Executives at Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant shareholders in OFS Credit Company, Inc. (NASDAQ:OCCI), have sold a total of $49,320 worth of the company's 6.125% Series C Term Preferred Stock due 2026. The sales occurred over three separate transactions on the 20th, 21st, and 24th of June, 2024, with prices ranging from $24.20 to $24.24 per share.
The first transaction on June 20 involved the sale of 11 shares at $24.24 each, followed by a larger sale of 2,000 shares at $24.20 per share on June 21. The final transaction on June 24 saw the sale of another 27 shares at $24.23 per share. Following these transactions, the executives still indirectly hold a significant number of shares.
These sales were conducted indirectly through private investment funds managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC serving as the general partner for certain funds. According to the footnotes in the SEC filing, both managing entities could be deemed to have an "indirect pecuniary interest" in the securities reported. However, they have both disclaimed beneficial ownership of the reported securities, clarifying that the inclusion of these securities in the report is not an admission of beneficial ownership for any legal purposes.
The executives' remaining indirect holdings post-transaction were not disclosed for the Series C Term Preferred Stock, but they still hold 33,103 shares of the 5.25% Series E Term Preferred Stock due 2026.
The SEC filing was signed by Kenneth P. Onorio, the Chief Financial Officer for both Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, on June 24, 2024. The reported transactions provide current and potential investors with insight into the trading activities of significant shareholders within OFS Credit Company, Inc.
In other recent news, OFS Credit Company, an investment firm specializing in collateralized loan obligation equity and debt securities, has released an estimated net asset value (NAV) per share for the end of March 2024. Based on unaudited figures provided by the company's management, the NAV per share of common stock is expected to fall between $7.42 and $7.52. However, the company has cautioned that these preliminary estimates have not undergone typical quarter-end financial closing procedures and the actual NAV per share could significantly differ.
The company also highlighted that its financial position could be influenced by various external factors, including potential effects of heightened interest and inflation rates, geopolitical tensions, and uncertainties within U.S. and global banking systems. Risks associated with a U.S. recession, government service shutdown, and market volatility could also impact the company's future net investment income and portfolio value.
The preliminary financial data is the responsibility of OFS Credit's management and has not been audited or reviewed by KPMG LLP. These are the recent developments concerning the company's financial position.
InvestingPro Insights
In light of the recent transactions involving significant shareholders of OFS Credit Company, Inc. (NASDAQ:OCCI), current and prospective investors may find additional context in the company's financial health and market performance. OFS Credit Company, Inc. has demonstrated a stable financial profile, as evidenced by a market capitalization of approximately $117.06 million and a price-to-earnings (P/E) ratio of 13.35, suggesting a reasonable valuation relative to its earnings.
Investors seeking income-generating assets may be particularly interested in OCCI's robust dividend yield, which stands at 17.17%. This substantial yield is supported by the company's solid financial results, including a gross profit margin of 100% over the last twelve months as of Q2 2024. Additionally, the company's revenue growth of 14.19% during the same period reflects a positive trajectory in its operational performance.
For those considering the stock's stability, an InvestingPro Tip notes that OCCI generally trades with low price volatility, which could appeal to risk-averse investors. Furthermore, the company's liquid assets surpass its short-term obligations, indicating a strong liquidity position that could provide reassurance in times of market uncertainty.
To delve deeper into OFS Credit Company, Inc.'s financial metrics and gain access to further InvestingPro Tips, such as the company's valuation implications based on free cash flow yield and profitability status, interested readers can explore the insights available on InvestingPro. There are 5 additional InvestingPro Tips listed, which can provide a comprehensive understanding of the company's investment potential. For those ready to make an informed decision, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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