Oaktree Specialty Lending Corp. (NASDAQ:OCSL) Receives Average Rating of "Hold" from Brokerages

Key Points

• Oaktree Specialty Lending has a consensus “Hold” rating from six analysts, with an average 12-month price target of $11.83 versus the reported share price of $12.67.
• Recent analyst views were mixed: B. Riley maintained a neutral rating, Weiss Ratings upgraded the stock to hold, while Wall Street Zen downgraded it to sell.
• The company narrowly beat quarterly EPS expectations at $0.37, but revenue was slightly below estimates. Oaktree also reduced its quarterly dividend to $0.03 per share, implying a 0.9% annualized yield.

Shares of Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report) have been given a consensus rating of "Hold" by the six analysts that are currently covering the company, Marketbeat.com reports. Six analysts have rated the stock with a hold rating. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $11.8333.

Several research analysts have recently issued reports on OCSL shares. B. Riley Financial reiterated a "neutral" rating on shares of Oaktree Specialty Lending in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Oaktree Specialty Lending from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, August 7th. Finally, Wall Street Zen cut Oaktree Specialty Lending from a "hold" rating to a "sell" rating in a research report on Tuesday, August 25th.

Hedge Funds Weigh In On Oaktree Specialty Lending

A number of hedge funds have recently bought and sold shares of OCSL. International Assets Investment Management LLC lifted its stake in Oaktree Specialty Lending by 118.3% during the 1st quarter. International Assets Investment Management LLC now owns 3,150 shares of the credit services provider's stock valued at $35,000 after acquiring an additional 1,707 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Oaktree Specialty Lending during the second quarter valued at approximately $40,000. Fifth Third Bancorp purchased a new position in shares of Oaktree Specialty Lending during the first quarter valued at approximately $41,000. Allworth Financial LP bought a new position in Oaktree Specialty Lending during the second quarter valued at approximately $41,000. Finally, Tower Research Capital LLC TRC boosted its holdings in Oaktree Specialty Lending by 1,025.1% in the second quarter. Tower Research Capital LLC TRC now owns 4,163 shares of the credit services provider's stock worth $57,000 after purchasing an additional 3,793 shares during the last quarter. Hedge funds and other institutional investors own 36.79% of the company's stock.

Oaktree Specialty Lending Price Performance

OCSL opened at $12.67 on Friday. The stock has a 50-day moving average price of $12.50 and a 200-day moving average price of $12.06. The company has a debt-to-equity ratio of 0.68, a current ratio of 0.19 and a quick ratio of 0.19. The firm has a market cap of $1.12 billion, a PE ratio of 26.40 and a beta of 0.50. Oaktree Specialty Lending has a 1 year low of $10.63 and a 1 year high of $14.31.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The credit services provider reported $0.37 EPS for the quarter, beating the consensus estimate of $0.36 by $0.01. The company had revenue of $69.15 million for the quarter, compared to the consensus estimate 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 predict that Oaktree Specialty Lending will post 1.51 earnings per share for the current fiscal year.

Oaktree Specialty Lending Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a dividend of $0.03 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.12 annualized dividend and a dividend yield of 0.9%. Oaktree Specialty Lending's dividend payout ratio (DPR) is 250.00%.

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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