Oaktree Specialty Lending (NASDAQ:OCSL) Announces Earnings Results

Key Points

• Oaktree Specialty Lending reported quarterly earnings of $0.37 EPS, missing analysts' expectations of $0.45 EPS by $0.08.
• The company's stock traded down to $13.30, marking a decrease amid average trading volume of 976,172 shares.
• Insider Armen Panossian purchased 8,000 shares at $14.13 each, increasing his holdings by over 62% to a total of 20,789 shares.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) announced its quarterly earnings results on Tuesday. The credit services provider reported $0.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.08), Zacks reports. Oaktree Specialty Lending had a net margin of 13.84% and a return on equity of 10.94%. The firm had revenue of $75.27 million for the quarter, compared to the consensus estimate of $79.14 million. During the same period in the prior year, the business earned $0.55 earnings per share.

Oaktree Specialty Lending Trading Up 0.8%

Shares of NASDAQ:OCSL traded up $0.11 during trading on Friday, hitting $13.40. 648,111 shares of the company's stock were exchanged, compared to its average volume of 627,593. Oaktree Specialty Lending has a 1-year low of $12.50 and a 1-year high of $17.16. The firm has a 50-day moving average price of $14.02 and a two-hundred day moving average price of $14.64. The company has a current ratio of 0.21, a quick ratio of 0.23 and a debt-to-equity ratio of 0.63. The firm has a market cap of $1.18 billion, a P/E ratio of 23.93 and a beta of 0.69.

Oaktree Specialty Lending Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be given a dividend of $0.40 per share. The ex-dividend date is Monday, September 15th. This represents a $1.60 annualized dividend and a dividend yield of 11.9%. Oaktree Specialty Lending's payout ratio is currently 285.71%.

Insider Activity at Oaktree Specialty Lending

In other news, insider Armen Panossian acquired 8,000 shares of the firm's stock in a transaction that occurred on Thursday, May 15th. The stock was purchased at an average price of $14.13 per share, for a total transaction of $113,040.00. Following the completion of the acquisition, the insider owned 20,789 shares in the company, valued at $293,748.57. This trade represents a 62.55% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.28% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Oaktree Specialty Lending stock. Royal Bank of Canada raised its stake in Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Free Report) by 34.3% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 468,879 shares of the credit services provider's stock after buying an additional 119,775 shares during the quarter. Royal Bank of Canada owned about 0.53% of Oaktree Specialty Lending worth $7,201,000 at the end of the most recent reporting period. 36.79% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Wall Street Zen cut shares of Oaktree Specialty Lending from a "hold" rating to a "sell" rating in a research report on Monday, May 5th. B. Riley assumed coverage on shares of Oaktree Specialty Lending in a research report on Tuesday, May 13th. They issued a "neutral" rating and a $14.00 price objective for the company. JPMorgan Chase & Co. lowered their price objective on shares of Oaktree Specialty Lending from $15.00 to $14.00 and set a "neutral" rating for the company in a research report on Thursday, April 24th. Finally, Wells Fargo & Company lowered their price objective on shares of Oaktree Specialty Lending from $15.00 to $14.00 and set an "equal weight" rating for the company in a research report on Monday, April 28th. One analyst has rated the stock with a sell rating and seven have issued a hold rating to the company's stock. Based on data from MarketBeat.com, Oaktree Specialty Lending presently has a consensus rating of "Hold" and a consensus price target of $15.00.

About Oaktree Specialty Lending

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.