OFS Capital (NASDAQ:OFS) Stock Breaks Below 200 Day Moving Average After Earnings Miss

Key Points

• OFS Capital shares fell below their 200-day moving average after the company reported quarterly earnings of $0.05 per share, below the $0.07 analyst consensus, while revenue of $5.94 million also missed estimates.
• The company declared a quarterly dividend of $0.17 per share, equivalent to $0.68 annually and an approximately 18.9% dividend yield.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and a $7.00 average price target; institutional investors own 10.81% of the stock.

OFS Capital Corporation (NASDAQ:OFS - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a two hundred day moving average of $3.81 and traded as low as $3.49. OFS Capital shares last traded at $3.59, with a volume of 144,265 shares trading hands.

The investment management company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.07 by ($0.02). The firm had revenue of $5.94 million for the quarter, compared to the consensus estimate of $6.59 million. OFS Capital had a negative net margin of 91.39% and a positive return on equity of 5.87%.

OFS Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Friday, December 18th will be issued a dividend of $0.17 per share. The ex-dividend date is Friday, December 18th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 18.9%. OFS Capital's dividend payout ratio is presently -41.21%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on OFS. Weiss Ratings restated a "sell (d)" rating on shares of OFS Capital in a report on Tuesday, September 1st. Zacks Research upgraded OFS Capital to a "hold" rating in a research note on Monday, October 5th. Finally, Wall Street Zen raised OFS Capital to a "hold" rating in a report on Saturday, October 10th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, OFS Capital currently has a consensus rating of "Reduce" and an average price target of $7.00.

Institutional Trading of OFS Capital

An institutional investor recently raised its position in OFS Capital stock. Concorde Asset Management LLC increased its stake in shares of OFS Capital Corporation (NASDAQ:OFS - Free Report) by 85.4% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 33,550 shares of the investment management company's stock after purchasing an additional 15,450 shares during the period. Concorde Asset Management LLC owned approximately 0.25% of OFS Capital worth $124,000 as of its most recent filing with the Securities & Exchange Commission. 10.81% of the stock is currently owned by institutional investors and hedge funds.

OFS Capital Price Performance

The stock has a market capitalization of $48.11 million, a PE ratio of -1.70 and a beta of 0.86. The firm's fifty day moving average price is $3.84 and its two-hundred day moving average price is $3.81. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.33.

OFS Capital Company Profile

OFS Capital Corporation NASDAQ: OFS is a business development company that provides financing to privately owned U.S. companies. The company primarily invests in lower middle-market businesses, which are generally companies that may have limited access to traditional bank financing or public capital markets.

OFS Capital's investment activities focus on providing secured loans, subordinated debt and, to a lesser extent, equity investments. Its financing may support acquisitions, recapitalizations, refinancing, growth initiatives and other corporate activities.

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