Bain Capital Credit LP Trims Stock Holdings in Bain Capital Specialty Finance, Inc. $BCSF

Key Points

• Bain Capital Credit LP has reduced its stake in Bain Capital Specialty Finance, Inc. by 4.0%, selling 487,676 shares but still holding 11,822,433 shares, making it the largest position in its portfolio.
• Multiple large investors, including Mutual Advisors LLC and Comerica Bank, have increased their holdings in Bain Capital Specialty Finance during the first quarter of the year.
• Bain Capital Specialty Finance declared a quarterly dividend of $0.42, representing a 10.8% yield based on an annual payout of $1.68.

Bain Capital Credit LP cut its stake in Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Free Report) by 4.0% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 11,822,433 shares of the company's stock after selling 487,676 shares during the period. Bain Capital Specialty Finance comprises approximately 47.9% of Bain Capital Credit LP's portfolio, making the stock its largest position. Bain Capital Credit LP owned about 18.23% of Bain Capital Specialty Finance worth $196,252,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in BCSF. Advisors Asset Management Inc. increased its stake in Bain Capital Specialty Finance by 4.9% in the 1st quarter. Advisors Asset Management Inc. now owns 254,563 shares of the company's stock worth $4,226,000 after purchasing an additional 11,892 shares during the period. PDT Partners LLC purchased a new stake in shares of Bain Capital Specialty Finance during the first quarter valued at approximately $956,000. Cubist Systematic Strategies LLC purchased a new stake in shares of Bain Capital Specialty Finance during the first quarter valued at approximately $2,024,000. Royal Bank of Canada boosted its holdings in Bain Capital Specialty Finance by 3.5% in the first 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 during the last quarter. Finally, Quarry LP purchased a new stake in Bain Capital Specialty Finance in the first quarter worth approximately $100,000.

Analyst Upgrades and Downgrades

Separately, Zacks Research upgraded shares of Bain Capital Specialty Finance from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $16.50.

Bain Capital Specialty Finance Stock Performance

BCSF traded up $0.03 during midday trading on Friday, reaching $15.68. The company had a trading volume of 191,093 shares, compared to its average volume of 228,920. The company has a quick ratio of 3.63, a current ratio of 3.63 and a debt-to-equity ratio of 1.37. Bain Capital Specialty Finance, Inc. has a 1 year low of $13.20 and a 1 year high of $19.21. The business has a 50-day moving average of $15.30 and a two-hundred day moving average of $15.67. The company has a market cap of $1.02 billion, a P/E ratio of 9.44 and a beta of 0.83.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $0.47 earnings per share for the quarter, beating analysts' consensus estimates of $0.43 by $0.04. Bain Capital Specialty Finance had a net margin of 37.90% and a return on equity of 11.41%. The company had revenue of $70.97 million for the quarter, compared to analysts' expectations of $67.88 million. As a group, equities research analysts predict that Bain Capital Specialty Finance, Inc. will post 2.06 earnings per share for the current fiscal year.

Bain Capital Specialty Finance Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th will be paid a dividend of $0.42 per share. The ex-dividend date is Tuesday, September 16th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 10.7%. Bain Capital Specialty Finance's payout ratio is 101.20%.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc is business development company specializing in direct loans to middle-market companies. The fund seeks to invest in senior investments with a first or second lien on collateral, senior first lien, stretch senior, senior second lien, unitranche, mezzanine debt, junior securities, other junior investments, and secondary purchases of assets or portfolios that primarily consist of middle-market corporate debt.