OFS Capital (NASDAQ:OFS) Cut 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 equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Friday.

OFS Capital Trading Up 0.3%

NASDAQ:OFS opened at $8.69 on Friday. OFS Capital has a one year low of $7.81 and a one year high of $9.80. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.06 and a quick ratio of 0.06. The company's 50-day simple moving average is $8.44 and its 200 day simple moving average is $8.61. The firm has a market capitalization of $116.45 million, a P/E ratio of 11.43 and a beta of 1.36.

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

Institutional Inflows and Outflows

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

OFS Capital Company Profile

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.

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