Sound Point Meridian Capital (NYSE:SPMC) Issues Quarterly Earnings Results

Sound Point Meridian Capital (NYSE:SPMC) posted its quarterly 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

SPMC stock traded down $0.90 on Wednesday, reaching $9.87. 95,547 shares of the company traded hands, compared to its average volume of 33,154. Sound Point Meridian Capital has a one year low of $8.36 and a one year high of $18.54. The company has a market cap of $202.31 million, a P/E ratio of -1.61 and a beta of 1.15. The firm has a fifty day simple moving average of $10.42 and a 200-day simple moving average of $10.60.

Sound Point Meridian Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a $0.20 dividend. 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 presently -39.09%.

Institutional Investors Weigh In On Sound Point Meridian Capital

Several hedge funds have recently added to or reduced their stakes in SPMC. Kim LLC bought a new position in shares of Sound Point Meridian Capital during the second quarter valued at $192,821,000. Marshall Wace LLP boosted its stake in Sound Point Meridian Capital by 35.4% in the 2nd 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 in the last quarter. Virtus Investment Advisers LLC lifted its holdings in shares of Sound Point Meridian Capital by 7.5% during 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. Citadel Advisors LLC purchased a new position in shares of Sound Point Meridian Capital during the third quarter valued at approximately $267,000. Finally, Thomas J. Herzfeld Advisors Inc. bought a new position in Sound Point Meridian Capital during the fourth quarter valued at approximately $189,000.

Analyst Upgrades and Downgrades

SPMC has been the topic of a number of recent analyst reports. Zacks Research upgraded Sound Point Meridian Capital from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 28th. Alliance Global Partners restated a “buy” rating on shares of Sound Point Meridian Capital in a report on Wednesday, May 27th. Finally, B. Riley Financial reaffirmed a “neutral” rating on shares of Sound Point Meridian Capital in a research note on Wednesday. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $15.12.

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.