Oaktree Specialty Lending (NASDAQ:OCSL) Hits New 12-Month Low - What's Next?

Key Points

• Oaktree Specialty Lending's stock hit a new 52-week low at $12.50 on Thursday, closing slightly higher at $12.54 with a trading volume of 114,200 shares.
• Recent earnings reports showed Oaktree Specialty Lending missed consensus estimates, reporting $0.37 EPS against an expected $0.45, leading to a deterioration in analyst outlook.
• The company has a high dividend payout ratio of 285.71%, with a quarterly dividend of $0.40 yielding 12.7%, sparking interest from institutional investors who now hold 36.79% of its stock.

Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report)'s stock price hit a new 52-week low on Thursday . The company traded as low as $12.50 and last traded at $12.54, with a volume of 114200 shares traded. The stock had previously closed at $12.65.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Weiss Ratings reissued a "hold (c-)" rating on shares of Oaktree Specialty Lending in a research report on Wednesday. Zacks Research downgraded Oaktree Specialty Lending from a "hold" rating to a "strong sell" rating in a research note on Thursday, September 25th. Eight investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $15.00.

Oaktree Specialty Lending Stock Down 0.7%

The business has a 50-day moving average price of $13.45 and a 200 day moving average price of $13.93. The stock has a market capitalization of $1.11 billion, a P/E ratio of 22.43 and a beta of 0.66. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.63.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The credit services provider reported $0.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.08). The firm had revenue of $75.27 million during the quarter, compared to the consensus estimate of $79.14 million. Oaktree Specialty Lending had a return on equity of 10.94% and a net margin of 13.84%.During the same period in the previous year, the business earned $0.55 EPS. On average, equities analysts expect that Oaktree Specialty Lending Corp. will post 2.06 EPS for the current fiscal year.

Oaktree Specialty Lending Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were paid a $0.40 dividend. The ex-dividend date was Monday, September 15th. This represents a $1.60 dividend on an annualized basis and a yield of 12.7%. Oaktree Specialty Lending's dividend payout ratio (DPR) is presently 285.71%.

Institutional Trading of Oaktree Specialty Lending

Hedge funds and other institutional investors have recently bought and sold shares of the business. National Bank of Canada FI increased its stake in Oaktree Specialty Lending by 259.0% in the first quarter. National Bank of Canada FI now owns 1,691 shares of the credit services provider's stock worth $26,000 after purchasing an additional 1,220 shares during the period. SVB Wealth LLC bought a new position in Oaktree Specialty Lending in the first quarter worth approximately $26,000. MTM Investment Management LLC purchased a new position in Oaktree Specialty Lending during the 2nd quarter worth $34,000. Abound Wealth Management purchased a new position in Oaktree Specialty Lending during the 2nd quarter worth $35,000. Finally, Nomura Asset Management Co. Ltd. purchased a new stake in shares of Oaktree Specialty Lending in the 2nd quarter worth $46,000. Hedge funds and other institutional investors own 36.79% of the company's stock.

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.

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