Short Interest in Carlyle Secured Lending, Inc. (NASDAQ:CGBD) Decreases By 25.0%

Key Points

• Carlyle Secured Lending, Inc. experienced a significant drop in short interest of 25.0% in August, with total short interest decreasing to 435,400 shares from 580,900 shares in July.
• CFO Thomas M. Hennigan increased his stake in the company by purchasing 7,285 shares at an average cost of $13.75 per share, while Director John G. Nestor sold 13,238 shares at an average price of $13.49, marking a significant decrease in his ownership.
• The company declared a quarterly dividend of $0.40 per share, with an annual yield of 11.6%, despite having a dividend payout ratio of 133.33%.

Carlyle Secured Lending, Inc. (NASDAQ:CGBD - Get Free Report) was the recipient of a large drop in short interest in August. As of August 15th, there was short interest totaling 435,400 shares, a drop of 25.0% from the July 31st total of 580,900 shares. Based on an average daily volume of 435,000 shares, the days-to-cover ratio is currently 1.0 days. Based on an average daily volume of 435,000 shares, the days-to-cover ratio is currently 1.0 days.

Carlyle Secured Lending Stock Performance

CGBD traded down $0.04 on Friday, hitting $13.70. The company had a trading volume of 441,055 shares, compared to its average volume of 342,539. The company's fifty day moving average price is $13.86 and its 200 day moving average price is $14.55. Carlyle Secured Lending has a 1-year low of $13.12 and a 1-year high of $18.64. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.73 and a quick ratio of 0.73. The stock has a market cap of $698.11 million, a price-to-earnings ratio of 11.42 and a beta of 0.88.

Carlyle Secured Lending (NASDAQ:CGBD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.39 EPS for the quarter, hitting analysts' consensus estimates of $0.39. Carlyle Secured Lending had a return on equity of 9.85% and a net margin of 29.71%.The company had revenue of $67.28 million during the quarter, compared to analyst estimates of $67.53 million. Equities analysts predict that Carlyle Secured Lending will post 1.97 earnings per share for the current fiscal year.

Carlyle Secured Lending Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 17th. Stockholders of record on Tuesday, September 30th will be given a dividend of $0.40 per share. The ex-dividend date is Tuesday, September 30th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 11.7%. Carlyle Secured Lending's payout ratio is currently 133.33%.

Wall Street Analyst Weigh In

Several research firms have weighed in on CGBD. Raymond James Financial began coverage on Carlyle Secured Lending in a research note on Thursday, July 17th. They set a "market perform" rating on the stock. Wells Fargo & Company raised Carlyle Secured Lending from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $13.00 to $15.00 in a research note on Friday, July 25th. Finally, B. Riley reaffirmed a "neutral" rating and set a $14.50 target price (up previously from $14.00) on shares of Carlyle Secured Lending in a research note on Monday, August 11th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $15.10.

Insider Transactions at Carlyle Secured Lending

In related news, CFO Thomas M. Hennigan purchased 7,285 shares of the company's stock in a transaction that occurred on Wednesday, August 20th. The shares were purchased at an average price of $13.75 per share, with a total value of $100,168.75. Following the purchase, the chief financial officer owned 88,495 shares of the company's stock, valued at $1,216,806.25. This trade represents a 8.97% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director John G. Nestor sold 13,238 shares of Carlyle Secured Lending stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $13.49, for a total value of $178,580.62. Following the transaction, the director directly owned 14,593 shares in the company, valued at approximately $196,859.57. This trade represents a 47.57% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.61% of the company's stock.

Institutional Trading of Carlyle Secured Lending

Institutional investors and hedge funds have recently modified their holdings of the company. Quarry LP bought a new stake in shares of Carlyle Secured Lending during the first quarter valued at approximately $32,000. Northwestern Mutual Wealth Management Co. increased its position in shares of Carlyle Secured Lending by 71.9% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,630 shares of the company's stock valued at $36,000 after purchasing an additional 1,100 shares during the period. Tower Research Capital LLC TRC raised its stake in Carlyle Secured Lending by 1,011.6% during the second quarter. Tower Research Capital LLC TRC now owns 4,313 shares of the company's stock worth $59,000 after acquiring an additional 3,925 shares in the last quarter. Catalyst Capital Advisors LLC acquired a new position in Carlyle Secured Lending during the second quarter worth $97,000. Finally, Canton Hathaway LLC raised its stake in Carlyle Secured Lending by 271.0% during the first quarter. Canton Hathaway LLC now owns 9,795 shares of the company's stock worth $158,000 after acquiring an additional 7,155 shares in the last quarter. 24.51% of the stock is currently owned by institutional investors.

Carlyle Secured Lending Company Profile

Carlyle Secured Lending, Inc is business development company specializing in first lien debt, senior secured loans, second lien senior secured loan unsecured debt, mezzanine debt and investments in equities. It specializes in directly investing. It specializes in middle market. It targets healthcare and pharmaceutical, aerospace and defense, high tech industries, business services, software, beverage food and tobacco, hotel gamming and leisure, banking finance insurance and in real estate sector.