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

Key Points

• BCSF shares fell to a new 52-week low of $10.05, down 1.9% from the prior close, with the stock trading below both its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $12.60; Keefe, Bruyette & Woods downgraded the stock to “market perform” and cut its target to $13.00.
• The company declared a quarterly dividend of $0.42 per share, equating to an annualized 16.7% yield, although its 169.7% payout ratio exceeds reported earnings.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $10.05 and last traded at $10.0650, with a volume of 533,219 shares trading hands. The stock had previously closed at $10.26.

Analyst Ratings Changes

A number of research analysts recently commented on BCSF shares. Loop Capital set a $12.50 target price on Bain Capital Specialty Finance in a research note on Friday, September 18th. Jefferies Financial Group set a $13.00 price target on shares of Bain Capital Specialty Finance in a research note on Monday, August 17th. Keefe, Bruyette & Woods downgraded shares of Bain Capital Specialty Finance from an "outperform" rating to a "market perform" rating and decreased their price target for the stock from $15.00 to $13.00 in a research note on Monday, August 17th. Capital One Financial set a $12.50 price target on shares of Bain Capital Specialty Finance in a report on Friday, September 18th. Finally, Wells Fargo & Company dropped their price objective 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. Four analysts have rated the stock with a Hold rating. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $12.60.

Bain Capital Specialty Finance Trading Down 1.9%

The company has a 50-day simple moving average of $11.44 and a 200-day simple moving average of $12.39. 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 stock has a market cap of $652.92 million, a P/E ratio of 10.17 and a beta of 0.60.

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

Bain Capital Specialty Finance Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th were issued a dividend of $0.42 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.68 dividend on an annualized basis and a yield of 16.7%. Bain Capital Specialty Finance's dividend payout ratio is currently 169.70%.

Institutional Investors Weigh In On Bain Capital Specialty Finance

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pension & Wealth Management Advisors Inc. raised its stake in shares of Bain Capital Specialty Finance by 2,678.5% in the third quarter. Pension & Wealth Management Advisors Inc. now owns 3,362 shares of the company's stock worth $37,000 after acquiring an additional 3,241 shares during the last quarter. State of Alaska Department of Revenue acquired a new position in shares of Bain Capital Specialty Finance during the third quarter worth approximately $28,000. Curated Wealth Partners LLC bought a new stake in shares of Bain Capital Specialty Finance during the third quarter valued at approximately $1,104,000. Columbus Macro LLC grew its stake in shares of Bain Capital Specialty Finance by 42.2% during the third quarter. Columbus Macro LLC now owns 641,723 shares of the company's stock valued at $7,085,000 after purchasing an additional 190,414 shares during the last quarter. Finally, First Heartland Consultants Inc. grew its stake in shares of Bain Capital Specialty Finance by 15.6% during the third quarter. First Heartland Consultants Inc. now owns 11,709 shares of the company's stock valued at $129,000 after purchasing an additional 1,581 shares during the last quarter.

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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