Wednesday. The company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.30 by ($0.06), Zacks reports.

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

Shares of SPMC traded down $0.90 during trading hours on Wednesday, hitting $9.87. 96,762 shares of the stock were exchanged, compared to its average volume of 33,154. Sound Point Meridian Capital has a fifty-two week low of $8.36 and a fifty-two week high of $18.54. The business has a 50-day moving average of $10.42 and a 200-day moving average of $10.60. The firm has a market capitalization of $202.31 million, a P/E ratio of -1.61 and a beta of 1.15.

Sound Point Meridian Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.20 per share. The ex-dividend date is Tuesday, September 15th. This represents a c) annualized dividend and a dividend yield of 24.3%. Sound Point Meridian Capital’s dividend payout ratio is -39.09%.

Analysts Set New Price Targets

Several equities analysts have recently commented on SPMC shares. Zacks Research upgraded shares of Sound Point Meridian Capital from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 28th. B. Riley Financial restated a “neutral” rating on shares of Sound Point Meridian Capital in a research report on Wednesday. Finally, Alliance Global Partners reiterated a “buy” rating on shares of Sound Point Meridian Capital in a report on Wednesday, May 27th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $15.12.

Institutional Investors Weigh In On Sound Point Meridian Capital

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

About Sound Point Meridian Capital

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.