OFS Capital (NASDAQ:OFS) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

OFS Capital (NASDAQ:OFS) released its earnings results on Thursday. The investment management company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.06), Zacks reports. The firm had revenue of $11.99 million during the quarter, compared to analyst estimates of $7.87 million. OFS Capital had a positive return on equity of 7.30% and a negative net margin of 62.24%.

OFS Capital Trading Up 2.1%

OFS traded up $0.07 during midday trading on Friday, hitting $3.36. The company’s stock had a trading volume of 31,971 shares, compared to its average volume of 44,260. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 0.49. The firm has a market cap of $45.02 million, a P/E ratio of -2.04 and a beta of 0.84. The firm has a 50-day moving average price of $3.53 and a two-hundred day moving average price of $3.83. OFS Capital has a 52-week low of $2.72 and a 52-week high of $8.99.

OFS Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, October 5th. Shareholders of record on Friday, September 18th will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 20.2%. The ex-dividend date of this dividend is Friday, September 18th. OFS Capital’s dividend payout ratio (DPR) is presently -41.21%.

Institutional Inflows and Outflows

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

Wall Street Analyst Weigh In

Several brokerages have commented on OFS. Weiss Ratings restated a “sell (d)” rating on shares of OFS Capital in a research report on Thursday, June 4th. Wall Street Zen raised shares of OFS Capital from a “sell” rating to a “hold” rating in a report on Sunday, May 17th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $7.00.

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.