Oaktree Specialty Lending (NASDAQ:OCSL) Stock Price Passes Above 200-Day Moving Average - What's Next?

Key Points

• Oaktree Specialty Lending (NASDAQ: OCSL) crossed above its 200-day moving average, trading as high as $12.45 and last changing hands near $12.43. This technical move may signal improving near-term momentum for the stock.
• Analyst sentiment is mixed but generally cautious: several firms rate the stock a Hold, while one recently downgraded it to Sell. MarketBeat says the average analyst target price is $11.83, slightly below the current share price.
• The company recently reported quarterly EPS of $0.38, beating estimates, and paid a $0.30 quarterly dividend that annualizes to a 9.7% yield. However, the dividend payout ratio is high at 210.53%, which could raise sustainability concerns.

Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $12.03 and traded as high as $12.45. Oaktree Specialty Lending shares last traded at $12.43, with a volume of 410,214 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on OCSL. Zacks Research raised 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 research report on Monday. Wall Street Zen downgraded shares of Oaktree Specialty Lending from a "hold" rating to a "sell" rating in a research report on Sunday, June 14th. Finally, Oppenheimer set a $13.00 price objective on Oaktree Specialty Lending in a research note on Wednesday, May 6th. Five investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $11.83.

Oaktree Specialty Lending Stock Performance

The company has a fifty day moving average price of $11.92 and a two-hundred day moving average price of $12.03. The firm has a market cap of $1.09 billion, a price-to-earnings ratio of 21.81 and a beta of 0.49. The company has a debt-to-equity ratio of 0.68, a current ratio of 0.17 and a quick ratio of 0.17.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last released its earnings results on Tuesday, May 5th. The credit services provider reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $74.35 million. During the same period in the previous year, the company earned $0.45 earnings per share. As a group, equities research analysts expect that Oaktree Specialty Lending Corp. will post 1.5 EPS for the current year.

Oaktree Specialty Lending Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 9.7%. The ex-dividend date was Monday, June 15th. Oaktree Specialty Lending's payout ratio is presently 210.53%.

Institutional Trading of Oaktree Specialty Lending

A number of large investors have recently added to or reduced their stakes in OCSL. Garner Asset Management Corp acquired a new position in Oaktree Specialty Lending in the fourth quarter worth approximately $38,000. International Assets Investment Management LLC lifted its holdings in shares of Oaktree Specialty Lending by 118.3% during the first quarter. International Assets Investment Management LLC now owns 3,150 shares of the credit services provider's stock valued at $35,000 after purchasing an additional 1,707 shares during the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in Oaktree Specialty Lending during the fourth quarter valued at about $42,000. Fifth Third Bancorp purchased a new stake in shares of Oaktree Specialty Lending in the 1st quarter valued at approximately $41,000. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Oaktree Specialty Lending by 1,025.1% in the second quarter. Tower Research Capital LLC TRC now owns 4,163 shares of the credit services provider's stock valued at $57,000 after purchasing an additional 3,793 shares in the last quarter. 36.79% of the stock is currently owned by institutional investors.

Oaktree Specialty Lending Company Profile

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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