OFS Capital (NASDAQ:OFS) Stock Price Passes Below 200 Day Moving Average – Time to Sell?

OFS Capital Corporation (NASDAQ:OFS) shares 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 traded.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on OFS shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of OFS Capital in a research report on Thursday, June 4th. Wall Street Zen raised OFS Capital from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. One 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, the stock has an average rating of “Reduce” and an average target price of $7.00.

OFS Capital Price Performance

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 $46.90 million, a PE ratio of -1.25 and a beta of 0.84. The business’s fifty day moving average is $3.54 and its 200-day moving average is $3.92.

OFS Capital (NASDAQ:OFS) last posted its quarterly earnings data on Thursday, April 30th. The investment management company reported $0.18 EPS 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 firm had revenue of $2.56 million during the quarter, compared to analysts’ expectations of $9.45 million.

OFS Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 6th. Investors of record on Friday, June 19th were paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 19.4%. The ex-dividend date was Thursday, June 18th. OFS Capital’s payout ratio is currently -24.37%.

Hedge Funds Weigh In On OFS Capital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Virtus Investment Advisers LLC raised its position 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 during the period. Two Sigma Investments LP boosted its holdings in OFS Capital by 5.8% in the 3rd quarter. Two Sigma Investments LP now owns 120,908 shares of the investment management company’s stock worth $930,000 after buying an additional 6,636 shares during the period. Squarepoint Ops LLC bought a new position in OFS Capital in the 4th quarter worth approximately $202,000. Marshall Wace LLP bought a new position in OFS Capital in the 4th quarter worth approximately $377,000. Finally, Jane Street Group LLC purchased a new position in OFS Capital in the 4th quarter valued at approximately $66,000. Institutional investors 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.