Short Interest in OFS Credit Company, Inc. (NASDAQ:OCCI) Declines By 46.3%

Key Points

• OFS Credit’s short interest fell 46.3% to 151,830 shares as of August 31, representing 0.5% of shares outstanding and 0.7 days of average trading volume.
• OCCI shares traded at $2.39, near the lower end of their $2.15–$6.03 52-week range. Institutional investors and hedge funds own 23.77% of the company, with several firms recently initiating or increasing positions.
• The company reported quarterly earnings and revenue in line with analyst expectations and announced a $0.05 monthly dividend, implying a reported annualized yield of 25.1%.

OFS Credit Company, Inc. (NASDAQ:OCCI - Get Free Report) saw a significant decline in short interest during the month of August. As of August 31st, there was short interest totaling 151,830 shares, a decline of 46.3% from the August 15th total of 282,745 shares. Currently, 0.5% of the shares of the company are sold short. Based on an average daily trading volume, of 202,637 shares, the short-interest ratio is presently 0.7 days.

Analyst Ratings Changes

Separately, Wall Street Zen raised OFS Credit from a "sell" rating to a "hold" rating in a report on Sunday, June 21st.

Hedge Funds Weigh In On OFS Credit

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Two Sigma Securities LLC acquired a new position in OFS Credit in the 2nd quarter worth approximately $40,000. Advisory Solutions Group LLC bought a new stake in OFS Credit in the second quarter worth approximately $49,000. Finally, Kestra Advisory Services LLC increased its stake in shares of OFS Credit by 12.1% during the 1st quarter. Kestra Advisory Services LLC now owns 92,856 shares of the company's stock worth $268,000 after purchasing an additional 10,000 shares during the last quarter. Institutional investors and hedge funds own 23.77% of the company's stock.

OFS Credit Price Performance

Shares of OCCI traded down $0.17 during midday trading on Tuesday, reaching $2.39. The stock had a trading volume of 340,121 shares, compared to its average volume of 305,083. OFS Credit has a 52 week low of $2.15 and a 52 week high of $6.03. The firm's 50 day moving average price is $2.53 and its 200-day moving average price is $2.84. The company has a market capitalization of $70.20 million, a P/E ratio of -1.96 and a beta of 0.72.

OFS Credit (NASDAQ:OCCI - Get Free Report) last announced its earnings results on Monday, June 22nd. The company reported $0.19 earnings per share for the quarter, meeting the consensus estimate of $0.19. The firm had revenue of $9.20 million for the quarter, compared to the consensus estimate of $9.20 million.

OFS Credit Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 15th will be given a dividend of $0.05 per share. The ex-dividend date of this dividend is Thursday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 25.1%. OFS Credit's payout ratio is -75.41%.

About OFS Credit

OFS Credit Company, Inc NASDAQ: OCCI is a closed-end, externally managed business development company that primarily invests in senior secured loans to U.S. middle-market companies. As a registered investment company under the Investment Company Act of 1940, OFS Credit seeks to generate current income and capital appreciation by providing first-lien and second-lien debt financing to privately held and sponsor-backed businesses. The company targets borrowers with stable cash flows and defensible market positions across diverse industries, including business services, healthcare, manufacturing and technology.

The company's investment portfolio is weighted toward floating-rate loan instruments and subordinated debt, complemented by selective equity and equity-related securities.

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