OFS Capital (NASDAQ:OFS) Stock Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• OFS Capital fell below its 200-day moving average, trading as low as $3.55 and last at $3.59, versus a 200-day average of $3.76.
• The company missed quarterly estimates, reporting EPS of $0.05 versus $0.07 expected and revenue of $5.94 million versus $6.59 million; analysts’ average rating is “Reduce.”
• OFS declared a quarterly dividend of $0.17, equivalent to an annualized yield of 18.9%; its payout ratio is negative.

OFS Capital Corporation (NASDAQ:OFS - Get Free Report) crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $3.76 and traded as low as $3.55. OFS Capital shares last traded at $3.59, with a volume of 92,688 shares.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on OFS. Weiss Ratings reiterated a "sell (d)" rating on shares of OFS Capital in a research note on Tuesday, September 1st. Zacks Research raised shares of OFS Capital to a "hold" rating in a report on Monday, October 5th. Finally, Wall Street Zen upgraded shares of OFS Capital to a "hold" rating in a research report on Saturday, October 10th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce".

OFS Capital Stock Down 6.5%

The company has a quick ratio of 0.05, a current ratio of 0.05 and a debt-to-equity ratio of 0.27. The company has a market cap of $48.11 million, a price-to-earnings ratio of -1.70 and a beta of 0.85. The stock has a fifty day moving average price of $3.85 and a two-hundred day moving average price of $3.76.

OFS Capital (NASDAQ:OFS - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The investment management company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.02). OFS Capital had a negative net margin of 91.39% and a positive return on equity of 6.09%. The business had revenue of $5.94 million during the quarter, compared to analyst estimates of $6.59 million. As a group, sell-side analysts expect that OFS Capital Corporation will post 0.50 EPS for the current year.

OFS Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Friday, December 18th will be issued a $0.17 dividend. The ex-dividend date of this dividend is Friday, December 18th. This represents a $0.68 dividend on an annualized basis and a yield of 18.9%. OFS Capital's payout ratio is currently -32.23%.

Institutional Inflows and Outflows

An institutional investor recently raised its stake in OFS Capital stock. Concorde Asset Management LLC increased its position in shares of OFS Capital Corporation (NASDAQ:OFS - Free Report) by 85.4% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 33,550 shares of the investment management company's stock after purchasing an additional 15,450 shares during the quarter. Concorde Asset Management LLC owned 0.25% of OFS Capital worth $124,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 10.81% of the company's stock.

About OFS Capital

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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