Palliser Capital UK Ltd Buys Shares of 270,993 Oaktree Specialty Lending Corp. $OCSL

Key Points

• Palliser Capital UK acquired 270,993 Oaktree Specialty Lending shares worth approximately $3.24 million, representing about 0.31% of the company and 1.7% of Palliser’s portfolio. Institutional investors collectively own 36.79% of OCSL.
• Oaktree Specialty Lending reported quarterly EPS of $0.37, slightly ahead of the $0.36 consensus estimate, while revenue of $69.15 million fell just below expectations. Analysts maintain a consensus “Hold” rating with an average price target of $11.83.
• The company declared a quarterly dividend of $0.03 per share, equivalent to an annualized yield of 0.9%, but its payout ratio stands at a high 250%.

Palliser Capital UK Ltd bought a new stake in Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 270,993 shares of the credit services provider's stock, valued at approximately $3,236,000. Oaktree Specialty Lending accounts for approximately 1.7% of Palliser Capital UK Ltd's investment portfolio, making the stock its 11th largest holding. Palliser Capital UK Ltd owned approximately 0.31% of Oaktree Specialty Lending at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. International Assets Investment Management LLC lifted its holdings 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 purchasing an additional 1,707 shares during the period. Garner Asset Management Corp acquired a new position in Oaktree Specialty Lending in the 4th quarter valued at $38,000. Northwestern Mutual Wealth Management Co. acquired a new position in Oaktree Specialty Lending in the 2nd quarter valued at $40,000. Fifth Third Bancorp purchased a new position in Oaktree Specialty Lending during the 1st quarter worth $41,000. Finally, Allworth Financial LP purchased a new position in Oaktree Specialty Lending during the 2nd quarter worth $41,000. Hedge funds and other institutional investors own 36.79% of the company's stock.

Oaktree Specialty Lending Price Performance

Oaktree Specialty Lending stock opened at $13.16 on Tuesday. The company has a market cap of $1.16 billion, a P/E ratio of 27.42 and a beta of 0.49. Oaktree Specialty Lending Corp. has a one year low of $10.63 and a one year high of $14.31. The business has a fifty day moving average of $12.16 and a two-hundred day moving average of $11.97. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.19 and a current ratio of 0.19.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The credit services provider reported $0.37 earnings per share for the quarter, topping 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%. As a group, analysts predict that Oaktree Specialty Lending Corp. will post 1.51 earnings per share for the current fiscal year.

Oaktree Specialty Lending Cuts Dividend

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

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. 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. B. Riley Financial restated a "neutral" rating on shares of Oaktree Specialty Lending in a research report on Friday, August 7th. Wall Street Zen downgraded shares of Oaktree Specialty Lending from a "hold" rating to a "sell" rating in a research report on Tuesday. Finally, Oppenheimer set a $13.00 price objective on Oaktree Specialty Lending in a report on Wednesday, May 6th. Six investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $11.83.

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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