Executives at Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have reported the sale of preferred stock in OFS Credit Company, Inc. (NASDAQ:OCCI), according to a recent SEC filing. The transactions, which occurred on July 18 and July 22, involved the sale of "6.125% Series C Term Preferred Stock due 2026" at a price of $24.32 per share.
The filings indicate that a total of 659 shares were sold across the two dates, resulting in an aggregate sale value of $16,026. This movement in shares was conducted through indirect ownership, with Eagle Point Credit Management LLC managing private investment funds that directly hold the securities, and Eagle Point DIF GP I LLC acting as the general partner to certain applicable funds.
The shares were sold at a consistent price of $24.32 each, which reflects the price point for both transaction dates. Following these sales, the remaining shares owned indirectly by the reporting entities amount to 21,622 for the Series C Term Preferred Stock.
It should be noted that both reporting entities, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, have disclaimed beneficial ownership of the securities sold, as indicated in the footnotes of the SEC filing. The disclaimer asserts that the inclusion of these securities in the report is not an admission of beneficial ownership for purposes of Section 16 or any other purpose.
The sale of preferred stock by executives or significant shareholders in a company can be an indicator of their view on the stock's future performance, but the reasons behind these transactions can vary widely and are not disclosed in the SEC filings.
Investors often monitor such filings to gain insight into the actions of company insiders, which can include executives, directors, and large shareholders. The transactions reported in SEC Form 4 filings provide transparency into the trading activities of these individuals and entities with respect to the company's equity securities.
InvestingPro Insights
In the context of the recent preferred stock sales by executives at Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, OFS Credit Company, Inc. (NASDAQ:OCCI) presents a mixed financial landscape. According to InvestingPro data, OCCI boasts a market capitalization of $117.26 million and maintains a P/E ratio of 13.24, which may attract investors looking for reasonably priced earnings potential relative to the market.
Investors should note that OCCI's revenue has seen healthy growth in the last twelve months as of Q2 2024, with a 14.19% increase, and a gross profit margin standing at an impressive 100%. These figures suggest that the company has been effective in maintaining its profitability over the recent period.
From the perspective of shareholder returns, OCCI pays a significant dividend, evidenced by a robust dividend yield of 17.36%, as of the most recent data. This could be appealing for income-focused investors. However, it's important to consider the InvestingPro Tip that the valuation implies a poor free cash flow yield, which could be a concern for those looking at the company's ability to sustain its dividend payments or invest in future growth.
For investors seeking further insights, there are additional InvestingPro Tips available, including the fact that OCCI's liquid assets exceed its short-term obligations, which may indicate a strong liquidity position, and that the company has been profitable over the last twelve months. To explore these insights and more, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro. With this subscription, investors can access a total of 4 InvestingPro Tips, shedding more light on OCCI's financial health and investment potential.
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