Oaktree Specialty Lending (NASDAQ:OCSL) Stock Price Down 5.9% – Should You Sell?

Oaktree Specialty Lending Corp. (NASDAQ:OCSL)’s share price dropped 5.9% during mid-day trading on Tuesday . The company traded as low as $12.12 and last traded at $12.1390. Approximately 296,611 shares were traded during trading, a decline of 67% from the average daily volume of 897,870 shares. The stock had previously closed at $12.90.

Analyst Ratings Changes

Several brokerages have weighed in on OCSL. JPMorgan Chase & Co. lowered their target price on shares of Oaktree Specialty Lending from $13.50 to $10.50 and set a “neutral” rating on the stock in a research report on Friday, March 13th. Weiss Ratings raised shares of Oaktree Specialty Lending from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, April 15th. Zacks Research raised shares of Oaktree Specialty Lending from a “strong sell” rating to a “hold” rating in a report on Monday, April 6th. Wells Fargo & Company reduced their price target on shares of Oaktree Specialty Lending from $13.00 to $12.00 and set an “equal weight” rating on the stock in a report on Thursday, February 5th. Finally, Wall Street Zen raised shares of Oaktree Specialty Lending from a “sell” rating to a “hold” rating in a research note on Saturday, April 11th. Six analysts have rated the stock with a Hold rating, According to MarketBeat, Oaktree Specialty Lending currently has an average rating of “Hold” and an average target price of $12.38.

Oaktree Specialty Lending Stock Performance

The stock’s fifty day moving average is $11.78 and its two-hundred day moving average is $12.60. The firm has a market capitalization of $1.08 billion, a price-to-earnings ratio of 21.42 and a beta of 0.52. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.16 and a current ratio of 0.16.

Oaktree Specialty Lending (NASDAQ:OCSL) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02. The business had revenue of $69.74 million during the quarter, compared to analyst estimates of $74.35 million. Oaktree Specialty Lending had a net margin of 16.66% and a return on equity of 9.43%. During the same period last year, the business earned $0.45 EPS. Analysts forecast that Oaktree Specialty Lending Corp. will post 1.49 earnings per share for the current year.

Oaktree Specialty Lending Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 9.8%. The ex-dividend date of this dividend is Monday, June 15th. Oaktree Specialty Lending’s dividend payout ratio (DPR) is currently 444.44%.

Insider Activity at Oaktree Specialty Lending

In other Oaktree Specialty Lending news, Director Phyllis R. Caldwell purchased 2,500 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was acquired at an average cost of $10.77 per share, with a total value of $26,925.00. Following the acquisition, the director owned 23,500 shares of the company’s stock, valued at approximately $253,095. This represents a 11.90% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.29% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Bruni J V & Co. Co. boosted its holdings in shares of Oaktree Specialty Lending by 12.4% in the 3rd quarter. Bruni J V & Co. Co. now owns 2,487,019 shares of the credit services provider’s stock valued at $32,456,000 after buying an additional 274,667 shares during the period. Private Management Group Inc. lifted its position in Oaktree Specialty Lending by 25.2% in the 3rd quarter. Private Management Group Inc. now owns 3,014,163 shares of the credit services provider’s stock valued at $39,335,000 after purchasing an additional 607,493 shares during the last quarter. HighTower Advisors LLC lifted its position in Oaktree Specialty Lending by 102.6% in the 3rd quarter. HighTower Advisors LLC now owns 267,909 shares of the credit services provider’s stock valued at $3,496,000 after purchasing an additional 135,662 shares during the last quarter. Van ECK Associates Corp lifted its position in Oaktree Specialty Lending by 6.6% in the 3rd quarter. Van ECK Associates Corp now owns 2,173,257 shares of the credit services provider’s stock valued at $28,361,000 after purchasing an additional 134,557 shares during the last quarter. Finally, Melia Wealth LLC lifted its position in Oaktree Specialty Lending by 22.8% in the 3rd quarter. Melia Wealth LLC now owns 1,215,842 shares of the credit services provider’s stock valued at $15,867,000 after purchasing an additional 225,384 shares during the last quarter. 36.79% of the stock is owned by institutional investors and hedge funds.

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.