Chicago Atlantic BDC (NASDAQ:LIEN) Announces Earnings Results

Chicago Atlantic BDC (NASDAQ:LIEN) posted its earnings results on Thursday. The company reported $0.36 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.36, FiscalAI reports. The firm had revenue of $14.23 million during the quarter, compared to analyst estimates of $13.41 million. Chicago Atlantic BDC had a net margin of 33.72% and a return on equity of 5.80%.

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

• Reported Q4 net investment income of $0.36 per share and full-year NII of $1.45 per share, declared a $0.34 quarterly dividend (sixth consecutive quarter) and NAV edged up to $13.30.
• Emphasized a defensive, high?return portfolio with 99.5% senior secured positions, a ~15.8% weighted average yield on debt, 73% of debt fixed-or-floored against rate declines, no non?accruals, and very low leverage (0.08x debt-to-equity).
• Active deployment and a large opportunity set — funded $31.7M in Q4 and $93.9M in Q1-to-date (?$40M net originations after payoffs), with a platform pipeline of ~$732M (?$616M cannabis) and about $47.5M of available liquidity.
• Company stock is being pressured by broader negative sentiment in the BDC/private credit market—investors focused less on book value and more on potential dividend cuts, loan losses, and impacts from lower Fed funds rates despite the firm’s differentiators.

Chicago Atlantic BDC Stock Up 0.8%

Chicago Atlantic BDC stock traded up $0.08 during midday trading on Thursday, hitting $9.98. 13,125 shares of the stock were exchanged, compared to its average volume of 69,131. Chicago Atlantic BDC has a 52-week low of $9.58 and a 52-week high of $12.14. The business’s 50-day moving average price is $10.25 and its 200-day moving average price is $10.46. The stock has a market capitalization of $227.63 million, a price-to-earnings ratio of 12.63 and a beta of 0.27.

Hedge Funds Weigh In On Chicago Atlantic BDC

Hedge funds and other institutional investors have recently modified their holdings of the business. Triumph Capital Management purchased a new stake in shares of Chicago Atlantic BDC during the fourth quarter valued at approximately $32,000. Northwestern Mutual Wealth Management Co. bought a new position in Chicago Atlantic BDC in the 4th quarter valued at $63,000. Westwood Holdings Group Inc. bought a new position in Chicago Atlantic BDC in the 2nd quarter valued at $111,000. XTX Topco Ltd purchased a new stake in shares of Chicago Atlantic BDC during the 2nd quarter valued at $112,000. Finally, Millennium Management LLC raised its stake in shares of Chicago Atlantic BDC by 172.3% during the 3rd quarter. Millennium Management LLC now owns 48,547 shares of the company’s stock worth $510,000 after purchasing an additional 30,718 shares during the period. Hedge funds and other institutional investors own 4.36% of the company’s stock.

About Chicago Atlantic BDC

Chicago Atlantic BDC (NASDAQ:LIEN) is a closed-end management investment company organized as a business development company (BDC). It focuses on providing debt and equity financing solutions to U.S. middle-market companies that demonstrate strong growth potential. Through its public listing, the company offers investors exposure to a diversified portfolio of private credit and equity investments aimed at delivering attractive risk-adjusted returns.

The company’s investment strategy centers on structuring customized credit facilities, including senior secured loans, unitranche loans, mezzanine debt and equity co-investments.