Oaktree Specialty Lending (NASDAQ:OCSL) Stock Price Breaks Above 200 Day Moving Average – Here’s Why

Oaktree Specialty Lending Corp. (NASDAQ:OCSL)’s stock price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $12.08 and traded as high as $12.13. Oaktree Specialty Lending shares last traded at $12.13, with a volume of 378,854 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on OCSL. B. Riley Financial reaffirmed a “neutral” rating on shares of Oaktree Specialty Lending in a research note on Friday, August 7th. Weiss Ratings cut shares of Oaktree Specialty Lending from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, October 8th. Citigroup initiated coverage on shares of Oaktree Specialty Lending in a research note on Monday. They issued a “market perform” rating for the company. Citizens Jmp started coverage on shares of Oaktree Specialty Lending in a report on Monday. They issued a “market perform” rating for the company. Finally, Wall Street Zen raised Oaktree Specialty Lending from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. Seven investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Oaktree Specialty Lending currently has a consensus rating of “Reduce” and an average target price of $11.83.

Oaktree Specialty Lending Stock Performance

The firm has a market capitalization of $1.07 billion, a P/E ratio of 25.27 and a beta of 0.51. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 0.68. The business’s 50 day simple moving average is $12.24 and its two-hundred day simple moving average is $12.08.

Oaktree Specialty Lending (NASDAQ:OCSL) last issued its earnings results on Tuesday, August 4th. The credit services provider reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01. The business had revenue of $69.15 million during the quarter, compared to analysts’ expectations of $69.40 million. Oaktree Specialty Lending had a net margin of 14.45% and a return on equity of 9.70%. Sell-side analysts anticipate that Oaktree Specialty Lending Corp. will post 1.51 EPS for the current fiscal year.

Oaktree Specialty Lending Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were given a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 1.0%. This is a decrease from Oaktree Specialty Lending’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Tuesday, September 15th. Oaktree Specialty Lending’s payout ratio is 250.00%.

Hedge Funds Weigh In On Oaktree Specialty Lending

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OCSL. International Assets Investment Management LLC boosted its stake in Oaktree Specialty Lending by 118.3% during 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 purchasing an additional 1,707 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Oaktree Specialty Lending in the 2nd quarter worth $40,000. Fifth Third Bancorp bought a new stake in shares of Oaktree Specialty Lending in the 1st quarter worth $41,000. Allworth Financial LP purchased a new position in shares of Oaktree Specialty Lending in the second quarter worth $41,000. Finally, TrinityBridge Ltd purchased a new position in shares of Oaktree Specialty Lending in the second quarter worth $88,000. 36.79% of the stock is owned by institutional investors.

Oaktree Specialty Lending Company Profile

Oaktree Specialty Lending Corporation (NASDAQ: OCSL) is a business development company that provides financing to middle-market companies. The company primarily invests in privately held businesses through senior secured loans, including first-lien and unitranche loans, and may also make subordinated debt and equity investments.

OCSL seeks to generate current income and, to a lesser extent, capital appreciation by partnering with companies across a range of industries. Its investments generally support acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

The company is externally managed by Oaktree Capital Management, a global investment management firm.