OFS Capital (NASDAQ:OFS) Stock Passes Below Two Hundred Day Moving Average – Time to Sell?

OFS Capital Corporation (NASDAQ:OFS) shares passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $6.80 and traded as low as $5.01. OFS Capital shares last traded at $5.08, with a volume of 30,944 shares traded.

Analysts Set New Price Targets

Several brokerages have recently issued reports on OFS. Wall Street Zen raised shares of OFS Capital from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Capital One Financial set a $7.00 target price on OFS Capital in a research note on Tuesday, November 4th. Weiss Ratings downgraded OFS Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, January 7th. Noble Financial assumed coverage on OFS Capital in a report on Tuesday, November 4th. They set a “neutral” rating on the stock. Finally, Loop Capital set a $7.00 price objective on OFS Capital in a research report on Tuesday, November 4th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $7.00.

OFS Capital Stock Performance

The company has a 50 day simple moving average of $4.92 and a 200-day simple moving average of $6.80. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.43.

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

OFS Capital Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Friday, December 19th were paid a $0.17 dividend. The ex-dividend date was Friday, December 19th. This represents a $0.68 annualized dividend and a yield of 13.4%. OFS Capital’s payout ratio is presently 283.33%.

Institutional Trading of OFS Capital

Hedge funds and other institutional investors have recently made changes to their positions in the business. Connor Clark & Lunn Investment Management Ltd. lifted its position in shares of OFS Capital by 5.2% in 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 purchasing an additional 3,105 shares in the last quarter. Bank of America Corp DE increased its stake in OFS Capital by 245.3% in 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 buying an additional 5,029 shares during the last quarter. Two Sigma Investments LP lifted its position in OFS Capital by 5.8% during the 3rd quarter. Two Sigma Investments LP now owns 120,908 shares of the investment management company’s stock worth $930,000 after buying an additional 6,636 shares in the last quarter. International Assets Investment Management LLC lifted its position in OFS Capital by 16.9% during the 3rd quarter. International Assets Investment Management LLC now owns 168,003 shares of the investment management company’s stock worth $1,418,000 after buying an additional 24,264 shares in the last quarter. Finally, Ritholtz Wealth Management acquired a new position in shares of OFS Capital during the 2nd quarter worth about $347,000. 10.81% of the stock is currently owned by institutional investors and hedge funds.

OFS Capital Company Profile

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.