Bain Capital Specialty Finance (NYSE:BCSF) Hits New 12-Month Low – Should You Sell?

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) shares reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $10.95 and last traded at $11.1760, with a volume of 774734 shares trading hands. The stock had previously closed at $11.09.

Analyst Ratings Changes

A number of analysts recently commented on BCSF shares. Jefferies Financial Group set a $13.00 price target on Bain Capital Specialty Finance in a research note on Monday, August 17th. Noble Financial assumed coverage on shares of Bain Capital Specialty Finance in a research report on Friday. They set a “neutral” rating on the stock. Loop Capital set a $12.50 price objective on shares of Bain Capital Specialty Finance in a report on Friday. Capital One Financial set a $12.50 target price on shares of Bain Capital Specialty Finance in a research report on Friday. Finally, Keefe, Bruyette & Woods lowered shares of Bain Capital Specialty Finance from an “outperform” rating to a “market perform” rating and cut their target price for the company from $15.00 to $13.00 in a research note on Monday, August 17th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $12.60.

Bain Capital Specialty Finance Trading Up 0.8%

The company has a market cap of $725.25 million, a PE ratio of 11.28 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 stock has a 50 day moving average price of $12.23 and a 200 day moving average price of $12.62.

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

Bain Capital Specialty Finance Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 15.0%. The ex-dividend date is Tuesday, September 15th. Bain Capital Specialty Finance’s payout ratio is 169.70%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Corient Private Wealth LP purchased a new stake in Bain Capital Specialty Finance in the second quarter worth about $126,000. Hennion & Walsh Asset Management Inc. increased its stake in shares of 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 valued at $4,634,000 after purchasing an additional 14,238 shares in the last quarter. First Heartland Consultants Inc. purchased a new position in shares of Bain Capital Specialty Finance during the second quarter valued at approximately $127,000. Confluence Investment Management LLC boosted its position in shares of Bain Capital Specialty Finance by 1.1% in the 2nd quarter. Confluence Investment Management LLC now owns 87,630 shares of the company’s stock worth $1,097,000 after purchasing an additional 946 shares in the last quarter. Finally, Entropy Technologies LP bought a new stake in shares of Bain Capital Specialty Finance in the 1st quarter worth approximately $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.