Carlyle Secured Lending, Inc. (NASDAQ:CGBD) experienced notable insider selling when Director John Nestor offloaded 7,085 shares of the company’s stock on November 14, 2023. The shares were sold at an average price of $11.87, resulting in a total transaction value of $84,098.95. Following this sale, Nestor’s remaining holdings amounted to 7,508 shares, valued at approximately $89,119.96, marking a significant decrease of 48.55% in his stake.
This transaction was disclosed via a legal filing with the Securities and Exchange Commission, which is accessible through the agency’s online portal. The market reacted positively to the news, with shares of Carlyle Secured Lending rising by 1.1% to reach $12.69 during trading hours on Tuesday. The trading volume for the day hit 353,852 shares, slightly below the average volume of 415,848.
Carlyle Secured Lending has seen fluctuations in its stock price over the past year, with a low of $11.55 and a high of $18.64. Currently, the company’s market capitalization stands at $646.68 million, with a price-to-earnings ratio of 10.75 and a beta of 0.68. Financial ratios indicate a debt-to-equity ratio of 1.10, a quick ratio of 0.90, and a current ratio of 0.90.
On November 4, 2023, Carlyle Secured Lending reported its quarterly earnings, revealing an earnings per share (EPS) of $0.38, which fell short of analysts’ expectations of $0.39. The company’s revenue for the quarter was $66.51 million, compared to anticipated revenue of $69.61 million. The firm achieved a return on equity of 9.24% and reported a net margin of 30.18%. Analysts project that Carlyle Secured Lending will post an EPS of $1.97 for the current fiscal year.
Analyst Ratings and Price Targets
Carlyle Secured Lending has attracted attention from several financial analysts recently. Zacks Research downgraded the company from a “hold” rating to a “strong sell” on November 10, 2023. Meanwhile, Wells Fargo & Company lowered their price target from $15.00 to $14.00 while maintaining an “overweight” rating in their report dated November 6. B. Riley adjusted their target price from $14.50 to $13.00 and categorized the stock as “neutral” on November 11.
Conversely, Raymond James Financial upgraded Carlyle Secured Lending from a “market perform” rating to “outperform,” setting a target price of $15.00 in a report published on October 7. Additionally, JPMorgan Chase & Co. decreased its price target from $12.50 to $12.00 on November 6, maintaining a “neutral” rating.
Currently, two analysts have assigned a Buy rating to the stock, three issued a Hold rating, and two recommended a Sell. The consensus rating for Carlyle Secured Lending stands at “Hold” with an average target price of $14.33, according to data from MarketBeat.com.
Institutional Investor Activity
Recent activity among institutional investors has also impacted Carlyle Secured Lending’s stock performance. Several hedge funds acquired new stakes in the company during the third quarter. For instance, Rossby Financial LCC invested approximately $25,000, while Quarry LP initiated a position worth $32,000 in the first quarter.
Further, Northwestern Mutual Wealth Management Co. increased its holdings by 71.9% during the second quarter, now owning 2,630 shares valued at around $36,000. The State of Alaska Department of Revenue acquired a new stake valued at about $37,000 in the third quarter. Finally, Tower Research Capital LLC TRC raised its stake significantly by 1,011.6%, now holding 4,313 shares valued at $59,000 after purchasing an additional 3,925 shares.
Currently, hedge funds and institutional investors hold approximately 24.51% of Carlyle Secured Lending’s stock, reflecting significant interest in the company’s operations and potential for growth.
Carlyle Secured Lending, Inc. operates as a business development company specializing in first lien debt, senior secured loans, and investments in various sectors, including healthcare, aerospace, technology, and real estate. As the company navigates market conditions, its recent insider sales and analyst ratings may have lasting implications on its stock trajectory.
