OFS Capital Corporation (NASDAQ:OFS)‘s stock had its “buy” rating restated by equities researchers at National Securities in a report issued on Monday, August 7th. They presently have a $16.00 price target on the investment management company’s stock. National Securities’ price objective suggests a potential upside of 20.03% from the stock’s previous close.
The analysts wrote, “• OFS reported adjusted NII/share of $0.31/share, matching consensus but falling a penny short of our estimate. The earnings drag was to be expected given the sizable equity offering completed in 2Q17. However, the company’s incentive fee was not earned and instead the management company effectively forfeited $22,000 to OFS due to the sequential 3.9% Q/Q decline in NAV/share. The NAV decrease was driven by an additional write-down on non-accrual Community Intervention Services by $1.4 million and My Alarm Center being placed on non-accrual, with a cost of $6.7 million. Subsequent to quarter-end, My Alarm Center was restructured.
• We anticipate NAV/share to steadily increase through the remainder of 2017 and into 2018, as the company continues to focus on more senior secured loans relative to subordinated debt. As a result, we model an economic return of 7.0% for 2017 before improving to 12.0% for 2018.
• The company had a blockbuster $69.1 million of originations during 2Q17, easily outpacing the $19.5 million of repayments. We expect the portfolio to have strong growth through year-end.
• We are revising our 2017 adjusted NII/share estimate to $1.41 from $1.42 and are maintaining our 2018 adjusted NII/share estimate of $1.49. “
Several other equities analysts also recently commented on OFS. Zacks Investment Research downgraded shares of OFS Capital Corporation from a “buy” rating to a “sell” rating in a research note on Thursday, May 11th. Robert W. Baird downgraded shares of OFS Capital Corporation from an “outperform” rating to a “neutral” rating and dropped their price target for the stock from $16.00 to $13.00 in a research note on Monday, August 7th. Two analysts have rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $14.60.
Shares of OFS Capital Corporation (NASDAQ OFS) traded down 1.91% during midday trading on Monday, reaching $13.33. The company’s stock had a trading volume of 30,990 shares. OFS Capital Corporation has a 52 week low of $12.25 and a 52 week high of $15.24. The company has a 50 day moving average price of $13.91 and a 200-day moving average price of $14.27.
OFS Capital Corporation (NASDAQ:OFS) last posted its quarterly earnings results on Friday, August 4th. The investment management company reported $0.33 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.30 by $0.03. The business had revenue of $7.98 million during the quarter, compared to the consensus estimate of $8.53 million. OFS Capital Corporation had a net margin of 31.02% and a return on equity of 9.43%. Equities analysts expect that OFS Capital Corporation will post $1.29 EPS for the current fiscal year.
Several large investors have recently added to or reduced their stakes in the company. Muzinich & Co. Inc. purchased a new stake in OFS Capital Corporation during the first quarter valued at about $1,731,000. Mckinley Capital Management LLC Delaware boosted its stake in OFS Capital Corporation by 306.6% in the first quarter. Mckinley Capital Management LLC Delaware now owns 144,713 shares of the investment management company’s stock valued at $2,053,000 after buying an additional 109,119 shares during the period. Silver Capital Management LLC boosted its stake in OFS Capital Corporation by 39.2% in the first quarter. Silver Capital Management LLC now owns 55,887 shares of the investment management company’s stock valued at $794,000 after buying an additional 15,750 shares during the period. Oxford Asset Management purchased a new stake in OFS Capital Corporation during the first quarter valued at about $370,000. Finally, Hillsdale Investment Management Inc. purchased a new stake in OFS Capital Corporation during the first quarter valued at about $148,000. 25.61% of the stock is owned by institutional investors and hedge funds.
OFS Capital Corporation Company Profile
OFS Capital Corporation (OFS Capital) is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to provide its shareholders with both current income and capital appreciation primarily through debt investments and equity investments. It focuses primarily on middle-market companies in the United States, including senior secured loans, including first-lien, second-lien and unitranche loans, as well as subordinated loans, and warrants and other minority equity securities.
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