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

Key Points

• BCSF shares hit a new 52-week low, trading as low as $10.51 and down 0.3%, below both the 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the stock carries an average “Reduce” rating, with three Holds and one Sell, and an average price target of $12.60.
• The company reported quarterly EPS of $0.44, beating estimates, but revenue of $47.8 million fell short of forecasts. BCSF also maintains a high dividend yield of 15.9%, though its payout ratio is 169.7%.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report)'s stock price reached a new 52-week low on Wednesday. The stock traded as low as $10.51 and last traded at $10.5260, with a volume of 108,086 shares. The stock had previously closed at $10.62.

Analysts Set New Price Targets

A number of research firms recently weighed in on BCSF. Loop Capital set a $12.50 price target on Bain Capital Specialty Finance in a research note on Friday, September 18th. Wells Fargo & Company decreased their price target on Bain Capital Specialty Finance from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research report on Wednesday, August 12th. Zacks Research lowered shares of Bain Capital Specialty Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 18th. Capital One Financial set a $12.50 target price on shares of Bain Capital Specialty Finance in a report on Friday, September 18th. Finally, Noble Financial started coverage on Bain Capital Specialty Finance in a report on Friday, September 18th. They set a "neutral" rating on the stock. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $12.60.

Bain Capital Specialty Finance Trading Down 0.3%

The stock has a fifty day moving average of $11.65 and a 200-day moving average of $12.45. 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 market cap of $686.97 million, a PE ratio of 10.70 and a beta of 0.60.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $0.44 EPS 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 return on equity of 10.40% and a net margin of 24.22%. Sell-side 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 firm also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.9%. The ex-dividend date of this dividend was Tuesday, September 15th. Bain Capital Specialty Finance's dividend payout ratio is currently 169.70%.

Institutional Trading of Bain Capital Specialty Finance

Hedge funds have recently made changes to their positions in the stock. Motiv8 Investments LLC purchased a new stake in Bain Capital Specialty Finance in the 4th quarter worth $38,000. Corient Private Wealth LP acquired a new stake in Bain Capital Specialty Finance during the 2nd quarter worth $126,000. First Heartland Consultants Inc. acquired a new stake in shares of Bain Capital Specialty Finance in the second quarter valued at about $127,000. Prairiewood Capital LLC purchased a new position in shares of Bain Capital Specialty Finance in the first quarter worth about $126,000. Finally, Sanctuary Advisors LLC purchased a new position in shares of Bain Capital Specialty Finance in the first quarter worth about $126,000.

Bain Capital Specialty Finance Company Profile

Bain Capital Specialty Finance, Inc NYSE: BCSF is a business development company that invests primarily in privately originated senior secured debt of middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation through investments in businesses across a range of industries.

BCSF's portfolio generally includes first-lien and second-lien loans, unitranche debt and other credit investments. It may also make equity investments, including warrants and preferred or common equity, in connection with its lending activities.

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