OFS Capital (NASDAQ:OFS) Stock Crosses Above Fifty Day Moving Average - Here's What Happened

Key Points

• Technical move: OFS Capital crossed above its 50-day moving average of $3.77, trading as high as $4.13 and last at $4.10 on volume of 71,218 shares, but it remains below its 200-day MA of $4.93 and has a market cap of about $54.9 million.
• Analyst and financial caution: Weiss Ratings downgraded the stock to "sell" and the consensus is "Reduce" (PT $7.00); the company missed quarterly EPS estimates ($0.20 vs. $0.23), reported a negative net margin (-81.33%), yet pays a high annualized dividend yield of 16.6%.

OFS Capital Corporation (NASDAQ:OFS - Get Free Report) crossed above its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of $3.77 and traded as high as $4.13. OFS Capital shares last traded at $4.10, with a volume of 71,218 shares traded.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings downgraded shares of OFS Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, January 7th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, OFS Capital has a consensus rating of "Reduce" and a consensus price target of $7.00.

OFS Capital Trading Up 0.5%

The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.02 and a current ratio of 0.02. The company has a market capitalization of $54.93 million, a price-to-earnings ratio of -1.66 and a beta of 0.86. The business's 50-day simple moving average is $3.77 and its 200-day simple moving average is $4.93.

OFS Capital (NASDAQ:OFS - Get Free Report) last released its earnings results on Monday, March 2nd. The investment management company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.03). OFS Capital had a negative net margin of 81.33% and a positive return on equity of 8.75%. The business had revenue of ($9.10) million for the quarter, compared to analyst estimates of $10.50 million. On average, research analysts expect that OFS Capital Corporation will post 1.17 earnings per share for the current fiscal year.

OFS Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 20th were given a dividend of $0.17 per share. The ex-dividend date was Friday, March 20th. This represents a $0.68 dividend on an annualized basis and a yield of 16.6%. OFS Capital's dividend payout ratio is presently -27.53%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in OFS. Bank of America Corp DE lifted its position in 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 valued at $57,000 after purchasing an additional 5,029 shares during the period. International Assets Investment Management LLC increased its stake in shares of OFS Capital by 16.9% in the 3rd quarter. International Assets Investment Management LLC now owns 168,003 shares of the investment management company's stock valued at $1,418,000 after acquiring an additional 24,264 shares during the last quarter. Two Sigma Investments LP increased its stake in shares of 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 acquiring an additional 6,636 shares during the last quarter. Jane Street Group LLC bought a new stake in shares of OFS Capital in the 4th quarter valued at about $66,000. Finally, Marshall Wace LLP bought a new stake in shares of OFS Capital in the 4th quarter valued at about $377,000. 10.81% of the stock is currently 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.

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