Bain Capital Specialty Finance (NYSE:BCSF) Reaches New 12-Month Low - What's Next?

Key Points

• BCSF fell to a new 52-week low of $10.95, below its 50-day and 200-day moving averages, signaling continued weakness in the stock.
• Analysts maintain a cautious outlook, with a consensus “Reduce” rating and a $12.60 target price; ratings include three Holds and one Sell.
• The company reported quarterly EPS of $0.44, beating estimates, and paid a $0.42 quarterly dividend—an annualized yield of 15.2%—though its 169.7% payout ratio raises sustainability concerns.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report)'s stock price reached a new 52-week low on Thursday. The company traded as low as $10.95 and last traded at $11.0580, with a volume of 80729 shares changing hands. The stock had previously closed at $11.04.

Analyst Upgrades and Downgrades

BCSF has been the subject of several recent analyst reports. Loop Capital set a $12.50 price objective on shares of Bain Capital Specialty Finance in a research note on Friday, September 18th. Noble Financial initiated coverage on shares of Bain Capital Specialty Finance in a research note on Friday, September 18th. They issued a "neutral" rating for the company. Capital One Financial set a $12.50 price target on Bain Capital Specialty Finance in a research report on Friday, September 18th. Zacks Research lowered Bain Capital Specialty Finance from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 18th. Finally, Jefferies Financial Group set a $13.00 price objective on Bain Capital Specialty Finance in a research report on Monday, August 17th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $12.60.

Bain Capital Specialty Finance Stock Up 0.0%

The company's 50-day moving average is $11.97 and its 200 day moving average is $12.54. The stock has a market capitalization of $716.49 million, a PE ratio of 11.17 and a beta of 0.58. The company has a current ratio of 7.20, a quick ratio of 7.20 and a debt-to-equity ratio of 1.39.

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. The company had revenue of $47.80 million for the quarter, compared to the consensus estimate of $64.44 million. Bain Capital Specialty Finance had a net margin of 24.22% and a return on equity of 10.40%. As a group, analysts anticipate that Bain Capital Specialty Finance, Inc. will post 1.64 EPS for the current year.

Bain Capital Specialty Finance Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th were paid a $0.42 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $1.68 dividend on an annualized basis and a yield of 15.2%. Bain Capital Specialty Finance's dividend payout ratio (DPR) is 169.70%.

Institutional Trading of Bain Capital Specialty Finance

Large investors have recently added to or reduced their stakes in the company. Closed End Fund Advisors Inc. purchased a new stake in Bain Capital Specialty Finance in the 4th quarter worth approximately $5,881,000. Alpine Global Management LLC lifted its stake in shares of Bain Capital Specialty Finance by 232.2% in the 4th quarter. Alpine Global Management LLC now owns 307,641 shares of the company's stock valued at $4,279,000 after purchasing an additional 215,031 shares during the period. BI Asset Management Fondsmaeglerselskab A S grew its position in Bain Capital Specialty Finance by 255.5% during the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 156,337 shares of the company's stock valued at $2,175,000 after buying an additional 112,360 shares during the period. Legal & General Group Plc increased its holdings in 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 valued at $6,431,000 after buying an additional 70,398 shares in the last quarter. Finally, Spartan Wealth Advisory Services LLC acquired a new position in shares of Bain Capital Specialty Finance in the first quarter worth about $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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