Matthew Forstenhausler Purchases 2,400 Shares of Sound Point Meridian Capital (NYSE:SPMC) Stock

Sound Point Meridian Capital, Inc. (NYSE:SPMC) Director Matthew Forstenhausler purchased 2,400 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was bought at an average cost of $9.29 per share, with a total value of $22,296.00. Following the completion of the purchase, the director owned 12,496 shares of the company’s stock, valued at $116,087.84. This represents a 23.77% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website.

Sound Point Meridian Capital Stock Performance

Sound Point Meridian Capital stock opened at $9.55 on Friday. Sound Point Meridian Capital, Inc. has a fifty-two week low of $8.36 and a fifty-two week high of $18.54. The stock’s 50 day simple moving average is $9.99 and its two-hundred day simple moving average is $10.21. The stock has a market cap of $195.78 million, a price-to-earnings ratio of -1.65 and a beta of 1.15.

Sound Point Meridian Capital (NYSE:SPMC) last announced its earnings results on Wednesday, August 12th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.06). The firm had revenue of $12.42 million during the quarter, compared to analysts’ expectations of $14.18 million. On average, analysts predict that Sound Point Meridian Capital, Inc. will post 1.04 earnings per share for the current year.

Sound Point Meridian Capital Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be paid a $0.13 dividend. This represents a c) annualized dividend and a yield of 16.3%. The ex-dividend date of this dividend is Tuesday, December 15th. Sound Point Meridian Capital’s dividend payout ratio is presently -41.52%.

Key Headlines Impacting Sound Point Meridian Capital

Here are the key news stories impacting Sound Point Meridian Capital this week:

• Positive Sentiment: Director Matthew Forstenhausler purchased 2,400 shares for approximately $22,296 at an average price of $9.29, increasing his reported position by 23.77%. He also purchased 1,600 shares on August 26, while the combined purchases exceeded a separate sale of 2,427 shares. Insider buying can signal management confidence in the stock’s valuation. Sound Point Meridian Capital Director Purchases 2,400 Shares
• Positive Sentiment: Sound Point Meridian Capital declared a monthly dividend of $0.13 per share, implying approximately $1.56 annually and a dividend yield near 16.3% based on the cited share price. The sizable income component may support investor interest, although the reported payout ratio is negative because of the company’s earnings profile. Sound Point Meridian Capital Dividend and Market Update
• Neutral Sentiment: Institutional ownership activity was mixed: Marshall Wace increased its stake by 35.4%, Virtus Investment Advisers added 7.5%, and several other firms initiated positions. Analysts maintain a consensus “Hold” rating, with an average price target of $15.12, though the small analyst sample limits its significance.
• Negative Sentiment: Zacks Research downgraded SPMC from “Hold” to “Strong Sell.” B. Riley also reduced its price target from $10.50 to $10.00 and kept a “Neutral” rating, adding pressure to the investment case. Zacks Research
• Negative Sentiment: The company’s latest quarterly results missed expectations: earnings per share were $0.24 versus a $0.30 consensus estimate, while revenue of $12.42 million fell short of the $14.18 million forecast. The earnings miss raises concerns about income generation and dividend sustainability.

Institutional Trading of Sound Point Meridian Capital

Institutional investors have recently bought and sold shares of the company. Thomas J. Herzfeld Advisors Inc. bought a new position in shares of Sound Point Meridian Capital in the fourth quarter worth approximately $189,000. Citadel Advisors LLC purchased a new position in Sound Point Meridian Capital in the 3rd quarter worth approximately $267,000. Advisory Solutions Group LLC purchased a new position in Sound Point Meridian Capital in the 2nd quarter worth approximately $316,000. Virtus Investment Advisers LLC lifted its position in 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 acquiring an additional 2,061 shares in the last quarter. Finally, Allied Private Wealth LLC bought a new position in Sound Point Meridian Capital in the 2nd quarter valued at approximately $984,000.

Analyst Ratings Changes

SPMC has been the topic of a number of research reports. Zacks Research cut shares of Sound Point Meridian Capital from a “hold” rating to a “strong sell” rating in a report on Wednesday. Alliance Global Partners reissued a “buy” rating on shares of Sound Point Meridian Capital in a research report on Wednesday, May 27th. Finally, B. Riley Financial dropped 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 note on Wednesday, August 12th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Sound Point Meridian Capital presently has a consensus rating of “Hold” and an average target price of $15.12.

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.