Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both holding significant stakes in OFS Credit Company, Inc. (NASDAQ:OCCI), have recently sold shares in the company. The transactions, which took place on September 11 and September 13, 2024, involved the sale of OFS Credit Company's 6.125% Series C Term Preferred Stock due 2026 at a price of $24.46 per share.
The two entities, which are connected through their management of private investment funds, sold a total of 651 shares, resulting in aggregate proceeds of $15,923. Following these sales, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC continue to hold a sizable number of shares in OFS Credit Company, Inc.
The nature of the ownership, as indicated in the footnotes of the filing, suggests that the shares are held indirectly by investment funds managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC serving as the general partner for the applicable funds. Both entities have disclaimed beneficial ownership of the reported securities, as per the rules under the Securities Exchange Act of 1934.
Investors keeping track of insider transactions may find this sale of interest as it reflects the entities' portfolio adjustments involving OFS Credit Company's preferred stock. These transactions are part of the ongoing financial activities that entities engage in as they manage their investment portfolios.
InvestingPro Insights
OFS Credit Company, Inc. (NASDAQ:OCCI) has demonstrated a commitment to shareholder returns, as evidenced by its significant dividend yield, which stands at an impressive 18.21%. This level of dividend yield is particularly noteworthy for income-focused investors and suggests that OCCI prioritizes returning value to its shareholders. This is further supported by the fact that the company's liquid assets surpass its short-term obligations, indicating a solid liquidity position that can support its dividend payments.
From a valuation perspective, OCCI's market capitalization is currently $123.73 million. With a price-to-earnings (P/E) ratio of 13.91, the company presents a picture of earnings relative to its share price that may appeal to value investors. However, it's worth noting that the valuation implies a poor free cash flow yield, which could be a point of consideration for those evaluating the company's cash generation efficiency relative to its market value.
Investors tracking the company's performance will find that OCCI is trading near its 52-week high, with the price hovering at 97.82% of this peak. This could signal market optimism about the company's prospects or reflect the positive sentiment following recent performance. With a record of profitability over the last twelve months, as indicated by the basic and diluted earnings per share (EPS) of $0.55, OCCI has proven its ability to generate earnings, which is a fundamental aspect for investor confidence.
For those interested in further insights, InvestingPro offers additional tips on OFS Credit Company, Inc. Investors can explore these tips to gain a more comprehensive understanding of the company's financial health and market position by visiting https://www.investing.com/pro/OCCI.
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