North Ground Capital Purchases New Shares in Runway Growth Finance Corp. $RWAY

Key Points

• North Ground Capital acquired 728,000 shares of Runway Growth Finance in the second quarter, worth approximately $4.08 million, making RWAY 4.9% of its portfolio and its ninth-largest holding.
• Institutional investors own 64.61% of the company, while CFO Carmela Thomson purchased 8,000 shares. Analyst sentiment remains mixed, with a consensus rating of “Hold” and a price target of $8.40.
• Runway Growth Finance reported quarterly EPS of $0.43, exceeding the $0.29 estimate, and revenue of $37.03 million. The company declared a $0.33 quarterly dividend, representing a 19.9% yield, though its payout ratio is listed at 1,200%.

North Ground Capital acquired a new stake in Runway Growth Finance Corp. (NASDAQ:RWAY - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 728,000 shares of the company's stock, valued at approximately $4,084,080,000. Runway Growth Finance comprises approximately 4.9% of North Ground Capital's investment portfolio, making the stock its 9th biggest holding. North Ground Capital owned approximately 1.74% of Runway Growth Finance as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. UBS Group AG grew its holdings in shares of Runway Growth Finance by 57.0% during the fourth quarter. UBS Group AG now owns 638,503 shares of the company's stock worth $5,702,000 after purchasing an additional 231,744 shares during the last quarter. SBE LLC DBA Cedar Cove Wealth Partners bought a new position in shares of Runway Growth Finance in the fourth quarter valued at about $1,693,000. Marshall Wace LLP raised its holdings in shares of Runway Growth Finance by 52.6% in the fourth quarter. Marshall Wace LLP now owns 509,225 shares of the company's stock valued at $4,547,000 after buying an additional 175,468 shares during the last quarter. Sound Income Strategies LLC lifted its position in Runway Growth Finance by 10.3% during the 1st quarter. Sound Income Strategies LLC now owns 1,843,232 shares of the company's stock worth $12,534,000 after buying an additional 171,872 shares in the last quarter. Finally, Bulldog Investors LLP lifted its position in Runway Growth Finance by 15.3% during the 4th quarter. Bulldog Investors LLP now owns 1,200,872 shares of the company's stock worth $10,724,000 after buying an additional 159,588 shares in the last quarter. Institutional investors and hedge funds own 64.61% of the company's stock.

Insider Activity at Runway Growth Finance

In other Runway Growth Finance news, CFO Carmela Thomson purchased 8,000 shares of the stock in a transaction dated Thursday, August 13th. The stock was bought at an average price of $6.97 per share, for a total transaction 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 SEC, which is available at the SEC website. 1.01% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Zacks Research raised shares of Runway Growth Finance from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 11th. Wall Street Zen raised shares of Runway Growth Finance from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings lowered shares of Runway Growth Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, June 16th. Wells Fargo & Company decreased their price target on shares of Runway Growth Finance to $6.50 and set an "equal weight" rating on the stock in a research note on Thursday, May 14th. Finally, Bank of America lowered shares of Runway Growth Finance from a "neutral" rating to an "underperform" rating and lowered their price target for the company from $9.00 to $5.50 in a report on Monday, June 15th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $8.40.

Runway Growth Finance Stock Performance

Shares of RWAY opened at $6.64 on Monday. The stock's fifty day simple moving average is $5.79 and its 200-day simple moving average is $6.64. The firm has a market capitalization of $278.28 million, a PE ratio of 60.37 and a beta of 0.66. Runway Growth Finance Corp. has a 12-month low of $5.19 and a 12-month high of $10.92. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.38.

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

Runway Growth Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 19.9%. The ex-dividend date of this dividend is Monday, August 17th. Runway Growth Finance's dividend payout ratio (DPR) is 1,200.00%.

Runway Growth Finance Company Profile

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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