CION - CION Investment: Q4 The Market May Have This One Wrong (Rating Upgrade)
2024-04-16 16:00:00 ET
Summary
- CION Investment Corporation is a BDC that trades at a 32% discount to its NAV price of $16.23. Their dividend is well-covered and management announced a mid-year supplemental dividend.
- CION has shown resilience in its portfolio credit quality and has managed to decrease non-accruals quarter-over-quarter, something that has plagued larger peers.
- The company's management team has been actively repurchasing shares at the discounted price, which is expected to be accretive to net investment income and NAV growth going forward.
- Despite the decline in Nll & Tll quarter-over-quarter, CION managed to grow both year-over-year.
- In my opinion the market may be skeptical about CION due to their short track record and preference to generate higher shareholder returns from PIK income.