Bain Capital Specialty Finance (NYSE:BCSF) Hits New 1-Year Low - Should You Sell?

Key Points

• BCSF shares hit a new 52-week low at $11.82 and last traded near $11.88, below both its 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with downgrades from Zacks Research and Keefe, Bruyette & Woods. The stock carries an average “Reduce” rating and a consensus price target of $12.75.
• The company reported quarterly EPS of $0.44, ahead of estimates, but revenue fell short of expectations. BCSF declared a $0.42 quarterly dividend, representing a high 14.1% yield, while its payout ratio stands at 169.7%.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report)'s stock price hit a new 52-week low on Wednesday . The company traded as low as $11.82 and last traded at $11.8840, with a volume of 75668 shares traded. The stock had previously closed at $11.90.

Wall Street Analysts Forecast Growth

BCSF has been the topic of a number of research analyst reports. Zacks Research downgraded Bain Capital Specialty Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 18th. Jefferies Financial Group set a $13.00 price target on Bain Capital Specialty Finance in a research report on Monday, August 17th. Wells Fargo & Company reduced their price objective on Bain Capital Specialty Finance from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 12th. Capital One Financial set a $13.00 price objective on Bain Capital Specialty Finance in a research report on Monday, August 17th. Finally, Keefe, Bruyette & Woods lowered Bain Capital Specialty Finance from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $15.00 to $13.00 in a research note on Monday, August 17th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $12.75.

Bain Capital Specialty Finance Stock Down 0.2%

The company has a debt-to-equity ratio of 1.39, a quick ratio of 7.20 and a current ratio of 7.20. The company has a fifty day simple moving average of $12.49 and a two-hundred day simple moving average of $12.79. The firm has a market capitalization of $770.64 million, a PE ratio of 12.00 and a beta of 0.58.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.02. The firm had revenue of $47.80 million during the quarter, compared to analysts' expectations of $64.44 million. Bain Capital Specialty Finance had a net margin of 24.22% and a return on equity of 10.40%. Analysts forecast that Bain Capital Specialty Finance, Inc. will post 1.64 EPS for the current fiscal year.

Bain Capital Specialty Finance Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th will be given a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 14.1%. The ex-dividend date of this dividend is Tuesday, September 15th. Bain Capital Specialty Finance's payout ratio is presently 169.70%.

Hedge Funds Weigh In On Bain Capital Specialty Finance

Several institutional investors and hedge funds have recently added to or reduced their stakes in BCSF. UBS Group AG boosted its holdings in shares of Bain Capital Specialty Finance by 7.7% in the 4th quarter. UBS Group AG now owns 1,607,210 shares of the company's stock valued at $22,356,000 after buying an additional 114,883 shares in the last quarter. Closed End Fund Advisors Inc. purchased a new stake in Bain Capital Specialty Finance during the fourth quarter valued at approximately $5,881,000. Legal & General Group Plc lifted its position in Bain Capital Specialty Finance by 18.0% during the fourth quarter. Legal & General Group Plc now owns 461,850 shares of the company's stock valued at $6,431,000 after acquiring an additional 70,398 shares during the last quarter. Spartan Wealth Advisory Services LLC purchased a new position in Bain Capital Specialty Finance in the first quarter worth $598,000. Finally, Alpine Global Management LLC increased its position in shares of Bain Capital Specialty Finance by 232.2% during the fourth quarter. Alpine Global Management LLC now owns 307,641 shares of the company's stock worth $4,279,000 after purchasing an additional 215,031 shares in the last quarter.

Bain Capital Specialty Finance Company Profile

Bain Capital Specialty Finance NYSE: BCSF is a closed-end interval fund organized as a specialty finance company. Since commencing operations in March 2017, the company has focused on originating and acquiring debt and equity investments in middle-market companies. It is structured to offer investors access to private credit and special situations strategies that are typically unavailable through traditional public debt markets.

The firm's core business activities include direct lending to U.S.

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