Bain Capital Specialty Finance (NYSE:BCSF) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Bain Capital Specialty Finance to “strong sell” from “hold.” Other analysts also became more cautious, with the consensus rating at “Reduce” and an average price target of $12.75.
• BCSF shares opened at $12.09, below their 50-day and 200-day moving averages, and near the lower end of their 52-week range of $11.82 to $15.84. Wells Fargo cut its price target to $12, while Keefe, Bruyette & Woods lowered its target to $13.
• The company’s latest quarterly earnings of $0.44 per share exceeded estimates of $0.42, but revenue of $47.8 million fell well short of the $64.44 million consensus forecast. Several institutional investors nonetheless increased or initiated positions in the stock.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other research analysts also recently weighed in 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 note on Monday. Capital One Financial set a $13.00 price target on Bain Capital Specialty Finance in a report on Monday. Wells Fargo & Company lowered their price objective on shares of Bain Capital Specialty Finance from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research report on Wednesday, August 12th. Finally, Jefferies Financial Group set a $13.00 price objective on shares of Bain Capital Specialty Finance in a research report on Monday. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $12.75.

Bain Capital Specialty Finance Trading Up 0.1%

NYSE BCSF opened at $12.09 on Tuesday. The firm's fifty day moving average is $12.58 and its two-hundred day moving average is $12.86. Bain Capital Specialty Finance has a one year low of $11.82 and a one year high of $15.84. The company has a debt-to-equity ratio of 1.39, a quick ratio of 7.20 and a current ratio of 7.20. The firm has a market cap of $784.15 million, a PE ratio of 12.21 and a beta of 0.58.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last announced its earnings results on Monday, August 10th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.02. The business had revenue of $47.80 million during the quarter, compared to the consensus estimate of $64.44 million. Bain Capital Specialty Finance had a net margin of 24.22% and a return on equity of 10.40%. Analysts expect that Bain Capital Specialty Finance will post 1.64 earnings per share for the current year.

Institutional Investors Weigh In On Bain Capital Specialty Finance

A number of hedge funds and other institutional investors have recently bought and sold shares of BCSF. Royal Bank of Canada boosted its position in shares of Bain Capital Specialty Finance by 3.5% during the 1st quarter. Royal Bank of Canada now owns 140,801 shares of the company's stock worth $2,337,000 after purchasing an additional 4,722 shares in the last quarter. Quantbot Technologies LP acquired a new stake in shares of Bain Capital Specialty Finance in the second quarter valued at about $121,000. Invesco Ltd. boosted its holdings in Bain Capital Specialty Finance by 12.0% during the second quarter. Invesco Ltd. now owns 84,111 shares of the company's stock worth $1,265,000 after buying an additional 9,017 shares in the last quarter. Marshall Wace LLP purchased a new stake in Bain Capital Specialty Finance during the second quarter worth about $980,000. Finally, Jump Financial LLC grew its position in Bain Capital Specialty Finance by 402.6% during the second quarter. Jump Financial LLC now owns 60,622 shares of the company's stock worth $912,000 after buying an additional 48,561 shares during the period.

Bain Capital Specialty Finance Company Profile

Bain Capital Specialty Finance NYSE: BCSF is a closed-end interval fund organized as a specialty finance company. Since commencing operations in March 2017, the company has focused on originating and acquiring debt and equity investments in middle-market companies. It is structured to offer investors access to private credit and special situations strategies that are typically unavailable through traditional public debt markets.

The firm's core business activities include direct lending to U.S.

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