Pinnacle Associates Ltd. Lowers Stake in Oaktree Specialty Lending Corp. (NASDAQ:OCSL)

Key Points

• Pinnacle Associates Ltd. reduced its stake in Oaktree Specialty Lending Corp. by 62.7%, now owning 150,381 shares valued at approximately $2.31 million.
• Oaktree Specialty Lending reported Q1 earnings of $0.45 per share, falling short of analysts' expectations of $0.51, with revenues also missing estimates.
• The company declared a quarterly dividend of $0.40, representing an annual yield of 11.07%, but has a remarkably high payout ratio of 1,230.77%.

Pinnacle Associates Ltd. cut its holdings in shares of Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Free Report) by 62.7% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 150,381 shares of the credit services provider's stock after selling 252,977 shares during the period. Pinnacle Associates Ltd. owned 0.18% of Oaktree Specialty Lending worth $2,310,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the business. Claret Asset Management Corp increased its position in shares of Oaktree Specialty Lending by 0.9% during the fourth quarter. Claret Asset Management Corp now owns 1,495,190 shares of the credit services provider's stock worth $22,846,000 after purchasing an additional 13,949 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in shares of Oaktree Specialty Lending during the fourth quarter worth $18,109,000. Invesco Ltd. increased its position in shares of Oaktree Specialty Lending by 1,300.1% during the fourth quarter. Invesco Ltd. now owns 875,913 shares of the credit services provider's stock worth $13,384,000 after purchasing an additional 813,352 shares in the last quarter. Melia Wealth LLC increased its position in shares of Oaktree Specialty Lending by 5.2% during the fourth quarter. Melia Wealth LLC now owns 801,216 shares of the credit services provider's stock worth $12,243,000 after purchasing an additional 39,414 shares in the last quarter. Finally, Castlekeep Investment Advisors LLC acquired a new position in shares of Oaktree Specialty Lending during the fourth quarter worth $9,959,000. 36.79% of the stock is owned by institutional investors and hedge funds.

Oaktree Specialty Lending Stock Performance

NASDAQ OCSL opened at $14.46 on Friday. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of 111.23 and a beta of 0.68. Oaktree Specialty Lending Corp. has a twelve month low of $12.50 and a twelve month high of $18.46. The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.63. The stock has a 50-day moving average of $14.16 and a 200 day moving average of $14.76.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The credit services provider reported $0.45 earnings per share for the quarter, missing analysts' consensus estimates of $0.51 by ($0.06). The business had revenue of $70.52 million during the quarter, compared to analyst estimates of $84.67 million. Oaktree Specialty Lending had a return on equity of 11.77% and a net margin of 2.55%. During the same period in the previous year, the company posted $0.56 EPS. Sell-side analysts anticipate that Oaktree Specialty Lending Corp. will post 2.06 EPS for the current fiscal year.

Oaktree Specialty Lending Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 16th were issued a $0.40 dividend. The ex-dividend date was Monday, June 16th. This represents a $1.60 dividend on an annualized basis and a yield of 11.07%. Oaktree Specialty Lending's payout ratio is 1,230.77%.

Insider Transactions at Oaktree Specialty Lending

In other Oaktree Specialty Lending news, Director Craig A. Jacobson purchased 14,910 shares of Oaktree Specialty Lending stock in a transaction that occurred on Tuesday, May 6th. The stock was bought at an average price of $13.41 per share, with a total value of $199,943.10. Following the acquisition, the director owned 71,667 shares of the company's stock, valued at $961,054.47. This trade represents a 26.27% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Armen Panossian purchased 8,000 shares of the firm's stock in a transaction that occurred on Thursday, May 15th. The stock was bought at an average cost of $14.13 per share, for a total transaction of $113,040.00. Following the completion of the purchase, the insider directly owned 20,789 shares in the company, valued at $293,748.57. This represents a 62.55% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.28% of the company's stock.

Analysts Set New Price Targets

OCSL has been the topic of a number of recent analyst reports. Wells Fargo & Company reduced their price target on Oaktree Specialty Lending from $15.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Monday, April 28th. B. Riley initiated coverage on Oaktree Specialty Lending in a research report on Tuesday, May 13th. They issued a "neutral" rating and a $14.00 target price on the stock. Keefe, Bruyette & Woods cut their target price on Oaktree Specialty Lending from $16.50 to $15.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 8th. JPMorgan Chase & Co. cut their target price on Oaktree Specialty Lending from $15.00 to $14.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. Finally, Wall Street Zen downgraded Oaktree Specialty Lending from a "hold" rating to a "sell" rating in a research report on Monday, May 5th. One research analyst has rated the stock with a sell rating and seven have given a hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $15.83.

Oaktree Specialty Lending Profile

Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies.

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