Bain Capital Specialty Finance (NYSE:BCSF) Sets New 12-Month Low - Time to Sell?

Key Points

• BCSF shares fell to a new 52-week low of $11.50, below both their 50-day ($12.45) and 200-day ($12.73) moving averages. Analysts’ consensus rating is “Reduce,” with an average price target of $12.75.
• The company beat quarterly EPS estimates, reporting $0.44 versus $0.42 expected, but revenue of $47.8 million fell well short of the $64.44 million consensus estimate.
• BCSF declared a quarterly dividend of $0.42, equivalent to a 14.5% annualized yield, but its payout ratio is elevated at 169.7%, potentially raising questions about dividend sustainability.

Bain Capital Specialty Finance, Inc. (NYSE:BCSF - Get Free Report)'s stock price reached a new 52-week low on Wednesday . The company traded as low as $11.50 and last traded at $11.54, with a volume of 75948 shares trading hands. The stock had previously closed at $11.63.

Analyst Upgrades and Downgrades

BCSF has been the topic of a number of recent analyst reports. Capital One Financial set a $13.00 price target on shares of Bain Capital Specialty Finance in a report on Monday, August 17th. Wells Fargo & Company reduced their target price on shares of Bain Capital Specialty Finance from $13.00 to $12.00 and set an "equal weight" rating for the company in a report on Wednesday, August 12th. Keefe, Bruyette & Woods downgraded Bain Capital Specialty Finance from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $15.00 to $13.00 in a research report on Monday, August 17th. Jefferies Financial Group set a $13.00 target price on shares of Bain Capital Specialty Finance in a research report 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 research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $12.75.

Bain Capital Specialty Finance Trading Down 0.2%

The stock's 50 day moving average price is $12.45 and its 200-day moving average price is $12.73. The company has a quick ratio of 7.20, a current ratio of 7.20 and a debt-to-equity ratio of 1.39. The stock has a market capitalization of $752.56 million, a P/E ratio of 11.72 and a beta of 0.58.

Bain Capital Specialty Finance (NYSE:BCSF - Get Free Report) last announced its earnings results on Monday, August 10th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.02. The business had revenue of $47.80 million during 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, equities research analysts expect that Bain Capital Specialty Finance, Inc. will post 1.64 earnings per share for the current year.

Bain Capital Specialty Finance Dividend Announcement

The company 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 $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 14.5%. The ex-dividend date is Tuesday, September 15th. Bain Capital Specialty Finance's dividend payout ratio (DPR) is presently 169.70%.

Institutional Trading of Bain Capital Specialty Finance

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Motiv8 Investments LLC acquired a new position in shares of Bain Capital Specialty Finance in the 4th quarter valued at $38,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in Bain Capital Specialty Finance in the 4th quarter valued at $42,000. BNP Paribas Financial Markets grew its stake in Bain Capital Specialty Finance by 352.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 4,069 shares of the company's stock valued at $58,000 after acquiring an additional 3,169 shares in the last quarter. Quantbot Technologies LP purchased a new stake in shares of Bain Capital Specialty Finance in the second quarter valued at approximately $121,000. Finally, Prairiewood Capital LLC acquired a new stake in shares of Bain Capital Specialty Finance in the 1st quarter worth $126,000.

Bain Capital Specialty Finance Company Profile

Bain Capital Specialty Finance NYSE: BCSF is a closed-end interval fund organized as a specialty finance company. Since commencing operations in March 2017, the company has focused on originating and acquiring debt and equity investments in middle-market companies. It is structured to offer investors access to private credit and special situations strategies that are typically unavailable through traditional public debt markets.

The firm's core business activities include direct lending to U.S.

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