Pearl Diver Credit stock initiated with Buy rating by Kingswood Capital

Investing.com - Kingswood Capital initiated coverage on Pearl Diver Credit (NYSE:PDCC) with a Buy rating and a $20.00 price target on Monday. The stock, currently trading at $18.08, offers a substantial dividend yield of 14.7%. According to InvestingPro, PDCC has several key indicators worth monitoring, with additional insights available to subscribers.

The investment firm cited Pearl Diver’s demonstrated expertise and discipline in managing credit origination and selection, which has led to below benchmark loss rates of approximately 0.7%.

Pearl Diver reported a decline in earnings per share to $0.90 in the first quarter of 2025, primarily due to mark-to-market movements, though this was partially offset by low loss rates and stable net investment income (NII) of $0.50 per share.

Kingswood Capital noted the positive carry on Pearl Diver’s portfolio Weighted Average Spread and the cost of capital, which helps maintain consistent distributions without impacting the net asset value.

The research firm expects Pearl Diver’s net investment income per share to remain stable at approximately $0.50 per quarter, keeping the yield in the 12-15% range.

In other recent news, Pearl Diver Credit Co Inc. has disclosed its unaudited net asset value (NAV) per share of common stock as of May 31, 2025, at $18.42. This announcement follows a previous report stating the NAV per share was $18.33 as of March 31, 2025. These figures provide investors with a snapshot of the company’s financial health and asset management performance at specific points in time. The NAV is calculated by subtracting liabilities from total assets and dividing the result by the number of outstanding shares. Pearl Diver Credit made these disclosures in compliance with the United States Securities and Exchange Commission (SEC) regulations, which mandate regular updates on significant financial information. The company, formerly known as Pearl Diver Credit Company, LLC, completed a name change on October 18, 2023. These announcements were made through 8-K filings, a standard procedure for publicly traded companies to inform shareholders of major events. The filings were signed by Indranil Basu, the Chief Executive Officer, affirming the accuracy of the information provided.

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