Nuveen Churchill Direct Lending Corp. (NYSE:NCDL) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Nuveen Churchill Direct Lending Corp. has a consensus analyst rating of "Reduce", with two sell ratings, two hold ratings, and one buy rating. The average 12-month price target is about $14.44.
• The company’s recent quarterly results were mixed: it reported $0.41 EPS, just below expectations, and revenue of $17.15 million versus the much higher consensus estimate. Analysts still expect full-year EPS of 1.6.
• The board declared a quarterly dividend of $0.36 per share, payable July 28, implying an annualized yield of about 11.4%. However, the dividend payout ratio is elevated at 120%.

Shares of Nuveen Churchill Direct Lending Corp. (NYSE:NCDL - Get Free Report) have received an average rating of "Reduce" from the five research firms that are presently covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating on the company. The average 12-month price objective among analysts that have covered the stock in the last year is $14.4375.

A number of equities analysts recently weighed in on NCDL shares. Zacks Research cut Nuveen Churchill Direct Lending from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 26th. UBS Group cut their target price on Nuveen Churchill Direct Lending from $15.50 to $14.75 and set a "neutral" rating for the company in a research note on Monday, May 18th. Wells Fargo & Company cut shares of Nuveen Churchill Direct Lending from an "equal weight" rating to an "underweight" rating and reduced their price target for the company from $13.00 to $12.00 in a research report on Friday, June 12th. Finally, Wall Street Zen downgraded shares of Nuveen Churchill Direct Lending from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th.

Insider Buying and Selling

In related news, VP John Mccally acquired 7,500 shares of Nuveen Churchill Direct Lending stock in a transaction dated Friday, May 15th. The shares were purchased at an average cost of $13.27 per share, with a total value of $99,525.00. Following the completion of the purchase, the vice president owned 15,245 shares of the company's stock, valued at $202,301.15. This represents a 96.84% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Marissa Hassen acquired 3,782 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was bought at an average price of $13.21 per share, for a total transaction of $49,960.22. Following the acquisition, the chief accounting officer owned 9,780 shares of the company's stock, valued at approximately $129,193.80. This trade represents a 63.05% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 16,282 shares of company stock worth $215,485 in the last 90 days. 0.68% of the stock is owned by company insiders.

Institutional Investors Weigh In On Nuveen Churchill Direct Lending

Hedge funds and other institutional investors have recently modified their holdings of the stock. Quantbot Technologies LP bought a new position in Nuveen Churchill Direct Lending during the 2nd quarter worth approximately $152,000. Cresset Asset Management LLC lifted its position in Nuveen Churchill Direct Lending by 17.6% in the second quarter. Cresset Asset Management LLC now owns 36,025 shares of the company's stock valued at $599,000 after purchasing an additional 5,391 shares during the last quarter. NewEdge Advisors LLC lifted its position in Nuveen Churchill Direct Lending by 33.0% in the second quarter. NewEdge Advisors LLC now owns 4,511 shares of the company's stock valued at $73,000 after purchasing an additional 1,118 shares during the last quarter. Sei Investments Co. boosted its stake in shares of Nuveen Churchill Direct Lending by 11.4% during the second quarter. Sei Investments Co. now owns 18,678 shares of the company's stock valued at $302,000 after purchasing an additional 1,918 shares during the period. Finally, Bank of America Corp DE boosted its stake in shares of Nuveen Churchill Direct Lending by 41.2% during the second quarter. Bank of America Corp DE now owns 86,036 shares of the company's stock valued at $1,393,000 after purchasing an additional 25,106 shares during the period.

Nuveen Churchill Direct Lending Trading Down 0.1%

NCDL stock opened at $12.68 on Monday. The firm has a 50 day moving average of $12.78 and a 200-day moving average of $13.29. Nuveen Churchill Direct Lending has a 12 month low of $11.97 and a 12 month high of $17.25. The firm has a market capitalization of $626.31 million, a P/E ratio of 10.57 and a beta of 0.51.

Nuveen Churchill Direct Lending (NYSE:NCDL - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.01). The firm had revenue of $17.15 million during the quarter, compared to the consensus estimate of $47.79 million. Nuveen Churchill Direct Lending had a return on equity of 9.80% and a net margin of 29.56%. Sell-side analysts predict that Nuveen Churchill Direct Lending will post 1.6 EPS for the current year.

Nuveen Churchill Direct Lending Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 28th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $1.44 annualized dividend and a dividend yield of 11.4%. Nuveen Churchill Direct Lending's dividend payout ratio (DPR) is currently 120.00%.

Nuveen Churchill Direct Lending Company Profile

Nuveen Churchill Direct Lending NYSE: NCDL is a closed-end management investment company that seeks to provide shareholders with attractive risk-adjusted returns through a diversified portfolio of direct lending instruments. Established in early 2022, NCDL focuses on privately negotiated debt investments in middle-market companies, primarily within the United States. The fund offers investors access to a segment of the credit markets that has historically been less correlated with public debt markets, aiming to capture yield premiums associated with private lending.

The fund’s investment strategy centers on senior secured loans, unitranche financings and selectively structured mezzanine debt.

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