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

OFS Capital Corporation (NASDAQ:OFS) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $4.28 and traded as low as $3.36. OFS Capital shares last traded at $3.43, with a volume of 50,464 shares trading hands.

Analyst Ratings Changes

Separately, Wall Street Zen upgraded OFS Capital from a “sell” rating to a “hold” rating in a report on Sunday, May 17th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, OFS Capital has an average rating of “Reduce” and a consensus target price of $7.00.

OFS Capital Stock Performance

The company has a market capitalization of $45.96 million, a price-to-earnings ratio of -1.23 and a beta of 0.92. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.04 and a current ratio of 0.04. The company’s fifty day simple moving average is $3.60 and its two-hundred day simple moving average is $4.28.

OFS Capital (NASDAQ:OFS) last issued its earnings results on Thursday, April 30th. The investment management company reported $0.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.03). OFS Capital had a negative net margin of 95.15% and a positive return on equity of 8.74%. The company had revenue of $3.57 million during the quarter, compared to analyst estimates of $9.45 million.

OFS Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 6th. Shareholders of record on Friday, June 19th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 19.8%. The ex-dividend date of this dividend is Thursday, June 18th. OFS Capital’s dividend payout ratio is -24.37%.

Institutional Trading of OFS Capital

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada increased its holdings in shares of OFS Capital by 53.3% in the 4th quarter. Royal Bank of Canada now owns 11,500 shares of the investment management company’s stock worth $55,000 after acquiring an additional 4,000 shares during the period. Bank of America Corp DE raised its stake in shares of 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 worth $57,000 after buying an additional 5,029 shares in the last quarter. Jane Street Group LLC acquired a new stake in OFS Capital in the 4th quarter valued at about $66,000. Squarepoint Ops LLC acquired a new stake in OFS Capital during the fourth quarter valued at approximately $202,000. Finally, Marshall Wace LLP acquired a new stake in shares of OFS Capital during the 4th quarter valued at $377,000. 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.