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

Key Points

• Oaktree Specialty Lending has a consensus analyst rating of “Hold”, with five analysts currently covering the stock and an average 12-month price target of about $11.83.
• The company reported Q2 earnings of $0.38 per share, beating estimates by $0.02, though revenue of $69.74 million came in below expectations and analysts now expect full-year EPS of 1.5.
• OCSL recently cut its quarterly dividend to $0.30 per share, implying a 10.3% annualized yield, but the payout ratio is high at 210.53%.

Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report) has been given a consensus rating of "Hold" by the five ratings firms that are presently covering the firm, MarketBeat Ratings reports. Five analysts have rated the stock with a hold rating. The average 1 year price target among brokers that have covered the stock in the last year is $11.8333.

Several analysts recently issued reports on OCSL shares. Zacks Research raised shares of Oaktree Specialty Lending from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Weiss Ratings restated a "hold (c-)" rating on shares of Oaktree Specialty Lending in a report on Monday, July 13th. Wall Street Zen lowered shares of Oaktree Specialty Lending from a "hold" rating to a "sell" rating in a research note on Sunday, June 14th. Finally, Oppenheimer set a $13.00 price objective on shares of Oaktree Specialty Lending in a report on Wednesday, May 6th.

Oaktree Specialty Lending Stock Down 1.9%

Shares of NASDAQ:OCSL opened at $11.62 on Friday. The business's 50 day simple moving average is $11.90 and its two-hundred day simple moving average is $12.00. The firm has a market cap of $1.02 billion, a P/E ratio of 20.39 and a beta of 0.49. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.17 and a current ratio of 0.17. Oaktree Specialty Lending has a 52-week low of $10.63 and a 52-week high of $14.50.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $0.38 EPS for the quarter, beating the consensus estimate of $0.36 by $0.02. Oaktree Specialty Lending had a return on equity of 9.56% and a net margin of 16.66%.The firm had revenue of $69.74 million during the quarter, compared to the consensus estimate of $74.35 million. During the same quarter in the previous year, the company posted $0.45 earnings per share. As a group, research analysts forecast that Oaktree Specialty Lending will post 1.5 EPS for the current fiscal year.

Oaktree Specialty Lending Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a dividend of $0.30 per share. The ex-dividend date was Monday, June 15th. This represents a $1.20 dividend on an annualized basis and a yield of 10.3%. Oaktree Specialty Lending's payout ratio is 210.53%.

Institutional Trading of Oaktree Specialty Lending

Several institutional investors and hedge funds have recently modified their holdings of OCSL. Garner Asset Management Corp purchased a new position in shares of Oaktree Specialty Lending during the fourth quarter valued at approximately $38,000. International Assets Investment Management LLC raised its position in Oaktree Specialty Lending by 118.3% in 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 buying an additional 1,707 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in Oaktree Specialty Lending during the 4th quarter valued at $42,000. Fifth Third Bancorp purchased a new position in Oaktree Specialty Lending during the 1st quarter worth $41,000. Finally, Tower Research Capital LLC TRC boosted its holdings in Oaktree Specialty Lending by 1,025.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,163 shares of the credit services provider's stock worth $57,000 after acquiring an additional 3,793 shares during the last quarter. 36.79% of the stock is owned by hedge funds and other institutional investors.

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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