CION beat earnings estimates but faces high payout ratio and a "Reduce" stock rating.

CION Investment (NYSE:CION) reported strong third-quarter earnings of $0.74 per share, well above estimates, and revenue of $78.71 million, surpassing expectations. The stock, trading at $9.47, saw a 29.2% drop in short interest to 270,218 shares by December 31, with a short-interest ratio of 0.6 days. Despite a 12.7% annual dividend yield, the payout ratio of 235.29% exceeds earnings. The company has a consensus “Reduce” rating and an average price target of $8.50. CION, a closed-end business development company, focuses on senior secured loans, subordinated debt, and private equity in middle-market U.S. and Canadian firms.