Nuveen Churchill Direct Lending (NYSE:NCDL) Issues Earnings Results

Nuveen Churchill Direct Lending (NYSE:NCDL - Get Free Report) announced its earnings results on Thursday. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.01), Zacks reports. Nuveen Churchill Direct Lending had a return on equity of 9.75% and a net margin of 29.56%.The company had revenue of $17.15 million for the quarter, compared to the consensus estimate of $47.79 million.

Here are the key takeaways from Nuveen Churchill Direct Lending's conference call:

• Reported Q1 net investment income of $0.41 per share (or $0.43 excluding ~$0.02 of one-time refinancing costs) and the board declared a Q2 distribution of $0.38 per share (regular $0.36 + supplemental $0.02).
• Portfolio credit metrics remain strong with a weighted average internal risk rating of 4.3, portfolio net leverage of 5.1x, interest coverage of 2.3x, and non‑accruals at just 0.6% of fair value.
• Net asset value fell to $17.50 from $17.72 (‑1.2%) as Q1 GAAP results included $0.23 per share of net realized and unrealized losses driven by benchmark spread widening and several underperforming positions (one new non‑accrual with $7.2M cost).
• Deal activity and redeployment accelerated in Q1 with gross originations ≈ $83M and gross fundings ≈ $85M, while the portfolio remains concentrated in senior first‑lien middle‑market loans (~90% of fair value) and the firm reports renewed pipeline momentum.
• Improved financing profile after refinancing the NCDL CLO‑II (lowered cost from SOFR+250bps to SOFR+144bps) helped reduce weighted average cost of debt to SOFR+186bps, supporting returns as management maintains leverage toward the upper end of its target range.

Nuveen Churchill Direct Lending Price Performance

NYSE:NCDL opened at $13.26 on Tuesday. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.85 and a quick ratio of 1.85. Nuveen Churchill Direct Lending has a one year low of $12.43 and a one year high of $17.27. The company has a fifty day moving average price of $13.55 and a 200 day moving average price of $13.85. The stock has a market cap of $654.91 million, a P/E ratio of 11.05 and a beta of 0.63.

Nuveen Churchill Direct Lending Dividend Announcement

The business also recently announced 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. This represents a $1.44 annualized dividend and a yield of 10.9%. The ex-dividend date is Tuesday, June 30th. Nuveen Churchill Direct Lending's dividend payout ratio is presently 120.00%.

Insider Activity at Nuveen Churchill Direct Lending

In related 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 acquired at an average price of $13.13 per share, for a total transaction of $65,650.00. Following the completion of the purchase, the treasurer owned 25,000 shares in the company, valued at approximately $328,250. This represents a 25.00% 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, insider Jason Strife bought 7,690 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were purchased at an average cost of $13.40 per share, for a total transaction of $103,046.00. Following the completion of the transaction, the insider owned 15,737 shares of the company's stock, valued at $210,875.80. This represents a 95.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have purchased 47,547 shares of company stock worth $635,105. Insiders own 0.68% of the company's stock.

Institutional Trading of Nuveen Churchill Direct Lending

Hedge funds have recently modified their holdings of the company. BNP Paribas Financial Markets increased its position in shares of Nuveen Churchill Direct Lending by 190.2% during the third quarter. BNP Paribas Financial Markets now owns 2,400 shares of the company's stock valued at $33,000 after purchasing an additional 1,573 shares during the period. Advisory Services Network LLC bought a new position in Nuveen Churchill Direct Lending in the third quarter worth $38,000. 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 worth $73,000 after purchasing an additional 1,118 shares during the period. Quadrant Capital Group LLC acquired a new stake in Nuveen Churchill Direct Lending during the third quarter worth $80,000. Finally, State of Wyoming acquired a new stake in Nuveen Churchill Direct Lending during the second quarter worth $108,000.

Analyst Ratings Changes

A number of analysts have recently weighed in on NCDL shares. Wall Street Zen cut shares of Nuveen Churchill Direct Lending from a "hold" rating to a "sell" rating in a research note on Saturday. Wells Fargo & Company dropped their target price on shares of Nuveen Churchill Direct Lending from $14.00 to $13.00 and set an "equal weight" rating on the stock in a report on Wednesday, March 4th. Keefe, Bruyette & Woods cut their target price on shares of Nuveen Churchill Direct Lending from $16.00 to $15.00 and set a "market perform" rating for the company in a research report on Friday, February 27th. Truist Financial decreased their price target on shares of Nuveen Churchill Direct Lending from $18.00 to $16.00 and set a "buy" rating for the company in a report on Wednesday, March 4th. Finally, UBS Group raised their price target on Nuveen Churchill Direct Lending from $14.75 to $15.50 and gave the company a "neutral" rating in a research report on Monday, April 20th. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $15.50.

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.