Nuveen Churchill Direct Lending Corp. (NYSE:NCDL) Short Interest Down 25.1% in April

Key Points

• Short interest fell 25.1% in April to 655,810 shares, equal to 1.3% of the float and a short-interest ratio of 2.6 days.
• Analysts have a consensus rating of "Hold" with a consensus target of $15.50; recent revisions were mixed (UBS raised its target while Wells Fargo and Truist trimmed theirs).
• The company reported quarterly EPS of $0.44 (beat by $0.01) but revenue missed at $26.36M versus $49.60M expected, and it pays a 10.2% dividend with a payout ratio of 109.9%, signaling potential sustainability concerns.

Nuveen Churchill Direct Lending Corp. (NYSE:NCDL - Get Free Report) saw a large drop in short interest during the month of April. As of April 15th, there was short interest totaling 655,810 shares, a drop of 25.1% from the March 31st total of 875,217 shares. Currently, 1.3% of the shares of the company are sold short. Based on an average trading volume of 250,775 shares, the short-interest ratio is currently 2.6 days.

Analyst Ratings Changes

A number of brokerages recently issued reports on NCDL. UBS Group raised their target price on Nuveen Churchill Direct Lending from $14.75 to $15.50 and gave the stock a "neutral" rating in a research note on Monday, April 20th. Wall Street Zen upgraded Nuveen Churchill Direct Lending from a "sell" rating to a "hold" rating in a research note on Tuesday, March 10th. Wells Fargo & Company reduced their target price on Nuveen Churchill Direct Lending from $14.00 to $13.00 and set an "equal weight" rating for the company in a research note on Wednesday, March 4th. Truist Financial reduced their target price on Nuveen Churchill Direct Lending from $18.00 to $16.00 and set a "buy" rating for the company in a research note on Wednesday, March 4th. Finally, Zacks Research upgraded Nuveen Churchill Direct Lending from a "strong sell" rating to a "hold" rating in a research note on Friday, January 9th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $15.50.

Nuveen Churchill Direct Lending Stock Performance

Shares of NYSE NCDL traded down $0.25 during trading on Wednesday, reaching $14.12. 137,990 shares of the company traded hands, compared to its average volume of 253,973. The firm's fifty day simple moving average is $13.47 and its 200 day simple moving average is $13.83. The stock has a market cap of $697.10 million, a P/E ratio of 10.77 and a beta of 0.32. Nuveen Churchill Direct Lending has a 12-month low of $12.43 and a 12-month high of $17.27. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 1.27.

Nuveen Churchill Direct Lending (NYSE:NCDL - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.43 by $0.01. Nuveen Churchill Direct Lending had a return on equity of 10.48% and a net margin of 31.57%.The business had revenue of $26.36 million during the quarter, compared to analyst estimates of $49.60 million. As a group, research analysts anticipate that Nuveen Churchill Direct Lending will post 1.66 earnings per share for the current fiscal year.

Nuveen Churchill Direct Lending Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, April 28th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.36 per share. The ex-dividend date was Tuesday, March 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 10.2%. Nuveen Churchill Direct Lending's dividend payout ratio (DPR) is 109.92%.

Insider Buying and Selling

In other news, Treasurer Shaul Vichness bought 5,000 shares of Nuveen Churchill Direct Lending stock in a transaction that occurred on Thursday, March 12th. The stock was bought at an average price of $13.13 per share, for a total transaction of $65,650.00. Following the purchase, the treasurer directly owned 25,000 shares of the company's stock, valued at approximately $328,250. The trade was a 25.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Kenneth J. Kencel bought 10,000 shares of Nuveen Churchill Direct Lending stock in a transaction that occurred on Tuesday, March 3rd. The stock was purchased at an average price of $13.04 per share, with a total value of $130,400.00. Following the purchase, the chief executive officer directly owned 58,117 shares in the company, valued at $757,845.68. The trade was a 20.78% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 47,547 shares of company stock worth $635,105 over the last three months. Corporate insiders own 0.68% of the company's stock.

Institutional Investors Weigh In On Nuveen Churchill Direct Lending

Institutional investors have recently modified their holdings of the business. BNP Paribas Financial Markets grew its position in shares of Nuveen Churchill Direct Lending by 190.2% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,400 shares of the company's stock valued at $33,000 after acquiring an additional 1,573 shares during the period. Advisory Services Network LLC acquired a new stake in shares of Nuveen Churchill Direct Lending during the 3rd quarter valued at about $38,000. NewEdge Advisors LLC grew its position in shares of Nuveen Churchill Direct Lending by 33.0% during the 2nd quarter. NewEdge Advisors LLC now owns 4,511 shares of the company's stock valued at $73,000 after acquiring an additional 1,118 shares during the period. Quadrant Capital Group LLC acquired a new stake in shares of Nuveen Churchill Direct Lending during the 3rd quarter valued at about $80,000. Finally, Global Retirement Partners LLC acquired a new stake in shares of Nuveen Churchill Direct Lending during the 3rd quarter valued at about $85,000.

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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