Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, entities associated with investment funds, have recently sold shares in OFS Credit Company, Inc. (NASDAQ:OCCI), a move observed by investors tracking insider transactions. The sales, which took place on July 9, 2024, amounted to a total value exceeding $25,000.
The transactions involved two types of non-derivative securities. Eagle Point Credit Management LLC offloaded 926 shares of 6.125% Series C Term Preferred Stock due 2026 at a weighted average price of $24.25 per share. Additionally, 129 shares of 5.25% Series E Term Preferred Stock due 2026 were sold at an average price of $23.30 per share. The sales occurred in a price range between $23.3 and $24.25.
Following these transactions, the entities continue to indirectly hold a significant number of shares: 22,877 shares of the Series C Term Preferred Stock and 32,482 shares of the Series E Term Preferred Stock. It is important to note that the entities have disclaimed beneficial ownership of these securities, as indicated in the footnotes of the SEC filing.
These transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, signed by Kenneth P. Onorio, the Chief Financial Officer of both Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC. The filing provides transparency into the trading activities of company insiders and entities with significant ownership stakes.
Investors often monitor such insider transactions as they can provide insights into the perspectives of those with in-depth knowledge of the company. However, it is essential to consider a broader range of factors when evaluating the investment potential of a company's stock.
In other recent news, OFS Credit Company, Inc. disclosed an estimated net asset value (NAV) per share for the end of March 2024. According to management's unaudited figures, the NAV per share of common stock is projected to lie between $7.42 and $7.52. This preliminary estimate has not undergone the usual quarter-end financial closing procedures, and the company emphasized that the actual NAV per share could significantly differ from the current estimate. The company also noted that its NAV and financial position could be influenced by numerous factors such as heightened interest and inflation rates, geopolitical tensions, and uncertainties within the U.S. and global banking systems. Risks such as a potential U.S. recession, government service shutdown, and associated market volatility could also materially impact the company's future net investment income and the value of its investment portfolio. The preliminary financial data presented is the responsibility of OFS Credit's management and has not been audited or reviewed by KPMG LLP. These are the recent developments concerning OFS Credit Company.
InvestingPro Insights
Amid the recent insider transactions at OFS Credit Company, Inc. (NASDAQ:OCCI), investors seeking a deeper understanding of the company's financial health and market position may find the following data and insights from InvestingPro invaluable. OFS Credit Company's market capitalization stands at a modest $119.85 million, reflecting its size in the financial sector. This is complemented by a Price-to-Earnings (P/E) ratio of 13.47, which suggests that the company's earnings are reasonably priced relative to its share value.
InvestingPro data shows OFS Credit Company has experienced a steady revenue growth, with a 14.19% increase over the last twelve months as of Q2 2024. Such growth is indicative of the company's ability to expand its financial operations effectively. Additionally, the company boasts a remarkably high gross profit margin of 100% for the same period, emphasizing its efficiency in generating income relative to its revenue.
For investors attracted to dividend-paying stocks, OFS Credit Company offers a substantial dividend yield of 17.0%, which is particularly notable for income-focused portfolios. This robust dividend yield is supported by the fact that OFS Credit Company has been profitable over the last twelve months. Moreover, an InvestingPro Tip highlights that the company's stock generally trades with low price volatility, potentially offering a more stable investment option within the sector.
Investors interested in further insights will find additional InvestingPro Tips, including a detailed analysis of the company's free cash flow yield and liquidity position. In total, there are 5 more InvestingPro Tips available, which can be accessed through InvestingPro's dedicated page for OFS Credit Company at https://www.investing.com/pro/OCCI. For those looking to delve deeper into these metrics, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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