OFS Capital (NASDAQ:OFS) Stock Price Crosses Below 200 Day Moving Average – Time to Sell?

OFS Capital Corporation (NASDAQ:OFS)’s share price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $7.02 and traded as low as $4.91. OFS Capital shares last traded at $4.94, with a volume of 63,700 shares.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on OFS. Weiss Ratings cut shares of OFS Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday. Capital One Financial set a $7.00 target price on shares of OFS Capital in a report on Tuesday, November 4th. Noble Financial initiated coverage on shares of OFS Capital in a research report on Tuesday, November 4th. They issued a “neutral” rating on the stock. Wall Street Zen raised OFS Capital from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Finally, Loop Capital set a $7.00 price objective on OFS Capital in a research note on Tuesday, November 4th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $7.00.

OFS Capital Price Performance

The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 0.43. The business has a 50-day simple moving average of $4.96 and a 200-day simple moving average of $7.02.

OFS Capital (NASDAQ:OFS) last posted its quarterly earnings data on Thursday, October 30th. The investment management company reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.02). OFS Capital had a return on equity of 8.95% and a net margin of 7.52%.The firm had revenue of $10.55 million for the quarter, compared to the consensus estimate of $9.80 million. As a group, equities analysts predict that OFS Capital Corporation will post 1.17 EPS for the current fiscal year.

OFS Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Friday, December 19th were given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 13.8%. The ex-dividend date of this dividend was Friday, December 19th. OFS Capital’s dividend payout ratio (DPR) is currently 283.33%.

Hedge Funds Weigh In On OFS Capital

Several large investors have recently made changes to their positions in the business. Bank of America Corp DE boosted its stake in OFS Capital by 245.3% during the 4th quarter. Bank of America Corp DE now owns 7,079 shares of the investment management company’s stock valued at $57,000 after purchasing an additional 5,029 shares during the period. Ritholtz Wealth Management acquired a new position in shares of OFS Capital during the second quarter worth approximately $347,000. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in shares of OFS Capital by 5.2% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 63,166 shares of the investment management company’s stock worth $533,000 after buying an additional 3,105 shares during the last quarter. Two Sigma Investments LP boosted its position in shares of OFS Capital by 5.8% in the third quarter. Two Sigma Investments LP now owns 120,908 shares of the investment management company’s stock valued at $930,000 after acquiring an additional 6,636 shares during the period. Finally, International Assets Investment Management LLC grew its stake in shares of OFS Capital by 16.9% in the third quarter. International Assets Investment Management LLC now owns 168,003 shares of the investment management company’s stock worth $1,418,000 after acquiring an additional 24,264 shares during the last quarter. Institutional investors and hedge funds own 10.81% of the company’s stock.

About OFS Capital

OFS Capital Corporation (NASDAQ: OFS) is a business development company (BDC) that provides customized debt and equity financing solutions to U.S. middle-market companies. As an externally managed BDC, OFS Capital focuses on sponsoring capital structures that support growth initiatives, recapitalizations, acquisitions and other strategic transactions. The firm targets companies that demonstrate strong cash flow potential and scalable business models across a range of industries.

The company’s investment portfolio typically includes senior secured loans, unitranche facilities, mezzanine debt and equity co-investments.