Runway Growth Finance Corp. (NASDAQ:RWAY) Receives Average Rating of "Hold" from Analysts

Key Points

• Analyst sentiment is neutral: Seven analysts give Runway Growth Finance an average “Hold” rating, with two sells, three holds and two buys. The average 12-month price target is $8.40 versus the stock’s $6.57 opening price.
• Quarterly results beat expectations: The company reported earnings of $0.43 per share and revenue of $37.03 million, exceeding consensus estimates of $0.29 and $31.06 million, respectively.
• Income and insider activity stand out: Runway Growth Finance paid a $0.33 quarterly dividend, equal to a 20.1% annualized yield, while its CEO and CFO collectively purchased 16,000 shares worth $108,640 over the past 90 days.

Shares of Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) have been given an average recommendation of "Hold" by the seven analysts that are covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and two have given a buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $8.40.

RWAY has been the topic of several research reports. Zacks Research raised shares of Runway Growth Finance from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 11th. Weiss Ratings reissued a "sell (d+)" rating on shares of Runway Growth Finance in a research report on Friday, September 11th. B. Riley Financial restated a "buy" rating and set a $11.00 price target (up from $10.00) on shares of Runway Growth Finance in a research note on Thursday, August 13th. Bank of America cut shares of Runway Growth Finance from a "neutral" rating to an "underperform" rating and lowered their price target for the stock from $9.00 to $5.50 in a report on Monday, June 15th. Finally, Wall Street Zen upgraded Runway Growth Finance from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th.

Runway Growth Finance Trading Down 0.5%

Shares of Runway Growth Finance stock opened at $6.57 on Thursday. Runway Growth Finance has a 1 year low of $5.19 and a 1 year high of $10.69. The firm has a market cap of $275.35 million, a PE ratio of 59.73 and a beta of 0.70. The stock has a fifty day moving average price of $6.19 and a 200-day moving average price of $6.39. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.93 and a quick ratio of 0.93.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.14. The company had revenue of $37.03 million for the quarter, compared to the consensus estimate of $31.06 million. Runway Growth Finance had a net margin of 5.82% and a return on equity of 11.73%. Equities research analysts anticipate that Runway Growth Finance will post 1.39 EPS for the current year.

Runway Growth Finance Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Monday, August 17th were paid a $0.33 dividend. The ex-dividend date was Monday, August 17th. This represents a $1.32 annualized dividend and a dividend yield of 20.1%. Runway Growth Finance's payout ratio is presently 1,200.00%.

Insiders Place Their Bets

In other news, CFO Carmela Thomson purchased 8,000 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were purchased at an average price of $6.97 per share, with a total value of $55,760.00. Following 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael Rovner purchased 7,000 shares of the business's stock in a transaction dated Wednesday, September 9th. The shares were purchased at an average price of $6.57 per share, with a total value of $45,990.00. Following the purchase, the chief executive officer directly owned 7,000 shares in the company, valued at $45,990. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 16,000 shares of company stock worth $108,640 in the last ninety days. Insiders own 1.01% of the company's stock.

Hedge Funds Weigh In On Runway Growth Finance

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Perigon Wealth Management LLC bought a new stake in shares of Runway Growth Finance in the second quarter valued at approximately $56,000. WINTON GROUP Ltd bought a new position in Runway Growth Finance in the 2nd quarter worth approximately $84,000. Catalyst Capital Advisors LLC bought a new position in Runway Growth Finance in the 1st quarter worth approximately $96,000. State of Wyoming grew its stake in Runway Growth Finance by 12.4% in the 1st quarter. State of Wyoming now owns 14,921 shares of the company's stock valued at $103,000 after buying an additional 1,646 shares in the last quarter. Finally, Royal Bank of Canada grew its stake in Runway Growth Finance by 16.5% in the 1st quarter. Royal Bank of Canada now owns 21,917 shares of the company's stock valued at $151,000 after buying an additional 3,110 shares in the last quarter. Institutional investors own 64.61% of the company's stock.

Runway Growth Finance Company Profile

Runway Growth Finance Corp. NASDAQ: RWAY is a business development company that provides growth capital to late-stage and growth-oriented companies. The company primarily invests in privately held businesses that may have established products, recurring revenue, and significant growth opportunities but limited access to traditional bank financing.

Runway Growth Finance generally provides venture debt and other secured financing solutions, including senior secured loans and equipment financing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.