OFS Credit (NASDAQ:OCCI) Stock Price Down 4.5% - Here's Why

Key Points

• OFS Credit shares fell 4.5% to about $1.70, with trading volume 69% above average. The decline followed Wall Street Zen’s downgrade of the stock from “hold” to “sell.”
• The company’s latest quarterly results met expectations on earnings at $0.21 per share, but revenue of $8.65 million came in below the $9.42 million consensus estimate.
• OFS Credit announced a monthly dividend of $0.05 per share, equating to an annualized $0.60 payout and a reported 35.3% dividend yield; institutional investors own 23.77% of the company.

Shares of OFS Credit Company, Inc. (NASDAQ:OCCI - Get Free Report) traded down 4.5% on Monday. The stock traded as low as $1.68 and last traded at $1.70. Approximately 341,184 shares traded hands during mid-day trading, an increase of 69% from the average daily volume of 201,379 shares. The stock had previously closed at $1.78.

Analyst Ratings Changes

Separately, Wall Street Zen downgraded OFS Credit from a "hold" rating to a "sell" rating in a research note on Saturday, September 26th.

OFS Credit Stock Performance

The company's 50 day moving average price is $2.38 and its 200-day moving average price is $2.71. The company has a market cap of $49.93 million, a PE ratio of -0.97 and a beta of 0.76.

OFS Credit (NASDAQ:OCCI - Get Free Report) last posted its quarterly earnings results on Thursday, September 17th. The company reported $0.21 EPS for the quarter, hitting analysts' consensus estimates of $0.21. The company had revenue of $8.65 million during the quarter, compared to the consensus estimate of $9.42 million.

OFS Credit Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Friday, January 29th. Shareholders of record on Friday, January 15th will be paid a $0.05 dividend. The ex-dividend date is Friday, January 15th. This represents a $0.60 annualized dividend and a dividend yield of 35.3%. OFS Credit's payout ratio is presently -49.14%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in OCCI. Kestra Advisory Services LLC increased its holdings in OFS Credit by 12.1% in the 1st quarter. Kestra Advisory Services LLC now owns 92,856 shares of the company's stock worth $268,000 after acquiring an additional 10,000 shares during the last quarter. Advisory Solutions Group LLC bought a new stake in OFS Credit in the 2nd quarter valued at about $49,000. Finally, Two Sigma Securities LLC bought a new stake in OFS Credit in the 2nd quarter valued at about $40,000. Hedge funds and other institutional investors own 23.77% of the company's stock.

About OFS Credit

OFS Credit Company, Inc NASDAQ: OCCI is a closed-end investment company that seeks to generate current income and, to a lesser extent, capital appreciation through investments in collateralized loan obligations (CLOs). CLOs are investment vehicles that hold portfolios of primarily senior secured loans made to corporate borrowers.

The company generally invests in CLO equity and subordinated debt tranches, which can provide exposure to the cash flows generated by underlying loan portfolios.

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