In a recent transition within Sound Point Meridian Capital, Inc., Ivana Kovačić has stepped down from her role as Chief Compliance Officer (CCO) and Lucas D. Foss has been appointed as her successor. The change took effect today, as announced in a filing with the Securities and Exchange Commission.
Ms. Kovačić's resignation from her position at the New York-based closed-end management investment company, which is registered under the Investment Company Act of 1940, coincides with her departure from ALPS Fund Services, Inc. to pursue other opportunities. Her successor, Mr. Foss, will hold the CCO position until a new appointment is made or upon his own resignation or removal.
Lucas D. Foss, 46, has been with SS&C ALPS since November 2017 and serves as Director, Fund Compliance and Governance, at SS&C Registered Fund Services. With over two decades of experience in the fund services industry, Mr. Foss brings substantial expertise to his new role at Sound Point Meridian Capital. He is currently the President of two series trusts and leads the Fund CCO Services group. Mr. Foss holds a B.A. in Economics from the University of Vermont and has earned the Certified Securities Compliance Professional (CSCP) designation.
The company, Sound Point Meridian Capital, Inc., trades on the New York Stock Exchange under the ticker symbol SPMC and is headquartered on Park Avenue in New York City. The firm's business operations continue uninterrupted following this executive shift.
In other recent news, Sound Point Meridian Capital received an Outperform rating from Oppenheimer, emphasizing the firm's positive outlook on the investment management company's earnings potential. Oppenheimer's projections indicate earnings per share (EPS) of $1.11 for 2024, $2.52 for 2025, and $2.54 for 2026, corresponding to return on equities (ROEs) of 11.2%, 12.8%, and 13.1% for each year, respectively. The analysis suggests that Sound Point Meridian Capital can achieve a 12.4% ROE.
The estimated fair value of the company's shares is $20.65, slightly above its current trading price, leading to Oppenheimer's price target of $21.00. This valuation is based on the company's strategy of paying out what it earns until a formal dividend policy is established.
InvestingPro Insights
As Sound Point Meridian Capital, Inc. (SPMC) navigates through its executive transition, investors and stakeholders may find the following InvestingPro data and tips useful for understanding the company's current market standing. With a market capitalization of $391.39 million, SPMC is a notable player within the investment management sector. The company's dedication to shareholder returns is evident with a robust dividend yield of 12.28%, as of the last dividend ex-date on July 15, 2024. Despite a slight downturn in recent price performance, with a 1-week total return of -0.77%, the stock's price stability is reflected in its low volatility and its trading near its 52-week high at 99.02% of the peak value.
Investors considering SPMC should be aware of two crucial InvestingPro Tips: Firstly, the stock is currently in an overbought territory according to the Relative Strength Index (RSI), which may suggest caution. Secondly, while the company pays a significant dividend to its shareholders, it also suffers from weak gross profit margins, which could be a concern for long-term profitability and cash flow. For those interested in a deeper analysis, InvestingPro offers additional tips to help with investment decisions. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription and unlock all available tips for SPMC at https://www.investing.com/pro/SPMC.
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