National Securities Lowers OFS Capital Corporation (OFS) Price Target to $15.00
OFS Capital Corporation (NASDAQ:OFS) had its price objective reduced by equities research analysts at National Securities from $16.00 to $15.00 in a research note issued on Monday. The brokerage presently has a “buy” rating on the investment management company’s stock. National Securities’ price target suggests a potential upside of 20.58% from the company’s current price.
The analysts wrote, “• For 3Q17, OFS reported adjusted NII/share of $0.33, a penny shy of both our estimate as well as the dividend. During the quarter, My Alarm Center was restructured as expected, driving the $1.6 million net realized loss and the only remaining non-accrual, Community Intervention Services, was written down by another $1.3 million.
• The additional write-downs drove the Q/Q NAV decline of 1.8% to $14.15. Despite the drop in NAV, OFS booked a full quarter of incentive fees after doing the right thing in 2Q17 and not taking an incentive fee. The company has no formal total return hurdle, but we would like to see the company implement a rolling three-year lookback feature that is retroactively applied. If there was no incentive fee earned during the quarter, adjusted NII/share would have been $0.41/share.
• The portfolio grew slightly during the quarter with originations of $42.4 million versus sales and repayments of $40.2 million. With OFS finishing 9/30/17 with regulatory D/E (excluding SBA debentures) of only 0.09x, we believe the company has significant dry powder to drive good portfolio growth through 2018.
• We are revising our 2017 adjusted NII/share estimate to $1.38 from $1.41 our 2018 adjusted NII/share estimate of to $1.41 from $1.49. “
A number of other research analysts also recently issued reports on OFS. Zacks Investment Research upgraded OFS Capital Corporation from a “sell” rating to a “hold” rating in a research note on Wednesday, July 12th. Robert W. Baird downgraded OFS Capital Corporation from an “outperform” rating to a “neutral” rating and dropped their price target for the stock from $16.00 to $13.00 in a research note on Monday, August 7th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the stock. OFS Capital Corporation has an average rating of “Hold” and an average target price of $14.67.
OFS Capital Corporation (OFS) opened at $12.44 on Monday. OFS Capital Corporation has a 1-year low of $12.25 and a 1-year high of $15.23. The company has a market capitalization of $168.02, a PE ratio of 9.06 and a beta of 0.47. The company has a debt-to-equity ratio of 0.80, a current ratio of 14.51 and a quick ratio of 14.51.
OFS Capital Corporation (NASDAQ:OFS) last released its quarterly earnings data on Friday, November 3rd. The investment management company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.02. OFS Capital Corporation had a return on equity of 9.85% and a net margin of 25.74%. The business had revenue of $9.12 million for the quarter, compared to the consensus estimate of $8.77 million. sell-side analysts forecast that OFS Capital Corporation will post 1.29 earnings per share for the current year.
WARNING: This article was originally reported by The Cerbat Gem and is owned by of The Cerbat Gem. If you are accessing this article on another publication, it was illegally copied and republished in violation of US & international copyright & trademark law. The original version of this article can be viewed at https://www.thecerbatgem.com/2017/11/08/national-securities-lowers-ofs-capital-corporation-ofs-price-target-to-15-00.html.
Institutional investors have recently bought and sold shares of the business. Wells Fargo & Company MN lifted its position in OFS Capital Corporation by 243.0% during the 1st quarter. Wells Fargo & Company MN now owns 14,929 shares of the investment management company’s stock worth $212,000 after acquiring an additional 10,577 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in shares of OFS Capital Corporation in the 2nd quarter valued at approximately $290,000. Shikiar Asset Management Inc. lifted its holdings in shares of OFS Capital Corporation by 24.8% in the 2nd quarter. Shikiar Asset Management Inc. now owns 24,950 shares of the investment management company’s stock valued at $357,000 after buying an additional 4,950 shares during the period. JPMorgan Chase & Co. acquired a new stake in shares of OFS Capital Corporation in the 2nd quarter valued at approximately $545,000. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of OFS Capital Corporation by 39.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 42,723 shares of the investment management company’s stock valued at $606,000 after buying an additional 12,101 shares during the period. 28.56% of the stock is owned by institutional investors.
About OFS Capital Corporation
OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities.
Receive News & Stock Ratings for OFS Capital Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OFS Capital Corporation and related stocks with our FREE daily email newsletter.