OFS Capital (NASDAQ:OFS) Stock Price Passes Below Two Hundred Day Moving Average - What's Next?

Key Points

• OFS Capital's stock has fallen below its 200-day moving average, trading at $6.87 compared to an average of $8.38.
• The company recently announced a quarterly dividend of $0.34 per share, resulting in a 19.8% dividend yield despite a payout ratio of 178.95%.
• Analysts give OFS Capital an average rating of "Hold," with one recent downgrade from "Hold" to "Sell" by Wall Street Zen.

OFS Capital Corporation (NASDAQ:OFS - Get Free Report) passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $8.38 and traded as low as $6.82. OFS Capital shares last traded at $6.87, with a volume of 66,520 shares.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on OFS. Weiss Ratings reiterated a "hold (c)" rating on shares of OFS Capital in a research note on Wednesday, October 8th. Wall Street Zen downgraded shares of OFS Capital from a "hold" rating to a "sell" rating in a research note on Friday, September 5th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of "Hold".

OFS Capital Price Performance

The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 0.43. The firm's fifty day moving average price is $8.08 and its two-hundred day moving average price is $8.38. The stock has a market capitalization of $92.06 million, a PE ratio of 9.04 and a beta of 1.37.

OFS Capital (NASDAQ:OFS - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The investment management company reported $0.25 earnings per share for the quarter, beating 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 during the quarter, compared to analysts' expectations of $10.00 million. On average, equities analysts predict that OFS Capital Corporation will post 1.17 earnings per share for the current year.

OFS Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Friday, September 19th were issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 19.8%. The ex-dividend date of this dividend was Friday, September 19th. OFS Capital's payout ratio is presently 178.95%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Connor Clark & Lunn Investment Management Ltd. raised its holdings in shares of OFS Capital by 22.4% during the first 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 last quarter. Ritholtz Wealth Management purchased a new stake in OFS Capital during the second quarter valued at approximately $347,000. Fort Sheridan Advisors LLC purchased a new stake in OFS Capital during the first quarter valued at approximately $100,000. 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, Bank of America Corp DE increased its holdings in 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 buying an additional 5,029 shares during the last quarter. 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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