Carlyle Secured Lending (NASDAQ:CGBD) Hits New 52-Week Low - Should You Sell?

Key Points

• Carlyle Secured Lending hit a new 52-week low, trading as low as $10.25 amid heavy volume, highlighting recent weakness in the stock.
• Analysts remain cautious overall: while Wells Fargo cut its price target to $12 and B. Riley reiterated a buy, the stock’s consensus rating is still Hold with an average price target of $12.50.
• The company recently reported quarterly EPS of $0.36, beating estimates by a penny, and also paid a $0.35 dividend that implies a 13.5% yield but comes with a very high payout ratio of 197.18%.

Carlyle Secured Lending, Inc. (NASDAQ:CGBD - Get Free Report)'s stock price reached a new 52-week low during trading on Monday . The stock traded as low as $10.25 and last traded at $10.2650, with a volume of 529689 shares trading hands. The stock had previously closed at $10.45.

Analysts Set New Price Targets

CGBD has been the subject of a number of recent analyst reports. Wells Fargo & Company decreased their price target on Carlyle Secured Lending from $13.00 to $12.00 and set an "overweight" rating for the company in a report on Wednesday, May 13th. B. Riley Financial reiterated a "buy" rating on shares of Carlyle Secured Lending in a report on Tuesday, May 12th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Carlyle Secured Lending currently has an average rating of "Hold" and an average price target of $12.50.

Carlyle Secured Lending Stock Performance

The company has a current ratio of 1.72, a quick ratio of 1.72 and a debt-to-equity ratio of 1.24. The firm's fifty day moving average price is $10.79 and its 200-day moving average price is $11.40. The firm has a market cap of $719.67 million, a price-to-earnings ratio of 14.59 and a beta of 0.62.

Carlyle Secured Lending (NASDAQ:CGBD - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.35 by $0.01. Carlyle Secured Lending had a net margin of 19.52% and a return on equity of 8.99%. The firm had revenue of $64.08 million for the quarter, compared to analyst estimates of $65.78 million. Analysts expect that Carlyle Secured Lending, Inc. will post 1.35 earnings per share for the current year.

Carlyle Secured Lending Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 16th. Stockholders of record on Tuesday, June 30th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 13.5%. The ex-dividend date of this dividend was Tuesday, June 30th. Carlyle Secured Lending's payout ratio is presently 197.18%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CGBD. Transcend Capital Advisors LLC increased its stake in Carlyle Secured Lending by 2.8% in the 4th quarter. Transcend Capital Advisors LLC now owns 29,451 shares of the company's stock valued at $368,000 after purchasing an additional 805 shares in the last quarter. Mackenzie Financial Corp boosted its position in Carlyle Secured Lending by 3.2% during the fourth quarter. Mackenzie Financial Corp now owns 27,466 shares of the company's stock worth $348,000 after purchasing an additional 857 shares in the last quarter. Advisory Research Inc. grew its holdings in Carlyle Secured Lending by 9.2% in the third quarter. Advisory Research Inc. now owns 11,340 shares of the company's stock valued at $142,000 after purchasing an additional 953 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Carlyle Secured Lending by 71.9% in 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 last quarter. Finally, Sunbelt Securities Inc. increased its position in shares of Carlyle Secured Lending by 3.3% in the fourth quarter. Sunbelt Securities Inc. now owns 34,182 shares of the company's stock valued at $427,000 after buying an additional 1,100 shares in the last quarter. Hedge funds and other institutional investors own 24.51% of the company's stock.

About Carlyle Secured Lending

Carlyle Secured Lending, Inc NASDAQ: CGBD is a closed-end, non-diversified business development company that provides customized debt financing solutions to middle-market companies. Chartered under the Investment Company Act of 1940, the company invests primarily in floating-rate senior secured loans, including first-lien, unitranche and one-stop structures. Its objective is to generate current income and capital appreciation through disciplined credit selection and active portfolio management.

The firm focuses on U.S.

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