Nuveen Churchill Direct Lending Corp. (NYSE:NCDL) Short Interest Update

Key Points

• Short interest in NCDL surged 76.1% in June to 1,022,863 shares, equal to about 2.1% of the float and a 3.5-day short-interest ratio.
• Analyst sentiment remains cautious, with several firms cutting ratings or price targets; the consensus view is currently “Reduce” with an average target price of $14.44.
• The company declared a quarterly dividend of $0.36 per share, which annualizes to $1.44 and implies an 11.1% yield, though the payout ratio is high at 120%.

Nuveen Churchill Direct Lending Corp. (NYSE:NCDL - Get Free Report) was the target of a significant increase in short interest during the month of June. As of June 30th, there was short interest totaling 1,022,863 shares, an increase of 76.1% from the June 15th total of 580,918 shares. Based on an average daily trading volume, of 290,143 shares, the short-interest ratio is currently 3.5 days. Currently, 2.1% of the shares of the company are short sold.

Wall Street Analysts Forecast Growth

NCDL has been the subject of several recent analyst reports. UBS Group dropped their target price on shares of Nuveen Churchill Direct Lending from $15.50 to $14.75 and set a "neutral" rating for the company in a report on Monday, May 18th. Wall Street Zen lowered Nuveen Churchill Direct Lending from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th. Wells Fargo & Company cut Nuveen Churchill Direct Lending from an "equal weight" rating to an "underweight" rating and cut their target price for the stock from $13.00 to $12.00 in a research report on Friday, June 12th. Finally, Zacks Research cut Nuveen Churchill Direct Lending from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 26th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $14.44.

Insider Buying and Selling at Nuveen Churchill Direct Lending

In other Nuveen Churchill Direct Lending news, VP John Mccally purchased 7,500 shares of the firm's stock in a transaction on Friday, May 15th. The shares were acquired at an average cost of $13.27 per share, for a total transaction of $99,525.00. Following the completion of the transaction, the vice president owned 15,245 shares of the company's stock, valued at approximately $202,301.15. The trade was a 96.84% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Treasurer Shaul Vichness bought 5,000 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was bought at an average cost of $13.20 per share, for a total transaction of $66,000.00. Following the completion of the acquisition, the treasurer owned 30,705 shares in the company, valued at $405,306. This trade represents a 19.45% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders acquired 16,282 shares of company stock valued at $215,485. Insiders own 0.68% of the company's stock.

Hedge Funds Weigh In On Nuveen Churchill Direct Lending

A number of institutional investors and hedge funds have recently made changes to their positions in the business. BNP Paribas Financial Markets grew its position in Nuveen Churchill Direct Lending by 190.2% in the third quarter. BNP Paribas Financial Markets now owns 2,400 shares of the company's stock worth $33,000 after acquiring an additional 1,573 shares in the last quarter. Advisory Services Network LLC purchased a new position in shares of Nuveen Churchill Direct Lending in the 3rd quarter worth approximately $38,000. NewEdge Advisors LLC boosted its holdings in shares of Nuveen Churchill Direct Lending by 33.0% in the 2nd quarter. NewEdge Advisors LLC now owns 4,511 shares of the company's stock worth $73,000 after purchasing an additional 1,118 shares during the period. Quadrant Capital Group LLC bought a new position in shares of Nuveen Churchill Direct Lending during the 3rd quarter valued at approximately $80,000. Finally, State of Wyoming bought a new position in shares of Nuveen Churchill Direct Lending during the 2nd quarter valued at approximately $108,000.

Nuveen Churchill Direct Lending Stock Up 1.6%

NCDL opened at $12.99 on Friday. The company has a market capitalization of $641.82 million, a PE ratio of 10.83 and a beta of 0.51. The firm has a 50-day simple moving average of $12.79 and a two-hundred day simple moving average of $13.30. Nuveen Churchill Direct Lending has a 52 week low of $11.97 and a 52 week high of $17.27.

Nuveen Churchill Direct Lending (NYSE:NCDL - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.41 earnings per share (EPS) 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%. As a group, sell-side analysts expect that Nuveen Churchill Direct Lending will post 1.6 earnings per share for the current year.

Nuveen Churchill Direct Lending Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 28th. Investors of record on Tuesday, June 30th will be paid a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $1.44 dividend on an annualized basis and a yield of 11.1%. Nuveen Churchill Direct Lending's dividend payout ratio is presently 120.00%.

About Nuveen Churchill Direct Lending

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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