Bain Capital Specialty Finance (NYSE:BCSF) Sets New 1-Year Low - Here's Why

Key Points

• BCSF hit a new 52-week low, trading as low as $10.95 before recovering slightly; its 50-day and 200-day moving averages stood at $12.23 and $12.62, respectively.
• Analyst sentiment has weakened, with recent downgrades and an average rating of “Reduce” alongside an average price target of $12.60.
• The company reported quarterly EPS of $0.44, beating estimates of $0.42, but revenue fell short of expectations. BCSF maintained its $0.42 quarterly dividend, implying a roughly 15% annualized yield and a payout ratio above 169%.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report)'s stock price reached a new 52-week low on Monday . The company traded as low as $10.95 and last traded at $11.1760, with a volume of 774734 shares traded. The stock had previously closed at $11.09.

Analyst Upgrades and Downgrades

BCSF has been the topic of a number of recent research reports. Noble Financial started coverage on shares of Bain Capital Specialty Finance in a research report on Friday. They set a "neutral" rating on the stock. Keefe, Bruyette & Woods cut shares of Bain Capital Specialty Finance from an "outperform" rating to a "market perform" rating and cut their price objective for the company from $15.00 to $13.00 in a research note on Monday, August 17th. Jefferies Financial Group set a $13.00 target price on shares of Bain Capital Specialty Finance in a report on Monday, August 17th. Zacks Research cut shares of Bain Capital Specialty Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 18th. Finally, Wells Fargo & Company lowered their price target on shares of Bain Capital Specialty Finance from $13.00 to $12.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 12th. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and an average target price of $12.60.

Bain Capital Specialty Finance Trading Up 0.8%

The firm has a 50-day moving average of $12.23 and a 200-day moving average of $12.62. 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 firm has a market capitalization of $725.25 million, a P/E ratio of 11.28 and a beta of 0.58.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported $0.44 earnings per share for the quarter, beating 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 firm had revenue of $47.80 million during the quarter, compared to the consensus estimate of $64.44 million. On average, equities research analysts anticipate that Bain Capital Specialty Finance, Inc. will post 1.64 EPS for the current fiscal year.

Bain Capital Specialty Finance Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.68 annualized dividend and a yield of 15.0%. Bain Capital Specialty Finance's dividend payout ratio is presently 169.70%.

Hedge Funds Weigh In On Bain Capital Specialty Finance

Hedge funds have recently modified their holdings of the company. Corient Private Wealth LP bought a new position in shares of Bain Capital Specialty Finance during the second quarter valued at about $126,000. Hennion & Walsh Asset Management Inc. increased its holdings in Bain Capital Specialty Finance by 4.0% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 370,141 shares of the company's stock valued at $4,634,000 after purchasing an additional 14,238 shares during the period. First Heartland Consultants Inc. bought a new position in Bain Capital Specialty Finance during the 2nd quarter valued at approximately $127,000. Confluence Investment Management LLC raised its position in Bain Capital Specialty Finance by 1.1% during the 2nd quarter. Confluence Investment Management LLC now owns 87,630 shares of the company's stock valued at $1,097,000 after purchasing an additional 946 shares during the last quarter. Finally, Entropy Technologies LP purchased a new stake in Bain Capital Specialty Finance in the 1st quarter worth approximately $266,000.

About Bain Capital Specialty Finance

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.