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

Shares of 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 $4.21 and traded as low as $3.35. OFS Capital shares last traded at $3.52, with a volume of 131,356 shares.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised OFS Capital from a “sell” rating to a “hold” rating in a report on Sunday, May 17th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $7.00.

OFS Capital Stock Performance

The stock has a 50-day simple moving average of $3.64 and a 200 day simple moving average of $4.21. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.04 and a quick ratio of 0.04. The company has a market capitalization of $47.17 million, a PE ratio of -1.26 and a beta of 0.86.

OFS Capital (NASDAQ:OFS) last posted its earnings results on Thursday, April 30th. The investment management company reported $0.18 earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $3.57 million for the quarter, compared to analysts’ expectations of $9.45 million.

OFS Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 6th. Shareholders of record on Friday, June 19th will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 19.3%. The ex-dividend date is Thursday, June 18th. OFS Capital’s dividend payout ratio (DPR) is -24.37%.

Hedge Funds Weigh In On OFS Capital

Several hedge funds have recently added to or reduced their stakes in OFS. Royal Bank of Canada increased its holdings in 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 valued at $55,000 after acquiring an additional 4,000 shares in the last quarter. Bank of America Corp DE increased its holdings in 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 valued at $57,000 after acquiring an additional 5,029 shares in the last quarter. Concorde Asset Management LLC purchased a new stake in shares of OFS Capital in the first quarter valued at $64,000. Jane Street Group LLC acquired a new stake in shares of OFS Capital during the fourth quarter valued at $66,000. Finally, Squarepoint Ops LLC acquired a new stake in shares of OFS Capital during the fourth quarter valued at $202,000. 10.81% of the stock is currently owned by hedge funds and other 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.