Bain Capital Specialty Finance (NYSE:BCSF) Reaches New 52-Week Low – Should You Sell?

Shares of Bain Capital Specialty Finance, Inc. (NYSE:BCSF) hit a new 52-week low during trading on Wednesday. The stock traded as low as $10.51 and last traded at $10.5260, with a volume of 108,086 shares. The stock had previously closed at $10.62.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on BCSF. Zacks Research lowered Bain Capital Specialty Finance from a “hold” rating to a “strong sell” rating in a research report on Tuesday, August 18th. Loop Capital set a $12.50 target price on Bain Capital Specialty Finance in a report on Friday, September 18th. Wells Fargo & Company cut their price objective on shares of Bain Capital Specialty Finance from $13.00 to $12.00 and set an “equal weight” rating on the stock in a report on Wednesday, August 12th. Noble Financial initiated coverage on shares of Bain Capital Specialty Finance in a research report on Friday, September 18th. They set a “neutral” rating on the stock. Finally, Capital One Financial set a $12.50 target price on Bain Capital Specialty Finance in a report on Friday, September 18th. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $12.60.

Bain Capital Specialty Finance Price Performance

The stock has a fifty day moving average of $11.65 and a two-hundred day moving average of $12.45. The company has a current ratio of 7.20, a quick ratio of 7.20 and a debt-to-equity ratio of 1.39. The stock has a market capitalization of $686.97 million, a price-to-earnings ratio of 10.70 and a beta of 0.60.

Bain Capital Specialty Finance (NYSE:BCSF) last announced its quarterly earnings data on Monday, August 10th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.42 by $0.02. Bain Capital Specialty Finance had a net margin of 24.22% and a return on equity of 10.40%. The firm had revenue of $47.80 million for the quarter, compared to analysts’ expectations of $64.44 million. As a group, equities research analysts forecast that Bain Capital Specialty Finance, Inc. will post 1.64 earnings per share for the current year.

Bain Capital Specialty Finance Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th were given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.9%. The ex-dividend date of this dividend was Tuesday, September 15th. Bain Capital Specialty Finance’s dividend payout ratio (DPR) is 169.70%.

Hedge Funds Weigh In On Bain Capital Specialty Finance

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Spartan Wealth Advisory Services LLC purchased a new stake in shares of Bain Capital Specialty Finance during the 1st quarter worth $598,000. Alpine Global Management LLC grew its stake in Bain Capital Specialty Finance by 232.2% in the fourth quarter. Alpine Global Management LLC now owns 307,641 shares of the company’s stock valued at $4,279,000 after purchasing an additional 215,031 shares during the last quarter. Lido Advisors LLC grew its stake in Bain Capital Specialty Finance by 5.5% in the first quarter. Lido Advisors LLC now owns 54,238 shares of the company’s stock valued at $673,000 after purchasing an additional 2,813 shares during the last quarter. Motiv8 Investments LLC bought a new position in Bain Capital Specialty Finance in the fourth quarter worth about $38,000. Finally, Independent Financial Group LLC bought a new position in Bain Capital Specialty Finance in the first quarter worth about $415,000.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc (NYSE: BCSF) is a business development company that invests primarily in privately originated senior secured debt of middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation through investments in businesses across a range of industries.

BCSF’s portfolio generally includes first-lien and second-lien loans, unitranche debt and other credit investments. It may also make equity investments, including warrants and preferred or common equity, in connection with its lending activities.