OAK stock: buy or sell?

OAK stock price: $51.59 -1.24% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

5

Oaktree Capital declined -1.24% to $51.59 after topping to all time highs on Aug 22nd. Last session broke a streak of 4 green sessions in a row.

Oaktree Capital Group, LLC operates as a global investment management firm that focuses on alternative markets. It manage investments in a number of strategies within six asset classes, including distressed debt; corporate debt, including high yield debt and senior loans; control investing; convertible securities; real estate; and listed equities.

Should I buy OAK stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups are elegible for Oaktree Capital stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Oaktree Capital stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 2 ratings published for OAK stock in the last 30 days.

Is OAK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-3-14Wells Fargo & Con/aMarket Perform
2019-3-14Morgan StanleyOverweightEqual Weight

OAK stock analysis

Daily outlook

After marking all time highs on August 22nd, Oaktree Capital declined -1.24% yesterday to $51.59.

Oaktree Capital declined -1.24% yesterday to $51.59 after reaching all time highs on August 22nd. From a daily perspective, OAK is in a short term uptrend after plotting its last bottom ($51.00, on Aug/15) higher than the previous bottom, and its last top ($52.38, on August 22nd) also over the previous top. Now trading in between its last bottom and last top OAK might consolidate in a plain range, waiting to break out over $52.38 or down under $51.00. On August 22nd, OAK hit a new all time high, pushing higher than on Wednesday tops. Check different trading setups that use ATHs as triggers. On June OAK price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

OAK stock chart (daily)

Weekly outlook

Despite of closing lower ($51.59, -0.21%), Oaktree Capital touched new all time high at $52.38. This week broke a streak of 4 green weeks.

Weekly chart tells us that price finally broke over the resistance at $50.62 and continued climbing. Late December 2018 OAK price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

OAK stock chart (weekly)

OAK stock price history

OAK stock went public on April 12th, 2012 with a price of $25.741. Since then, OAK stock grew a 100.40%, with an average of 14.30% per year. If you had invested right after OAK's IPO a $1,000 in OAK stock in 2012, it would worth $1,004.00 today.

1: Adjusted price after possible price splits or reverse-splits.

OAK stock historical price chart

OAK stock reached all-time highs on Aug 22nd with a price of $52.38.

OAK stock price target is $44.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. Currently, only 1 price forecast for Oaktree Capital stock was posted in the last month:
OAK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-3-14Wells Fargo & CoReiterates$49.00$44.00-10.2%
(in average)$49.00$44.00-10.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Oaktree Capital reported its latest financial data, posting a slightly fine climb for the Earnings per Share (EPS) ratio. Experts expected $0.41 per share, but Oaktree Capital posted $0.43.
OAK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.83n/a
2017-Q32017-10-260.560.6719.6%
2017-Q42018-02-060.530.7235.8%
2018-Q12018-04-260.70.9332.9%
2018-Q22018-07-260.530.51-3.8%
2018-Q32018-10-250.470.7866.0%
2018-Q42019-02-050.410.434.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a tragic drop down of -5.69% to $1,386.08 M USD. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) remained steady a 0.37% to 16.12%.

OAK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,700 M-$222 M6.0%-
2014$194 M-94.76%$126 M65.1%-43.12%
2015$202 M4.13%$71 M35.3%-43.50%
2016$1,126 M457.56%$195 M17.3%172.89%
2017$1,470 M30.56%$231 M15.8%18.89%
2018$1,386 M-5.69%$223 M16.1%-3.49%

Quarterly financial results

Oaktree Capital posted $594.25 million in revenues for 2018-Q4, a 146.34% improvement compared to previous quarter. Reported quarter income marked $82.91 M with a profit margin of 13.95%. Profit margin slipped a -9.54% compared to previous quarter when profit margin was 23.49%. When comparing revenues to same quarter last year, Oaktree Capital sales marked an astounding increase and climbed a 91.02%. Looking back to recent quarterly results, Oaktree Capital posted 2 negative quarters in a row.
OAK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$620 M-$117 M18.9%-
2017-Q3$235 M-62.10%$46 M19.5%-60.93%
2017-Q4$311 M32.45%$13 M4.3%-70.74%
2018-Q1$337 M8.43%$53 M15.6%293.11%
2018-Q2$213 M-36.77%$31 M14.6%-40.98%
2018-Q3$241 M13.10%$57 M23.5%82.06%
2018-Q4$594 M146.34%$83 M14.0%46.32%
2019-Q1$266 M-55.17%$54 M20.3%-34.77%

Oaktree Capital ownership

When you are planning to invest in shares of a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Oaktree Capital, 1.34% of all outstanding shares are owned by its staff.

In case of Oaktree Capital stock, 68.31% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for OAK stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

OAKABAMGAPOBLK
Market cap$3.7 B$2.7 B$3.8 B$7.2 B$62.9 B
Total shares71.2 M97.9 M50.6 M200.4 M154.5 M
Float shares73.4 M92.0 M50.1 M143.6 M118.4 M
  - Institutional holdings (%)68.3%18.7%100.6%74.1%83.5%
  - Insider holdings (%)1.3%4.8%0.9%2.3%3.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

OAK summary

Friday, August 23rd, 2019
Open$52.07
Close$51.59
Day range$51.52 - $52.25
Previous close$52.24
Session gain-1.24%
Average true range$0.53
50d mov avg$50.44
100d mov avg$49.75
200d mov avg$45.45
Daily patternlt06a
Weekly pattern lb01c

Oaktree Capital performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Oaktree Capital to AllianceBernstein, Affiliated Managers, Apollo Global Management, BlackRock, The Carlyle, Gamco Investors and Invesco:
Stock3m6m12m
OAKOaktree Capital5.96%22.40%32.05%
ABAllianceBernstein-1.07%-3.18%-0.50%
AMGAffiliated Manage...-15.23%-31.09%-48.75%
APOApollo Global Man...14.18%26.33%9.97%
BLKBlackRock-5.83%-5.32%-12.16%
CGThe Carlyle10.54%24.34%-1.70%
GBLGamco Investors-3.67%-14.59%-30.99%
IVZInvesco-22.02%-15.15%-31.01%

Oaktree Capital competitors

One check before investing in any stock is to review a list of its competitors, in this case for Oaktree Capital. We picked 7 companies as Oaktree Capital competitors as they are in the same industry or have similar market objectives.