Oaktree Specialty Lending (NASDAQ:OCSL) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Oaktree Specialty Lending (NASDAQ:OCSLGet Rating) from a hold rating to a buy rating in a report released on Tuesday, Zacks.com reports. The brokerage currently has $8.25 price objective on the credit services provider’s stock.

According to Zacks, “Oaktree Specialty Lending Corporation is a specialty finance company. It provides customized, one-stop credit solutions to companies with limited access to public or syndicated capital markets. The company generates current income and capital appreciation by providing companies with flexible and innovative financing solutions including first and second lien loans, unsecured and mezzanine loans and preferred equity. Oaktree Specialty Lending Corporation, formerly known as Fifth Street Finance Corp., is based in CA, United States. “

Separately, StockNews.com assumed coverage on shares of Oaktree Specialty Lending in a report on Thursday, March 31st. They issued a hold rating for the company. One equities research analyst has rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of Buy and a consensus target price of $8.08.

OCSL opened at $7.05 on Tuesday. The stock has a market capitalization of $1.29 billion, a price-to-earnings ratio of 9.28, a P/E/G ratio of 0.82 and a beta of 1.31. The company has a quick ratio of 0.09, a current ratio of 0.09 and a debt-to-equity ratio of 0.47. Oaktree Specialty Lending has a twelve month low of $6.53 and a twelve month high of $7.81. The company has a 50-day simple moving average of $7.32 and a 200 day simple moving average of $7.42.

Oaktree Specialty Lending (NASDAQ:OCSLGet Rating) last posted its earnings results on Thursday, May 5th. The credit services provider reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.01. The firm had revenue of $64.30 million during the quarter, compared to analysts’ expectations of $58.95 million. Oaktree Specialty Lending had a net margin of 53.18% and a return on equity of 9.59%. Sell-side analysts anticipate that Oaktree Specialty Lending will post 0.72 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 30th. Stockholders of record on Wednesday, June 15th will be paid a $0.165 dividend. The ex-dividend date of this dividend is Tuesday, June 14th. This represents a $0.66 annualized dividend and a dividend yield of 9.36%. This is an increase from Oaktree Specialty Lending’s previous quarterly dividend of $0.16. Oaktree Specialty Lending’s dividend payout ratio is currently 84.21%.

In other news, Director Phyllis R. Caldwell bought 5,000 shares of the firm’s stock in a transaction on Wednesday, May 11th. The stock was acquired at an average price of $7.04 per share, with a total value of $35,200.00. Following the transaction, the director now owns 7,700 shares of the company’s stock, valued at approximately $54,208. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, President Mathew Pendo bought 18,381 shares of the firm’s stock in a transaction on Monday, May 9th. The shares were purchased at an average cost of $7.06 per share, with a total value of $129,769.86. Following the transaction, the president now directly owns 103,591 shares in the company, valued at approximately $731,352.46. The disclosure for this purchase can be found here. Insiders bought 25,981 shares of company stock valued at $184,262 in the last ninety days. 0.32% of the stock is currently owned by insiders.

A number of large investors have recently added to or reduced their stakes in OCSL. Commonwealth Equity Services LLC increased its position in Oaktree Specialty Lending by 128.0% during the 3rd quarter. Commonwealth Equity Services LLC now owns 36,622 shares of the credit services provider’s stock valued at $258,000 after purchasing an additional 20,557 shares during the period. Cambridge Investment Research Advisors Inc. increased its position in Oaktree Specialty Lending by 4.6% during the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 71,045 shares of the credit services provider’s stock valued at $502,000 after purchasing an additional 3,153 shares during the period. PNC Financial Services Group Inc. acquired a new stake in shares of Oaktree Specialty Lending during the 3rd quarter worth approximately $644,000. Truist Financial Corp grew its position in shares of Oaktree Specialty Lending by 1.7% during the 3rd quarter. Truist Financial Corp now owns 93,873 shares of the credit services provider’s stock worth $662,000 after buying an additional 1,536 shares during the period. Finally, Moors & Cabot Inc. acquired a new stake in shares of Oaktree Specialty Lending during the 3rd quarter worth approximately $27,000. 65.27% of the stock is owned by institutional investors and hedge funds.

About Oaktree Specialty Lending (Get Rating)

Oaktree Specialty Lending Corporation is a business development company 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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