Bain Capital Specialty Finance (NYSE:BCSF) Sets New 1-Year Low – Should You Sell?

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) reached a new 52-week low on Tuesday . The stock traded as low as $11.09 and last traded at $11.0970, with a volume of 2801 shares changing hands. The stock had previously closed at $11.44.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Zacks Research lowered Bain Capital Specialty Finance from a “hold” rating to a “strong sell” rating in a research note on Tuesday, August 18th. Wells Fargo & Company cut their target price on shares of Bain Capital Specialty Finance from $13.00 to $12.00 and set an “equal weight” rating on the stock in a research note on Wednesday, August 12th. Capital One Financial set a $13.00 price objective on shares of Bain Capital Specialty Finance in a research report on Monday, August 17th. Jefferies Financial Group set a $13.00 price target on shares of Bain Capital Specialty Finance in a research note on Monday, August 17th. Finally, Keefe, Bruyette & Woods lowered shares of Bain Capital Specialty Finance from an “outperform” rating to a “market perform” rating and lowered their price objective for the company from $15.00 to $13.00 in a research report on Monday, August 17th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $12.75.

Bain Capital Specialty Finance Stock Down 3.2%

The stock has a market capitalization of $718.69 million, a PE ratio of 11.18 and a beta of 0.58. 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 firm has a 50 day moving average of $12.35 and a two-hundred day moving average of $12.68.

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

Bain Capital Specialty Finance Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 15.2%. The ex-dividend date of this dividend is Tuesday, September 15th. Bain Capital Specialty Finance’s dividend payout ratio (DPR) is currently 169.70%.

Hedge Funds Weigh In On Bain Capital Specialty Finance

Institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LP acquired a new position in Bain Capital Specialty Finance in the second quarter valued at $126,000. Hennion & Walsh Asset Management Inc. grew its stake in Bain Capital Specialty Finance by 4.0% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 370,141 shares of the company’s stock worth $4,634,000 after buying an additional 14,238 shares during the period. First Heartland Consultants Inc. acquired a new position in shares of Bain Capital Specialty Finance during the second quarter worth about $127,000. Confluence Investment Management LLC raised its holdings in shares of Bain Capital Specialty Finance by 1.1% during the 2nd quarter. Confluence Investment Management LLC now owns 87,630 shares of the company’s stock valued at $1,097,000 after buying an additional 946 shares during the period. Finally, Entropy Technologies LP purchased a new position in shares of Bain Capital Specialty Finance in the first quarter valued at $266,000.

About Bain Capital Specialty Finance

Bain Capital Specialty Finance, Inc (NYSE: BCSF) is a business development company (BDC) that provides financing to privately owned, middle-market businesses. The company seeks to generate current income and, to a lesser extent, capital appreciation by investing in debt and equity securities.

BCSF primarily invests in first-lien senior secured loans, including unitranche and other directly originated loans. It may also invest in second-lien loans, subordinated debt and equity interests.