Carmela Thomson Purchases 8,000 Shares of Runway Growth Finance (NASDAQ:RWAY) Stock

Key Points

• CFO Carmela Thomson bought 8,000 Runway Growth Finance shares at an average price of $6.97, increasing her direct ownership by 165.29% to 12,840 shares.
• Runway Growth Finance reported quarterly EPS of $0.43, beating estimates of $0.29, while revenue of $37.03 million also exceeded expectations.
• The company declared a quarterly dividend of $0.33 per share, equivalent to a 20.5% annualized yield; analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $8.40.

Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) CFO Carmela Thomson purchased 8,000 shares of the company's stock in a transaction dated Thursday, August 13th. The stock was bought at an average price of $6.97 per share, with a total value of $55,760.00. Following the completion of the transaction, the chief financial officer directly owned 12,840 shares of the company's stock, valued at approximately $89,494.80. This represents a 165.29% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Runway Growth Finance Price Performance

Shares of NASDAQ:RWAY traded down $0.47 during midday trading on Monday, hitting $6.45. The company had a trading volume of 625,051 shares, compared to its average volume of 582,796. Runway Growth Finance Corp. has a twelve month low of $5.19 and a twelve month high of $10.92. The stock has a market cap of $270.32 million, a price-to-earnings ratio of 58.64 and a beta of 0.66. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.93 and a quick ratio of 0.93. The business's 50-day simple moving average is $5.73 and its 200-day simple moving average is $6.73.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.14. Runway Growth Finance had a return on equity of 11.73% and a net margin of 5.82%.The company had revenue of $37.03 million during the quarter, compared to analysts' expectations of $31.06 million. On average, research analysts predict that Runway Growth Finance Corp. will post 1.31 earnings per share for the current year.

Runway Growth Finance Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Monday, August 17th will be issued a $0.33 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 20.5%. Runway Growth Finance's dividend payout ratio is currently 1,200.00%.

Hedge Funds Weigh In On Runway Growth Finance

A number of hedge funds have recently made changes to their positions in the stock. North Ground Capital lifted its stake in Runway Growth Finance by 102.5% during the fourth quarter. North Ground Capital now owns 1,569,050 shares of the company's stock worth $14,012,000 after purchasing an additional 794,050 shares in the last quarter. Legal & General Group Plc acquired a new stake in shares of Runway Growth Finance in the second quarter valued at $1,561,000. UBS Group AG raised its holdings in shares of Runway Growth Finance by 57.0% in the 4th quarter. UBS Group AG now owns 638,503 shares of the company's stock valued at $5,702,000 after buying an additional 231,744 shares during the period. SBE LLC DBA Cedar Cove Wealth Partners purchased a new stake in shares of Runway Growth Finance in the 4th quarter valued at $1,693,000. Finally, Man Group plc acquired a new position in Runway Growth Finance during the 2nd quarter worth about $1,044,000. Hedge funds and other institutional investors own 64.61% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have weighed in on RWAY. Weiss Ratings lowered shares of Runway Growth Finance from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, June 16th. Bank of America downgraded shares of Runway Growth Finance from a "neutral" rating to an "underperform" rating and cut their price target for the stock from $9.00 to $5.50 in a report on Monday, June 15th. Zacks Research upgraded Runway Growth Finance from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. B. Riley Financial reiterated a "buy" rating and issued a $11.00 price objective (up from $10.00) on shares of Runway Growth Finance in a report on Thursday. Finally, Wall Street Zen upgraded Runway Growth Finance from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Runway Growth Finance has an average rating of "Hold" and an average target price of $8.40.

About Runway Growth Finance

Runway Growth Finance, Inc is a publicly traded business development company that provides customized debt and equity financing solutions to high‐growth, venture‐backed companies. The firm specializes in structuring senior secured loans, unitranche facilities, second‐lien financings, convertible notes and equity co‐investments designed to extend the cash runway for late‐stage companies. Runway’s flexible capital offerings are aimed at supporting technology, life sciences and other innovation‐driven sectors as they pursue growth initiatives and prepare for liquidity events.

Originally launched in 2017 under the name Saratoga Investment Corp., the company rebranded as Runway Growth Finance in 2020 following the acquisition of an established middle‐market credit manager.

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