OFS Capital (NASDAQ:OFS) Rating Lowered to Sell at Wall Street Zen

Key Points

• OFS Capital has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating potential challenges ahead for the company.
• The company reported $0.25 EPS for the last quarter, which exceeded analysts' expectations of $0.24, alongside revenue of $10.48 million, surpassing estimates.
• Notable institutional investors have recently increased their stakes in OFS Capital, with Bank of America raising its holdings by 245.3% in the fourth quarter.

OFS Capital (NASDAQ:OFS - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Friday.

OFS Capital Stock Performance

NASDAQ:OFS traded up $0.09 during mid-day trading on Friday, reaching $8.72. The stock had a trading volume of 26,157 shares, compared to its average volume of 30,716. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.06 and a current ratio of 0.06. The firm has a market capitalization of $116.85 million, a price-to-earnings ratio of 11.47 and a beta of 1.36. OFS Capital has a twelve month low of $7.81 and a twelve month high of $9.80. The business has a 50 day simple moving average of $8.45 and a 200 day simple moving average of $8.61.

OFS Capital (NASDAQ:OFS - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The investment management company reported $0.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.01. OFS Capital had a net margin of 23.64% and a return on equity of 9.16%. The company had revenue of $10.48 million during the quarter, compared to the consensus estimate of $10.00 million. On average, analysts expect that OFS Capital will post 1.17 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of OFS. Bank of America Corp DE raised its position in shares of OFS Capital by 245.3% during the 4th quarter. Bank of America Corp DE now owns 7,079 shares of the investment management company's stock worth $57,000 after purchasing an additional 5,029 shares during the last quarter. Two Sigma Advisers LP raised its holdings in OFS Capital by 16.3% in the 4th quarter. Two Sigma Advisers LP now owns 199,200 shares of the investment management company's stock valued at $1,608,000 after acquiring an additional 27,900 shares during the last quarter. NBC Securities Inc. raised its holdings in OFS Capital by 130,533.3% in the 1st quarter. NBC Securities Inc. now owns 3,919 shares of the investment management company's stock valued at $36,000 after acquiring an additional 3,916 shares during the last quarter. International Assets Investment Management LLC raised its holdings in OFS Capital by 3.0% in the 1st quarter. International Assets Investment Management LLC now owns 143,597 shares of the investment management company's stock valued at $1,334,000 after acquiring an additional 4,200 shares during the last quarter. Finally, Fort Sheridan Advisors LLC acquired a new position in OFS Capital in the 1st quarter valued at $100,000. 10.81% of the stock is currently owned by institutional investors and hedge funds.

About OFS Capital

OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It provides flexible capital solutions primarily through debt capital and to a lesser extent, minority equity investments serving the needs of U.S.-based middle-market companies across a broad array of industries.