LIEN

Chicago Atlantic BDC ($LIEN) CEO Buys Shares During Dip, Drawing Attention to 12% Dividend Yield

04/08/2025 14:06

Chicago Atlantic BDC ($LIEN) CEO Peter Sack has caught investors' attention with a recent purchase of company shares. On April 4, 2025, Sack acquired 100 shares at $10.70 per share. While the total transaction amount of $1,070 may seem modest, it sends a noteworthy signal when the company's top decision-maker invests his own capital. This purchase coincides with $LIEN trading approximately 20% below its 52-week high of $13.38. The timing is particularly interesting as it follows a sharp decline from around $11.60 in late March 2025 to $10.70 in early April. The stock had previously climbed to around $12.50 in mid-October 2024 before retreating to its current level around $10.65. Chicago Atlantic BDC operates with a distinctive business model in specialty finance. The company focuses on investments in the cannabis ecosystem, primarily through direct loans and equity stakes in privately held cannabis companies. Founded in 2021 and headquartered in New York, the firm has carved out a niche in this specialized industry segment. Looking at recent financial performance, $LIEN reported adjusted earnings of 35 cents per share for the quarter ended December 31, 2024, exceeding analyst expectations of 29 cents. Even more impressive was the revenue surge of 245.2% year-over-year to $12.65 million. Net income for the quarter stood at $7.98 million. This growth trajectory is reflected in the annual figures as well, with trailing twelve-month (TTM) revenue reaching $21.67 million, up 81.56% from the previous year, and net income climbing 31.10% to $9.62 million. Currently, $LIEN has a market capitalization of approximately $261 million and earnings per share (EPS) of $0.93. One of $LIEN's most distinctive features is its high dividend yield. The company pays annual dividends of $1.36, translating to a yield of approximately 12.30% at current prices – a particularly attractive proposition for income-focused investors. The most recent quarterly dividend was $0.34, with the ex-dividend date on March 28, 2025. From a valuation perspective, the stock trades at a trailing price-to-earnings (P/E) ratio of 17.15 and a forward P/E of 10.12. The price-to-book (P/B) ratio of 0.86 indicates that the stock is trading below its book value, with book value per share at $13.28. However, investors should consider several risk factors associated with $LIEN's business model. The cannabis industry faces complex and rapidly evolving regulatory environments, which could impact the company's investment portfolio. Additionally, for the quarter ended September 30, 2024, earnings per share declined compared to the previous year, suggesting that the company's growth pattern may not be consistent. Nevertheless, CEO Peter Sack's recent stock purchase can be interpreted as a positive signal. Although modest in size, it communicates to the market that management values the company positively at current price levels. Combined with the high dividend yield, this might present an opportunity worth considering for long-term income investors. $LIEN is expected to announce its next earnings results around May 8, 2025. Investors should watch for the company's growth trajectory, changes in the regulatory environment for the cannabis industry, and dividend sustainability. The average analyst price target currently stands at $13.28, suggesting approximately 25% upside potential from current levels.

You can receive notifications when news is published.