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

Key Points

• Analysts are neutral on OCSL: The stock has a consensus rating of “Hold” from six covering analysts, with an average 12-month price target of about $12.38.
• Recent earnings topped expectations: Oaktree Specialty Lending reported $0.38 EPS for the quarter, beating estimates of $0.36, though revenue came in below analyst forecasts.
• The company cut its dividend: OCSL declared a $0.30 quarterly dividend, implying a 9.9% yield, but its payout ratio is very high at 280.7%.

Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report) has received a consensus recommendation of "Hold" from the six analysts that are presently covering the stock, Marketbeat Ratings reports. Six investment analysts have rated the stock with a hold recommendation. The average twelve-month price target among brokers that have covered the stock in the last year is $12.3750.

A number of research firms have commented on OCSL. Wall Street Zen raised Oaktree Specialty Lending from a "sell" rating to a "hold" rating in a research report on Saturday, April 11th. Weiss Ratings raised Oaktree Specialty Lending from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, April 15th. Zacks Research raised Oaktree Specialty Lending from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Oppenheimer set a $13.00 price target on Oaktree Specialty Lending in a research report on Wednesday. Finally, Wells Fargo & Company lowered their price target on Oaktree Specialty Lending from $13.00 to $12.00 and set an "equal weight" rating for the company in a research report on Thursday, February 5th.

Insider Activity at Oaktree Specialty Lending

In related news, Director Phyllis R. Caldwell bought 2,500 shares of the company's stock in a transaction dated Monday, March 16th. The stock was purchased at an average cost of $10.77 per share, with a total value of $26,925.00. Following the transaction, the director owned 23,500 shares in the company, valued at approximately $253,095. This trade represents a 11.90% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.29% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Stonegate Investment Group LLC raised its position in shares of Oaktree Specialty Lending by 5.6% in the 3rd quarter. Stonegate Investment Group LLC now owns 15,171 shares of the credit services provider's stock worth $198,000 after acquiring an additional 800 shares in the last quarter. Cornerstone Advisory LLC raised its position in shares of Oaktree Specialty Lending by 2.0% in the 1st quarter. Cornerstone Advisory LLC now owns 43,702 shares of the credit services provider's stock worth $494,000 after acquiring an additional 844 shares in the last quarter. Running Point Capital Advisors LLC raised its position in shares of Oaktree Specialty Lending by 3.1% in the 4th quarter. Running Point Capital Advisors LLC now owns 28,789 shares of the credit services provider's stock worth $367,000 after acquiring an additional 877 shares in the last quarter. Close Asset Management Ltd raised its position in shares of Oaktree Specialty Lending by 19.4% in the 3rd quarter. Close Asset Management Ltd now owns 7,400 shares of the credit services provider's stock worth $97,000 after acquiring an additional 1,200 shares in the last quarter. Finally, SG Americas Securities LLC raised its position in shares of Oaktree Specialty Lending by 11.9% in the 3rd quarter. SG Americas Securities LLC now owns 11,940 shares of the credit services provider's stock worth $156,000 after acquiring an additional 1,265 shares in the last quarter. Institutional investors own 36.79% of the company's stock.

Oaktree Specialty Lending Trading Down 0.5%

NASDAQ:OCSL opened at $12.15 on Friday. The company has a fifty day moving average of $11.78 and a 200 day moving average of $12.60. Oaktree Specialty Lending has a 52 week low of $10.63 and a 52 week high of $14.77. The company has a quick ratio of 0.16, a current ratio of 0.17 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $1.07 billion, a P/E ratio of 21.32 and a beta of 0.52.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $0.38 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.02. Oaktree Specialty Lending had a net margin of 16.66% and a return on equity of 9.56%. The company had revenue of $69.74 million during the quarter, compared to analyst estimates of $74.35 million. During the same period in the prior year, the business posted $0.45 EPS. On average, research analysts predict that Oaktree Specialty Lending will post 1.51 earnings per share for the current year.

Oaktree Specialty Lending Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 9.9%. The ex-dividend date of this dividend is Monday, June 15th. Oaktree Specialty Lending's dividend payout ratio (DPR) is currently 280.70%.

About Oaktree Specialty Lending

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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