OCSL Oaktree Specialty Lending Corp

Stock traders recently acquired an unusually large volume of call options—128,175—on Oaktree Specialty Lending (OCSL), marking a 27,229% increase from the average. This activity comes as institutional investors have adjusted their holdings, and the company announced a quarterly dividend of $0.40, yielding 11.8% with an ex-dividend date of December 15th. OCSL, trading at $13.59 with a market cap of $1.2B, currently holds a consensus "Hold" rating from Wall Street analysts with a target price of $14.25.

Oaktree Specialty Lending (OCSL) faces significant concerns regarding its dividend sustainability due to a high 6.5% cost-based non-accrual ratio and inconsistent dividend coverage, despite an 83% first-lien allocation. With 91% floating-rate exposure and falling net investment income, the company is at high risk of a dividend cut if interest rates decline. Although OCSL trades at an 18% discount to book value, the author rates it a Hold given the elevated risk of further downside if loan quality issues persist.

Wealthedge Investment Advisors LLC has reduced its stake in Oaktree Specialty Lending Corp. (OCSL) by 25.4% in the second quarter, now holding 96,807 shares valued at approximately $1.32 million. Despite this, other institutional investors have increased their positions in the company, which recently reported earnings exceeding analyst expectations. OCSL also declared a quarterly dividend of $0.40, representing an 11.6% yield, though its payout ratio is notably high at 410.26%.

Claret Asset Management Corp increased its stake in Oaktree Specialty Lending Corp. by 11.8%, purchasing an additional 179,563 shares and now holding 1,700,738 shares worth $23.23 million, making OCSL its 10th largest position. Despite beating EPS estimates, analysts rate the stock as "Reduce" with a $14.25 price target, and the company announced a quarterly dividend of $0.40, resulting in an 11.6% yield with an elevated payout ratio of 410.26%. Several other institutional investors also increased their holdings in OCSL during the second quarter.

Private Management Group Inc. increased its stake in Oaktree Specialty Lending Corp. (NASDAQ:OCSL) by 10.1%, now holding 2,406,670 shares valued at approximately $32.9 million. Oaktree Specialty Lending reported adjusted quarterly EPS of $0.40, exceeding expectations, and declared a $0.40 quarterly dividend. Despite institutional investment, analysts maintain a "Reduce" rating with a consensus price target of $14.25.

Oaktree Specialty Lending Corp. (OCSL) reports an increase in private credit deal volume, though quality is mixed, with a rise in lower-quality deals and dividend recapitalizations. CEO Armen Panossian noted a slight improvement in price discipline among lenders, with spreads bottoming out at S+450. OCSL's funded investment commitments rose in Q4, and the company marked up 40% of its portfolio companies, but also moved one first-lien loan to non-accrual status due to operational issues.