OFS Capital (NASDAQ:OFS) Stock Price Passes Below Two Hundred Day Moving Average – Should You Sell?

OFS Capital Corporation (NASDAQ:OFS) passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $3.93 and traded as low as $3.66. OFS Capital shares last traded at $3.68, with a volume of 25,938 shares traded.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of OFS Capital from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. Weiss Ratings restated a “sell (d)” rating on shares of OFS Capital in a report on Thursday, June 4th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $7.00.

OFS Capital Stock Down 0.3%

The firm has a market cap of $49.31 million, a price-to-earnings ratio of -1.32 and a beta of 0.84. The firm has a 50 day moving average of $3.55 and a 200 day moving average of $3.93. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.49.

OFS Capital (NASDAQ:OFS) last issued its quarterly earnings results on Thursday, April 30th. The investment management company reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.03). The business had revenue of $2.56 million during the quarter, compared to analyst estimates of $9.45 million. OFS Capital had a negative net margin of 95.15% and a positive return on equity of 8.74%.

OFS Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 6th. Stockholders of record on Friday, June 19th were paid a $0.17 dividend. The ex-dividend date was Thursday, June 18th. This represents a $0.68 annualized dividend and a dividend yield of 18.5%. OFS Capital’s payout ratio is currently -24.37%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Marshall Wace LLP acquired a new stake in OFS Capital in the fourth quarter worth $377,000. Squarepoint Ops LLC acquired a new position in shares of OFS Capital during the fourth quarter valued at about $202,000. Concorde Asset Management LLC acquired a new position in shares of OFS Capital during the first quarter valued at about $64,000. Virtus Investment Advisers LLC raised its holdings in shares of OFS Capital by 24.0% during the fourth 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 period. Finally, Jane Street Group LLC bought a new position in shares of OFS Capital during the 4th quarter worth about $66,000. 10.81% of the stock is owned by institutional investors.

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.