OFS Capital (NASDAQ:OFS) Posts Quarterly Earnings Results, Misses Estimates By $0.03 EPS

OFS Capital (NASDAQ:OFS) issued its earnings results on Monday. The investment management company reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.03), Zacks reports. The firm had revenue of ($17.96) million for the quarter, compared to analyst estimates of $10.50 million. OFS Capital had a positive return on equity of 8.39% and a negative net margin of 81.33%.

OFS Capital Trading Down 4.8%

OFS stock opened at $4.00 on Wednesday. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.43. OFS Capital has a 52 week low of $3.98 and a 52 week high of $9.80. The business has a 50-day simple moving average of $4.59 and a 200 day simple moving average of $5.98.

OFS Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 20th will be issued a $0.17 dividend. The ex-dividend date of this dividend is Friday, March 20th. This represents a $0.68 annualized dividend and a yield of 17.0%. OFS Capital’s payout ratio is currently 283.33%.

Institutional Investors Weigh In On OFS Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada boosted 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 valued at $55,000 after purchasing an additional 4,000 shares in the last quarter. Bank of America Corp DE lifted its position in shares of OFS Capital by 245.3% during 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 during the last quarter. Jane Street Group LLC acquired a new stake in OFS Capital in the fourth quarter valued at about $66,000. Squarepoint Ops LLC bought a new position in OFS Capital in the fourth quarter valued at about $202,000. Finally, Marshall Wace LLP bought a new position in OFS Capital in the fourth quarter valued at about $377,000. 10.81% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Loop Capital set a $7.00 price objective on shares of OFS Capital in a research note on Tuesday, November 4th. Noble Financial initiated coverage on OFS Capital in a research note on Tuesday, November 4th. They set a “neutral” rating for the company. Capital One Financial set a $7.00 price target on 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 report on Saturday, November 8th. Finally, Weiss Ratings lowered shares of OFS Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, January 7th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, OFS Capital has a consensus rating of “Reduce” and a consensus price target of $7.00.

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.