Oaktree Specialty Lending Corp. (NASDAQ:OCSL) Sees Large Increase in Short Interest

Oaktree Specialty Lending Corp. (NASDAQ:OCSL) was the target of a significant increase in short interest in the month of March. As of March 13th, there was short interest totaling 3,436,257 shares, an increase of 42.0% from the February 26th total of 2,419,269 shares. Based on an average trading volume of 884,462 shares, the days-to-cover ratio is presently 3.9 days. Currently, 3.9% of the shares of the company are short sold.

Oaktree Specialty Lending Price Performance

NASDAQ OCSL traded down $0.20 during mid-day trading on Friday, hitting $10.94. The stock had a trading volume of 593,771 shares, compared to its average volume of 860,544. The company has a 50 day simple moving average of $11.84 and a 200 day simple moving average of $12.78. The company has a market cap of $963.70 million, a price-to-earnings ratio of 30.39 and a beta of 0.52. Oaktree Specialty Lending has a 52-week low of $10.63 and a 52-week high of $15.69. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.66.

Oaktree Specialty Lending (NASDAQ:OCSL) last posted its earnings results on Tuesday, February 3rd. The credit services provider reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.03. Oaktree Specialty Lending had a return on equity of 9.75% and a net margin of 10.58%.The company had revenue of $74.48 million for the quarter, compared to the consensus estimate of $75.72 million. During the same period in the previous year, the business earned $0.54 earnings per share. Equities analysts forecast that Oaktree Specialty Lending will post 2.06 EPS for the current fiscal year.

Oaktree Specialty Lending Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 14.6%. The ex-dividend date of this dividend is Monday, March 16th. Oaktree Specialty Lending’s dividend payout ratio is presently 444.44%.

Insider Transactions at Oaktree Specialty Lending

In other news, Director Phyllis R. Caldwell purchased 2,500 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The stock was purchased at an average cost of $10.77 per share, with a total value of $26,925.00. Following the completion of the acquisition, the director directly owned 23,500 shares of the company’s stock, valued at approximately $253,095. This trade represents a 11.90% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.29% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Oaktree Specialty Lending

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Stonegate Investment Group LLC lifted its holdings in shares of Oaktree Specialty Lending by 5.6% in the third quarter. Stonegate Investment Group LLC now owns 15,171 shares of the credit services provider’s stock valued at $198,000 after purchasing an additional 800 shares in the last quarter. Running Point Capital Advisors LLC raised its position in shares of Oaktree Specialty Lending by 3.1% during the 4th quarter. Running Point Capital Advisors LLC now owns 28,789 shares of the credit services provider’s stock worth $367,000 after purchasing an additional 877 shares during the last quarter. MRP Capital Investments LLC raised its position in shares of Oaktree Specialty Lending by 8.3% during the 2nd quarter. MRP Capital Investments LLC now owns 11,578 shares of the credit services provider’s stock worth $158,000 after purchasing an additional 891 shares during the last quarter. Creative Planning lifted its stake in Oaktree Specialty Lending by 1.9% in the 2nd quarter. Creative Planning now owns 53,128 shares of the credit services provider’s stock valued at $726,000 after buying an additional 996 shares in the last quarter. Finally, Close Asset Management Ltd grew its holdings in Oaktree Specialty Lending by 19.4% during the 3rd quarter. Close Asset Management Ltd now owns 7,400 shares of the credit services provider’s stock valued at $97,000 after buying an additional 1,200 shares during the last quarter. Institutional investors and hedge funds own 36.79% of the company’s stock.

Analyst Upgrades and Downgrades

OCSL has been the topic of several recent analyst reports. Wall Street Zen cut Oaktree Specialty Lending from a “hold” rating to a “sell” rating in a research report on Saturday, March 21st. JPMorgan Chase & Co. decreased their price target on Oaktree Specialty Lending from $13.50 to $10.50 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Wells Fargo & Company dropped their price objective on 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. Lucid Cap Mkts upgraded Oaktree Specialty Lending to a “hold” rating in a research report on Monday, December 15th. Finally, Zacks Research downgraded Oaktree Specialty Lending from a “hold” rating to a “strong sell” rating in a report on Monday, February 9th. Five research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $12.88.

About Oaktree Specialty Lending

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.