OFS Capital (NASDAQ:OFS) Stock Price Crosses Below 200-Day Moving Average - What's Next?

Key Points

• OFS Capital's stock fell below its 200-day moving average, trading at $7.71, which is significantly lower than the average of $8.55.
• The company was dropped from a "hold" to a "sell" rating by Wall Street Zen on September 5th, indicating a negative outlook from analysts.
• OFS Capital recently announced a quarterly dividend of $0.34 per share, representing a 17.6% yield, though the payout ratio stands at an exceptionally high 178.95%.

OFS Capital Corporation (NASDAQ:OFS - Get Free Report) shares passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $8.55 and traded as low as $7.56. OFS Capital shares last traded at $7.71, with a volume of 56,500 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen cut shares of OFS Capital from a "hold" rating to a "sell" rating in a research report on Friday, September 5th.

OFS Capital Stock Up 1.3%

The firm's 50-day simple moving average is $8.35 and its 200 day simple moving average is $8.55. 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 stock has a market capitalization of $103.31 million, a P/E ratio of 10.14 and a beta of 1.38.

OFS Capital (NASDAQ:OFS - Get Free Report) last issued its quarterly earnings results 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. OFS Capital had a net margin of 23.64% and a return on equity of 9.16%. The firm had revenue of $10.48 million for the quarter, compared to analysts' expectations of $10.00 million. As a group, research analysts expect that OFS Capital Corporation will post 1.17 EPS for the current year.

OFS Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Friday, September 19th were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Friday, September 19th. This represents a $1.36 annualized dividend and a yield of 17.6%. OFS Capital's payout ratio is 178.95%.

Institutional Investors Weigh In On OFS Capital

Institutional investors and hedge funds have recently modified their holdings of the company. NBC Securities Inc. raised its holdings in shares of 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 purchasing an additional 3,916 shares during the period. Bank of America Corp DE raised its holdings in shares of OFS Capital by 245.3% in 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. Fort Sheridan Advisors LLC bought a new stake in shares of OFS Capital in the 1st quarter valued at about $100,000. Ritholtz Wealth Management bought a new stake in shares of OFS Capital in the 2nd quarter valued at about $347,000. Finally, Connor Clark & Lunn Investment Management Ltd. raised its holdings in shares of OFS Capital by 22.4% in the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 60,061 shares of the investment management company's stock valued at $558,000 after purchasing an additional 10,995 shares during the period. 10.81% of the stock is owned by 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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