OFS Capital (NASDAQ:OFS) Releases Earnings Results, Misses Estimates By $0.03 EPS

OFS Capital (NASDAQ:OFS) issued its quarterly earnings results on Thursday. The investment management company reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.03), Zacks reports. OFS Capital had a positive return on equity of 8.32% and a negative net margin of 95.15%.The business had revenue of $3.57 million for the quarter, compared to analyst estimates of $9.45 million.

OFS Capital Price Performance

Shares of OFS stock traded down $0.21 during trading hours on Friday, hitting $3.84. 143,295 shares of the company’s stock were exchanged, compared to its average volume of 58,101. The stock’s 50-day moving average is $3.72 and its 200-day moving average is $4.68. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.02 and a quick ratio of 0.02. The stock has a market cap of $51.46 million, a price-to-earnings ratio of -1.55 and a beta of 0.92. OFS Capital has a 52 week low of $2.72 and a 52 week high of $9.31.

OFS Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 6th. Stockholders 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 17.7%. The ex-dividend date is Thursday, June 18th. OFS Capital’s dividend payout ratio is presently -27.53%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings cut OFS Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, January 7th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, OFS Capital presently has a consensus rating of “Reduce” and an average target price of $7.00.

Institutional Trading of OFS Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Virtus Investment Advisers LLC increased its position in OFS Capital by 24.0% in the fourth quarter. Virtus Investment Advisers LLC now owns 82,221 shares of the investment management company’s stock worth $391,000 after purchasing an additional 15,935 shares during the period. Royal Bank of Canada increased its position in OFS Capital by 53.3% in the fourth quarter. Royal Bank of Canada now owns 11,500 shares of the investment management company’s stock worth $55,000 after purchasing an additional 4,000 shares during the period. Squarepoint Ops LLC acquired a new stake in OFS Capital in the fourth quarter worth about $202,000. Marshall Wace LLP acquired a new position in OFS Capital in the fourth quarter valued at about $377,000. Finally, Jane Street Group LLC acquired a new position in OFS Capital in the fourth quarter valued at about $66,000. 10.81% of the stock is currently owned by institutional investors and hedge funds.

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.