OFS Capital (NASDAQ:OFS) Shares Cross Below 200 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 $3.93 and traded as low as $3.66. OFS Capital shares last traded at $3.68, with a volume of 25,938 shares.

Analysts Set New Price Targets

OFS has been the topic of several recent research reports. Wall Street Zen upgraded OFS Capital from a “sell” rating to a “hold” rating in a report on Sunday, May 17th. Weiss Ratings restated a “sell (d)” rating on shares of OFS Capital in a report on Thursday, June 4th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $7.00.

OFS Capital Price Performance

The stock has a market capitalization of $49.31 million, a P/E ratio of -1.32 and a beta of 0.84. The business’s 50 day simple moving average is $3.55 and its two-hundred day simple moving average is $3.93. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.49.

OFS Capital (NASDAQ:OFS) last issued its quarterly earnings data on Thursday, April 30th. The investment management company reported $0.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.03). The business had revenue of $2.56 million for the quarter, compared to analyst estimates of $9.45 million. OFS Capital had a negative net margin of 95.15% and a positive return on equity of 8.74%.

OFS Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, July 6th. Investors of record on Friday, June 19th were given a $0.17 dividend. The ex-dividend date of this dividend was Thursday, June 18th. This represents a $0.68 annualized dividend and a yield of 18.5%. OFS Capital’s dividend payout ratio (DPR) is presently -24.37%.

Hedge Funds Weigh In On OFS Capital

Hedge funds have recently added to or reduced their stakes in the stock. Marshall Wace LLP bought a new stake in OFS Capital during the 4th quarter worth approximately $377,000. Squarepoint Ops LLC purchased a new stake in shares of OFS Capital in the fourth quarter worth approximately $202,000. Concorde Asset Management LLC bought a new position in shares of OFS Capital in the first quarter valued at approximately $64,000. Virtus Investment Advisers LLC lifted its holdings in shares of OFS Capital by 24.0% in the fourth quarter. Virtus Investment Advisers LLC now owns 82,221 shares of the investment management company’s stock valued at $391,000 after purchasing an additional 15,935 shares in the last quarter. Finally, Jane Street Group LLC purchased a new position in shares of OFS Capital during the fourth quarter valued at approximately $66,000. Institutional investors and hedge funds own 10.81% of the company’s stock.

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.