OFS Capital (NASDAQ:OFS) Shares Cross Below Two Hundred Day Moving Average – Should You Sell?

Shares of OFS Capital Corporation (NASDAQ:OFS) passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $4.28 and traded as low as $3.36. OFS Capital shares last traded at $3.43, with a volume of 50,464 shares traded.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised shares of OFS Capital from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. One equities 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 presently has a consensus rating of “Reduce” and an average price target of $7.00.

OFS Capital Stock Performance

The stock’s 50-day moving average price is $3.60 and its 200 day moving average price is $4.27. 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 firm has a market cap of $46.50 million, a P/E ratio of -1.24 and a beta of 0.92.

OFS Capital (NASDAQ:OFS) last issued its earnings results on Thursday, April 30th. The investment management company reported $0.18 earnings per share for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.03). The firm had revenue of $3.57 million for the quarter, compared to analyst estimates of $9.45 million. OFS Capital had a positive return on equity of 8.74% and a negative net margin of 95.15%.

OFS Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, July 6th. Investors of record on Friday, June 19th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 19.6%. The ex-dividend date is Thursday, June 18th. OFS Capital’s payout ratio is presently -24.37%.

Hedge Funds Weigh In On OFS Capital

Institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its holdings in OFS Capital by 53.3% during the fourth quarter. Royal Bank of Canada now owns 11,500 shares of the investment management company’s stock worth $55,000 after buying an additional 4,000 shares during the last quarter. Bank of America Corp DE increased its holdings in OFS Capital by 245.3% during the fourth 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 position in OFS Capital during the fourth quarter worth $66,000. Squarepoint Ops LLC acquired a new position in OFS Capital during the fourth quarter worth $202,000. Finally, Marshall Wace LLP acquired a new position in OFS Capital during the fourth quarter worth $377,000. 10.81% of the stock is currently owned by institutional investors and hedge funds.

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.