Wall Street Zen Downgrades Oaktree Specialty Lending (NASDAQ:OCSL) to Sell

Key Points

• Wall Street Zen downgraded Oaktree Specialty Lending from “hold” to “sell,” while the broader analyst consensus remains “Hold” with a $11.83 price target.
• OCSL shares opened at $13.16 and have traded between $10.63 and $14.31 over the past year; the stock’s 50-day and 200-day moving averages are $12.16 and $11.97, respectively.
• The company slightly exceeded quarterly EPS expectations, reporting $0.37 versus the $0.36 estimate, though revenue of $69.15 million fell short of the $69.40 million forecast.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Tuesday.

Several other brokerages have also recently weighed in on OCSL. Oppenheimer set a $13.00 price objective on Oaktree Specialty Lending in a report on Wednesday, May 6th. B. Riley Financial reissued a "neutral" rating on shares of Oaktree Specialty Lending in a research report on Friday, August 7th. Finally, Weiss Ratings raised shares of Oaktree Specialty Lending from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, August 7th. Six analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $11.83.

Oaktree Specialty Lending Stock Performance

OCSL opened at $13.16 on Tuesday. Oaktree Specialty Lending has a 1 year low of $10.63 and a 1 year high of $14.31. The stock has a market cap of $1.16 billion, a PE ratio of 27.42 and a beta of 0.49. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 0.68. The stock's 50 day simple moving average is $12.16 and its 200-day simple moving average is $11.97.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last posted its earnings results on Wednesday, August 5th. The credit services provider reported $0.37 earnings per share for the quarter, beating analysts' consensus estimates of $0.36 by $0.01. The business had revenue of $69.15 million for the quarter, compared to analysts' expectations of $69.40 million. Oaktree Specialty Lending had a net margin of 14.45% and a return on equity of 9.70%. Sell-side analysts forecast that Oaktree Specialty Lending will post 1.51 EPS for the current year.

Institutional Investors Weigh In On Oaktree Specialty Lending

A number of institutional investors have recently modified their holdings of the company. Garner Asset Management Corp acquired a new position in shares of Oaktree Specialty Lending in the 4th quarter valued at about $38,000. International Assets Investment Management LLC increased its position in shares of Oaktree Specialty Lending by 118.3% during the first quarter. International Assets Investment Management LLC now owns 3,150 shares of the credit services provider's stock worth $35,000 after acquiring an additional 1,707 shares in the last quarter. Northwestern Mutual Wealth Management Co. bought a new stake in Oaktree Specialty Lending during the 2nd quarter worth approximately $40,000. Allworth Financial LP purchased a new stake in shares of Oaktree Specialty Lending in the second quarter valued at about $41,000. Finally, Fifth Third Bancorp bought a new position in shares of Oaktree Specialty Lending during the first quarter valued at about $41,000. 36.79% of the stock is owned by institutional investors.

Oaktree Specialty Lending Company Profile

Oaktree Specialty Lending Corporation NASDAQ: OCSL is a closed-end, externally managed specialty finance company structured as a business development company (BDC). Launched in 2014, Oaktree Specialty Lending provides customized debt solutions to U.S. middle-market companies, with a focus on senior secured loans, second-lien financings, mezzanine debt and select equity co-investments. The company’s investment strategy centers on floating-rate instruments designed to offer downside protection and income potential in varying interest rate environments.

The firm’s portfolio spans a diverse array of industries, including healthcare, technology, energy, business services and consumer products.

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