Zacks Research Downgrades Nuveen Churchill Direct Lending (NYSE:NCDL) to Strong Sell

Key Points

• Zacks Research downgraded Nuveen Churchill Direct Lending from Hold to Strong Sell, adding to a more cautious analyst tone around the stock.
• Other analysts have recently cut price targets on NCDL, and the stock now has an overall Hold consensus rating with an average target price of $15.35.
• The company’s latest earnings missed expectations, with EPS of $0.41 versus $0.42 expected and revenue of $17.15 million versus a much higher estimate.

Nuveen Churchill Direct Lending (NYSE:NCDL - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other equities research analysts also recently commented on the company. Truist Financial dropped their target price on Nuveen Churchill Direct Lending from $18.00 to $16.00 and set a "buy" rating on the stock in a report on Wednesday, March 4th. Wells Fargo & Company dropped their target price on 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 dropped their target price on Nuveen Churchill Direct Lending from $16.00 to $15.00 and set a "market perform" rating on the stock in a report on Friday, February 27th. Wall Street Zen raised Nuveen Churchill Direct Lending from a "sell" rating to a "hold" rating in a report on Sunday, May 17th. Finally, UBS Group dropped their target price on Nuveen Churchill Direct Lending from $15.50 to $14.75 and set a "neutral" rating on the stock in a report on Monday, May 18th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $15.35.

Nuveen Churchill Direct Lending Stock Up 0.0%

NYSE NCDL opened at $12.90 on Tuesday. Nuveen Churchill Direct Lending has a twelve month low of $12.43 and a twelve month high of $17.27. The firm has a market capitalization of $637.28 million, a PE ratio of 10.75 and a beta of 0.63. The stock's 50 day moving average is $13.51 and its 200 day moving average is $13.73.

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). Nuveen Churchill Direct Lending had a net margin of 29.56% and a return on equity of 9.80%. The firm had revenue of $17.15 million for the quarter, compared to the consensus estimate of $47.79 million. On average, research analysts anticipate that Nuveen Churchill Direct Lending will post 1.6 earnings per share for the current year.

Insider Transactions at Nuveen Churchill Direct Lending

In other Nuveen Churchill Direct Lending news, Treasurer Shaul Vichness purchased 5,000 shares of the firm's stock in a transaction dated Thursday, March 12th. The stock was purchased 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 directly owned 25,000 shares of the company's stock, valued at $328,250. This trade represents a 25.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director James Joseph Ritchie purchased 17,857 shares of the firm's stock in a transaction dated Tuesday, March 10th. The stock was acquired at an average price of $13.71 per share, with a total value of $244,819.47. Following the purchase, the director directly owned 78,193 shares of the company's stock, valued at approximately $1,072,026.03. The trade was a 29.60% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have bought 56,329 shares of company stock valued at $751,066. Insiders own 0.68% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. BNP Paribas Financial Markets lifted its holdings 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 valued at $33,000 after acquiring 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 valued at about $38,000. NewEdge Advisors LLC lifted its holdings 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 acquiring an additional 1,118 shares during the period. Quadrant Capital Group LLC bought a new position in Nuveen Churchill Direct Lending in the third quarter valued at about $80,000. Finally, State of Wyoming bought a new position in Nuveen Churchill Direct Lending in the second quarter valued at about $108,000.

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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