Bain Capital Specialty Finance (NYSE:BCSF) Hits New 52-Week Low - Here's What Happened

Key Points

• BCSF shares hit a new 52-week low, falling 3.2% to $11.09, below its 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with ratings downgrades and price-target cuts producing a consensus “Reduce” rating and an average target of $12.75.
• The company reported quarterly EPS of $0.44, exceeding estimates, and declared a $0.42 quarterly dividend—equivalent to a 15.2% annualized yield, though its payout ratio is elevated at 169.7%.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The company traded as low as $11.09 and last traded at $11.0970, with a volume of 2801 shares traded. The stock had previously closed at $11.44.

Wall Street Analyst Weigh In

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

Bain Capital Specialty Finance Stock Down 3.2%

The company has a 50-day simple moving average of $12.35 and a 200-day simple moving average of $12.68. The firm has a market cap of $718.69 million, a PE ratio of 11.18 and a beta of 0.58. The company has a debt-to-equity ratio of 1.39, a current ratio of 7.20 and a quick ratio of 7.20.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last released its 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. Bain Capital Specialty Finance had a return on equity of 10.40% and a net margin of 24.22%.The business had revenue of $47.80 million during the quarter, compared to the consensus estimate of $64.44 million. Analysts expect that Bain Capital Specialty Finance, Inc. will post 1.64 earnings per share for the current fiscal year.

Bain Capital Specialty Finance Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.42 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.2%. Bain Capital Specialty Finance's dividend payout ratio (DPR) is currently 169.70%.

Hedge Funds Weigh In On Bain Capital Specialty Finance

Several institutional investors and hedge funds have recently bought and sold shares of BCSF. Closed End Fund Advisors Inc. acquired a new position in Bain Capital Specialty Finance during the 4th quarter valued at approximately $5,881,000. Alpine Global Management LLC boosted its stake in shares of Bain Capital Specialty Finance by 232.2% in the fourth quarter. Alpine Global Management LLC now owns 307,641 shares of the company's stock worth $4,279,000 after buying an additional 215,031 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S increased its holdings in shares of Bain Capital Specialty Finance by 255.5% during the 4th quarter. BI Asset Management Fondsmaeglerselskab A S now owns 156,337 shares of the company's stock valued at $2,175,000 after purchasing an additional 112,360 shares in the last quarter. Legal & General Group Plc raised its position in shares of Bain Capital Specialty Finance by 18.0% in the fourth quarter. Legal & General Group Plc now owns 461,850 shares of the company's stock worth $6,431,000 after acquiring an additional 70,398 shares during the period. Finally, Spartan Wealth Advisory Services LLC purchased a new position in Bain Capital Specialty Finance during the first quarter worth approximately $598,000.

Bain Capital Specialty Finance Company Profile

Bain Capital Specialty Finance, Inc NYSE: BCSF is a business development company (BDC) that provides financing to privately owned, middle-market businesses. The company seeks to generate current income and, to a lesser extent, capital appreciation by investing in debt and equity securities.

BCSF primarily invests in first-lien senior secured loans, including unitranche and other directly originated loans. It may also invest in second-lien loans, subordinated debt and equity interests.

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