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

OFS Capital Corporation (NASDAQ:OFS) passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $4.15 and traded as low as $3.60. OFS Capital shares last traded at $3.79, with a volume of 47,908 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages recently commented on OFS. Weiss Ratings reiterated a “sell (d)” rating on shares of OFS Capital in a research report on Thursday, June 4th. Wall Street Zen upgraded OFS Capital from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, OFS Capital presently has an average rating of “Reduce” and an average target price of $7.00.

OFS Capital Price Performance

The company has a market capitalization of $50.79 million, a price-to-earnings ratio of -1.36 and a beta of 0.86. The stock has a fifty day simple moving average of $3.67 and a 200-day simple moving average of $4.15. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.04 and a quick ratio of 0.04.

OFS Capital (NASDAQ:OFS) last announced its quarterly 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 $2.56 million during the quarter, compared to analyst estimates of $9.45 million.

OFS Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 6th. Stockholders of record on Friday, June 19th will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 17.9%. The ex-dividend date of this dividend is Thursday, June 18th. OFS Capital’s dividend payout ratio is presently -24.37%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Royal Bank of Canada raised its stake in shares of OFS Capital by 53.3% during the 4th quarter. Royal Bank of Canada now owns 11,500 shares of the investment management company’s stock worth $55,000 after buying an additional 4,000 shares during the period. Bank of America Corp DE raised 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 purchasing an additional 5,029 shares during the last quarter. Two Sigma Investments LP raised its stake in OFS Capital by 5.8% in the 3rd quarter. Two Sigma Investments LP now owns 120,908 shares of the investment management company’s stock valued at $930,000 after purchasing an additional 6,636 shares during the last quarter. Jane Street Group LLC acquired a new position in OFS Capital in the 4th quarter valued at $66,000. Finally, Virtus Investment Advisers LLC raised its stake in OFS Capital by 24.0% in the 4th quarter. Virtus Investment Advisers LLC now owns 82,221 shares of the investment management company’s stock valued at $391,000 after purchasing an additional 15,935 shares during the last quarter. 10.81% of the stock is owned by institutional investors and hedge funds.

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.