OFS Capital (NASDAQ:OFS) Share Price Passes Below 200-Day Moving Average – Here’s Why

OFS Capital Corporation (NASDAQ:OFS) shares crossed 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 trading hands.

Analyst Ratings Changes

OFS has been the subject of several research reports. Loop Capital set a $7.00 price objective on shares of OFS Capital in a research note on Tuesday, November 4th. Wall Street Zen raised shares of OFS Capital from a “sell” rating to a “hold” rating in a research note on Saturday, November 8th. Weiss Ratings downgraded OFS Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday. Capital One Financial set a $7.00 price target on shares of OFS Capital in a research note on Tuesday, November 4th. Finally, Noble Financial assumed coverage on shares of OFS Capital in a report on Tuesday, November 4th. They issued a “neutral” rating on the stock. One research 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, the stock has a consensus rating of “Reduce” and an average target price of $7.00.

OFS Capital Stock Down 0.8%

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

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

OFS Capital Cuts Dividend

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

Institutional Investors Weigh In On OFS Capital

Several large investors have recently made changes to their positions in the company. Connor Clark & Lunn Investment Management Ltd. boosted its stake in OFS Capital by 5.2% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 63,166 shares of the investment management company’s stock valued at $533,000 after purchasing an additional 3,105 shares in the last quarter. 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. Two Sigma Investments LP lifted its holdings 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 buying an additional 6,636 shares during the period. International Assets Investment Management LLC boosted its stake in OFS Capital by 16.9% during the third quarter. International Assets Investment Management LLC now owns 168,003 shares of the investment management company’s stock valued at $1,418,000 after buying an additional 24,264 shares in the last quarter. Finally, Ritholtz Wealth Management bought a new position in OFS Capital during the second quarter valued at about $347,000. 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.