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

OFS Capital Corporation (NASDAQ:OFS)’s share price crossed 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 note on Sunday, May 17th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $7.00.

OFS Capital Stock Up 1.2%

The company has a market cap of $45.96 million, a price-to-earnings ratio of -1.23 and a beta of 0.92. The business has a 50-day simple moving average of $3.60 and a two-hundred day simple moving average of $4.28. 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 for the quarter, missing analysts’ consensus estimates 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 company had revenue of $3.57 million during the quarter, compared to the consensus estimate of $9.45 million.

OFS Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 6th. Stockholders of record on Friday, June 19th will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 19.8%. The ex-dividend date is Thursday, June 18th. OFS Capital’s payout ratio is presently -24.37%.

Institutional Investors Weigh In On OFS Capital

Several hedge funds and other institutional investors have recently made changes to their positions in OFS. Two Sigma Investments LP grew 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 valued at $930,000 after buying an additional 6,636 shares during the last quarter. Virtus Investment Advisers LLC increased its holdings in OFS Capital by 24.0% in the 4th quarter. Virtus Investment Advisers LLC now owns 82,221 shares of the investment management company’s stock valued at $391,000 after buying an additional 15,935 shares during the period. Squarepoint Ops LLC acquired a new position in OFS Capital in the fourth quarter worth about $202,000. Marshall Wace LLP bought a new position in shares of OFS Capital during the 4th quarter worth approximately $377,000. Finally, Jane Street Group LLC bought a new position in shares of OFS Capital during the fourth quarter valued at $66,000. 10.81% of the stock is 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.