Bain Capital Specialty Finance (NYSE:BCSF) Issues Quarterly Earnings Results

Bain Capital Specialty Finance (NYSE:BCSF) issued its quarterly earnings results on Monday. The company reported $0.43 EPS for the quarter, hitting the consensus estimate of $0.43, Zacks reports. Bain Capital Specialty Finance had a net margin of 24.14% and a return on equity of 10.33%. The firm had revenue of $39.71 million for the quarter, compared to analysts’ expectations of $61.03 million.

Bain Capital Specialty Finance Stock Performance

NYSE BCSF traded down $0.10 during trading on Wednesday, reaching $11.12. 50,665 shares of the company’s stock were exchanged, compared to its average volume of 456,946. The business has a 50 day moving average price of $10.96 and a 200-day moving average price of $12.37. The stock has a market capitalization of $721.67 million, a P/E ratio of 11.61 and a beta of 0.59. The company has a debt-to-equity ratio of 1.39, a current ratio of 7.20 and a quick ratio of 7.20. Bain Capital Specialty Finance has a fifty-two week low of $9.99 and a fifty-two week high of $14.70.

Bain Capital Specialty Finance Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Shareholders of record on Tuesday, December 15th will be given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 15.1%. The ex-dividend date of this dividend is Tuesday, December 15th. Bain Capital Specialty Finance’s payout ratio is 175.00%.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Keefe, Bruyette & Woods downgraded Bain Capital Specialty Finance from an “outperform” rating to a “market perform” rating and lowered their target price for the company from $15.00 to $13.00 in a research report on Monday, August 17th. Capital One Financial set a $12.50 price objective on Bain Capital Specialty Finance in a report on Friday, September 18th. Jefferies Financial Group set a $13.00 target price on shares of Bain Capital Specialty Finance in a research note on Monday, August 17th. Zacks Research upgraded shares of Bain Capital Specialty Finance from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 13th. Finally, Wells Fargo & Company dropped their price target on shares of Bain Capital Specialty Finance from $12.00 to $11.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Four analysts have rated the stock with a Hold rating. According to MarketBeat, Bain Capital Specialty Finance currently has a consensus rating of “Hold” and a consensus price target of $12.40.

Key Bain Capital Specialty Finance News

These are some of the BCSF news items that stood out recently:

• Positive Sentiment: BCSF declared a fourth-quarter dividend of $0.42 per share, payable December 29 to shareholders of record December 15. That equals $1.68 annualized, or about a 15% yield at the referenced share price. Company earnings and dividend announcement
• Negative Sentiment: Third-quarter EPS of $0.43 matched consensus, but revenue of $39.71 million was well below the $61.03 million estimate. A separate report said the net investment income beat relied on waived fees, potentially raising questions about the durability of earnings. Quarterly earnings analysis
• Negative Sentiment: Wells Fargo lowered its price target from $12 to $11 and kept an “equal weight” rating. Reports also noted BCSF shares fell below their 50-day moving average after the earnings news, adding a technical headwind. Wells Fargo ratings

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc. is a business development company that provides financing to middle-market businesses. Its investment portfolio focuses primarily on debt, including first-lien senior secured and unitranche loans, and may also include other debt securities and equity investments. The company works with businesses across a range of industries, primarily in the United States, and may invest in companies in other countries. Bain Capital Specialty Finance is externally managed by Bain Capital Credit, an investment manager affiliated with Bain Capital.