Palmer Square Posts $0.38 Share Income, Buys Back Stock
The business development company reported third-quarter results and repurchased $5.2 million of its common stock while shares traded below net asset value.
Updated on Nov. 5, 2026 in Corporate Finance
Palmer Square Capital reported net investment income of $0.38 per share for the third quarter of 2026 on its earnings call held November 4, 2026. The company also bought back $5.2 million of common stock during the quarter under an expanded repurchase program.
Why it matters
Shares trading at a discount to net asset value made buybacks a way to return capital, and management said it is directing capital toward private credit and secondary market purchases where risk-adjusted returns remain higher. The moves reflect how business development companies are balancing repurchases against new lending opportunities.
The company reported $0.38 per share in third-quarter net investment income and repurchased $5.2 million of common stock, with leverage reduced to 1.63 times equity and nonaccruals below 1% of portfolio cost. The extraction does not provide the prior-period comparison or the exact size of the discount to net asset value at which shares traded.
The players
Palmer Square Capital
Palmer Square Capital is a business development company that makes private credit and collateralized loan investments.
The details
Palmer Square Capital reset its collateralized loan obligation to lower its borrowing spread over the Secured Overnight Financing Rate and reduced unused line capacity on its credit facility to trim fee expenses. Management said the share repurchases were made under an expanded program announced the prior quarter.
Timeline
Q3 2026: The company bought back $5.2 million of common stock and reported net investment income of $0.38 per share.
November 4, 2026: Palmer Square Capital held its third-quarter 2026 earnings call.
Market Dynamics
Business development companies that trade below net asset value have increasingly used repurchase programs to return capital to shareholders rather than deploy it into new loans. Palmer Square's $5.2 million buyback fits that pattern while the firm redirects its capital toward private credit and secondary market purchases.
Shareholders of business development companies trading below net asset value may see buybacks reduce outstanding shares and support per-share value. Investors evaluating the stock can compare the company's quarterly net investment income and leverage levels against its peers.
The takeaway
Buybacks at a discount to net asset value can be a way for a BDC to return capital, but investors should watch whether the company's quarterly income and leverage hold steady as it shifts toward new loan purchases.
Further reading
For related coverage of company capital moves, see Corporate Finance in the United States.
Source note: This article includes information reported by The Motley Fool.
