Wall Street Zen Downgrades OFS Capital (NASDAQ:OFS) to Sell

Key Points

• Wall Street Zen downgraded OFS Capital from "hold" to "sell" in a new research report.
• The stock was trading down slightly, opening at $3.89, with a market cap of about $52.13 million and a 12-month range of $2.72 to $9.31.
• OFS Capital recently reported weaker-than-expected quarterly results, posting $0.18 EPS versus the $0.21 estimate and revenue of $3.57 million versus the expected $9.45 million.

OFS Capital (NASDAQ:OFS - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

OFS Capital Trading Down 0.3%

NASDAQ:OFS opened at $3.89 on Friday. The company has a market cap of $52.13 million, a P/E ratio of -1.39 and a beta of 0.92. The company has a quick ratio of 0.02, a current ratio of 0.04 and a debt-to-equity ratio of 0.49. OFS Capital has a twelve month low of $2.72 and a twelve month high of $9.31. The business has a 50 day moving average price of $3.71 and a two-hundred day moving average price of $4.57.

OFS Capital (NASDAQ:OFS - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The investment management company reported $0.18 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.03). The company had revenue of $3.57 million during the quarter, compared to analyst estimates of $9.45 million. OFS Capital had a negative net margin of 95.15% and a positive return on equity of 8.74%.

Institutional Investors Weigh In On OFS Capital

Large investors have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in shares of OFS Capital by 53.3% in the 4th quarter. Royal Bank of Canada now owns 11,500 shares of the investment management company's stock valued at $55,000 after buying an additional 4,000 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of OFS Capital by 245.3% in the 4th quarter. Bank of America Corp DE now owns 7,079 shares of the investment management company's stock valued at $57,000 after buying an additional 5,029 shares during the last quarter. Jane Street Group LLC acquired a new stake in shares of OFS Capital in the 4th quarter valued at approximately $66,000. Squarepoint Ops LLC acquired a new stake in shares of OFS Capital in the 4th quarter valued at approximately $202,000. Finally, Marshall Wace LLP acquired a new stake in shares of OFS Capital in the 4th quarter valued at approximately $377,000. Institutional investors and hedge funds own 10.81% of the company's stock.

OFS Capital Company Profile

OFS Capital Corporation NASDAQ: OFS is a business development company (BDC) that provides customized debt and equity financing solutions to U.S. middle-market companies. As an externally managed BDC, OFS Capital focuses on sponsoring capital structures that support growth initiatives, recapitalizations, acquisitions and other strategic transactions. The firm targets companies that demonstrate strong cash flow potential and scalable business models across a range of industries.

The company's investment portfolio typically includes senior secured loans, unitranche facilities, mezzanine debt and equity co-investments.

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