Michael Rovner Buys 7,000 Shares of Runway Growth Finance (NASDAQ:RWAY) Stock

Key Points

• CEO Michael Rovner purchased 7,000 Runway Growth Finance shares at an average price of $6.57, investing $45,990 and establishing a direct position in the company.
• RWAY shares recently traded near $6.51, well below their 52-week high of $10.69. The company beat quarterly earnings expectations, reporting $0.43 in EPS and $37.03 million in revenue.
• Runway Growth Finance paid a quarterly dividend of $0.33 per share, equivalent to a 20.3% annualized yield, while analysts maintain an overall “Hold” rating with an average price target of $8.40.

Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) CEO Michael Rovner acquired 7,000 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was purchased at an average price of $6.57 per share, for a total transaction of $45,990.00. Following the completion of 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 transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Runway Growth Finance Stock Performance

Shares of RWAY traded down $0.03 during trading hours on Thursday, hitting $6.51. The company's stock had a trading volume of 286,046 shares, compared to its average volume of 568,348. The business has a 50 day simple moving average of $6.08 and a two-hundred day simple moving average of $6.44. Runway Growth Finance Corp. has a 52-week low of $5.19 and a 52-week high of $10.69. 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 company has a market cap of $272.83 million, a price-to-earnings ratio of 59.19 and a beta of 0.70.

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

Runway Growth Finance Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Monday, August 17th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 20.3%. The ex-dividend date was Monday, August 17th. Runway Growth Finance's payout ratio is presently 1,200.00%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Bank of America lowered Runway Growth Finance from a "neutral" rating to an "underperform" rating and reduced their target price for the company from $9.00 to $5.50 in a report on Monday, June 15th. 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. Wall Street Zen upgraded Runway Growth Finance from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Wells Fargo & Company dropped their price objective on Runway Growth Finance to $6.50 and set an "equal weight" rating for the company in a research note on Thursday, May 14th. Finally, B. Riley Financial restated a "buy" rating and set a $11.00 target price (up from $10.00) on shares of Runway Growth Finance in a research report on Thursday, August 13th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $8.40.

Hedge Funds Weigh In On Runway Growth Finance

Institutional investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC purchased a new position in Runway Growth Finance in the fourth quarter worth $42,000. Raymond James Financial Inc. bought a new stake in Runway Growth Finance during the second quarter worth about $51,000. Perigon Wealth Management LLC purchased a new position in shares of Runway Growth Finance in the 2nd quarter worth about $56,000. Osaic Holdings Inc. increased its position in shares of Runway Growth Finance by 92.6% during the 2nd quarter. Osaic Holdings Inc. now owns 5,515 shares of the company's stock valued at $59,000 after purchasing an additional 2,651 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its position in shares of Runway Growth Finance by 74,437.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,963 shares of the company's stock valued at $64,000 after purchasing an additional 5,955 shares during the last quarter. Institutional investors own 64.61% of the company's stock.

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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