Runway Growth Finance Corp. (RWAY) - What Are Analysts Saying About This Stock?

Key Points

• Analysts are divided: Seven analysts have a consensus “Hold” rating, split between two Buy, three Hold, and two Sell recommendations. Their average 12-month price target is $8.40.
• Runway Growth Finance reported quarterly EPS of $0.38, beating the $0.34 consensus, and revenue of $40.56 million, above the $37.73 million estimate.
• The company declared a quarterly dividend of $0.33 per share, equivalent to a 21.6% annualized yield; its reported payout ratio is 1,200%, indicating the dividend is exceptionally high relative to earnings.

Shares of Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) have earned a consensus recommendation of "Hold" from the seven analysts that are covering the firm, MarketBeat reports. Two analysts have rated the stock with a sell recommendation, three have given a hold recommendation and two have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $8.40.

RWAY has been the subject of several recent research reports. B. Riley Financial reaffirmed a "buy" rating and issued a $11.00 price objective (up from $10.00) on shares of Runway Growth Finance in a research note on Thursday, August 13th. Wall Street Zen raised Runway Growth Finance from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Zacks Research upgraded shares of Runway Growth Finance from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Runway Growth Finance in a report on Friday, September 11th.

Runway Growth Finance Stock Performance

NASDAQ:RWAY opened at $6.12 on Friday. The firm has a market capitalization of $256.49 million, a PE ratio of 55.64 and a beta of 0.70. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.38. The stock's 50-day simple moving average is $6.53 and its 200 day simple moving average is $6.74. Runway Growth Finance has a twelve month low of $5.19 and a twelve month high of $10.06.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.34 by $0.04. The business had revenue of $40.56 million during the quarter, compared to the consensus estimate of $37.73 million. Runway Growth Finance had a net margin of 5.82% and a return on equity of 11.73%. On average, analysts anticipate that Runway Growth Finance will post 1.39 EPS for the current fiscal year.

Runway Growth Finance Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Tuesday, November 17th will be paid a dividend of $0.33 per share. The ex-dividend date is Tuesday, November 17th. This represents a $1.32 dividend on an annualized basis and a yield of 21.6%. Runway Growth Finance's payout ratio is 1,200.00%.

Insider Buying and Selling at Runway Growth Finance

In other news, CFO Carmela Thomson bought 8,000 shares of the company's stock in a transaction on 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 in the company, valued at $89,494.80. This represents a 165.29% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael Rovner purchased 7,000 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The shares were acquired at an average price of $6.57 per share, for a total transaction of $45,990.00. Following the completion of the acquisition, the chief executive officer directly owned 7,000 shares of the company's stock, valued at $45,990. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased 16,000 shares of company stock valued at $108,640 in the last quarter. 1.01% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Runway Growth Finance

Large investors have recently made changes to their positions in the business. North Ground Capital bought a new position in Runway Growth Finance during the second quarter valued at about $4,084,080. Legal & General Group Plc purchased a new stake in Runway Growth Finance during the second quarter worth about $1,561,000. Man Group plc purchased a new stake in Runway Growth Finance during the second quarter worth about $1,044,000. Bank of America Corp DE bought a new stake in Runway Growth Finance in the second quarter worth about $983,000. Finally, Evanson Financial LLC bought a new stake in Runway Growth Finance in the second quarter worth about $844,000. 64.61% of the stock is owned by hedge funds and other institutional investors.

Runway Growth Finance Company Profile

Runway Growth Finance Corp. is a business development company (BDC) that provides financing to growth-oriented companies, primarily in the technology, life sciences, healthcare, products and services sectors. The company seeks to support businesses that may have limited access to traditional bank financing or require capital to fund expansion, acquisitions, product development and other strategic initiatives.

Its investment activity is centered on senior secured loans, including term loans and other structured debt investments.

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