OFS Capital (NASDAQ:OFS) Share Price Crosses Below 200 Day Moving Average – Should You Sell?

OFS Capital Corporation (NASDAQ:OFS)’s stock price crossed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $4.21 and traded as low as $3.35. OFS Capital shares last traded at $3.52, with a volume of 131,356 shares.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised shares of OFS Capital from a “sell” rating to a “hold” rating in a research note on Sunday, May 17th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus price target of $7.00.

OFS Capital Trading Down 3.4%

The company has a debt-to-equity ratio of 0.49, a current ratio of 0.04 and a quick ratio of 0.04. The company’s fifty day moving average is $3.64 and its 200-day moving average is $4.20. The stock has a market cap of $45.55 million, a PE ratio of -1.22 and a beta of 0.86.

OFS Capital (NASDAQ:OFS) last issued its earnings results on Thursday, April 30th. The investment management company reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.03). OFS Capital had a positive return on equity of 8.74% and a negative net margin of 95.15%.The business had revenue of $3.57 million for the quarter, compared to analysts’ expectations of $9.45 million.

OFS Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 6th. Investors of record on Friday, June 19th will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 20.0%. The ex-dividend date of this dividend is Thursday, June 18th. OFS Capital’s dividend payout ratio (DPR) is -24.37%.

Institutional Trading of OFS Capital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OFS. Marshall Wace LLP acquired a new stake in OFS Capital during the fourth quarter valued at $377,000. Squarepoint Ops LLC acquired a new stake in OFS Capital during the fourth quarter valued at $202,000. Concorde Asset Management LLC acquired a new stake in OFS Capital during the first quarter valued at $64,000. Virtus Investment Advisers LLC grew its position in OFS Capital by 24.0% during the fourth quarter. Virtus Investment Advisers LLC now owns 82,221 shares of the investment management company’s stock valued at $391,000 after buying an additional 15,935 shares during the period. Finally, Jane Street Group LLC acquired a new stake in OFS Capital during the fourth quarter valued at $66,000. 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 (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.