Runway Growth Finance Corp. (NASDAQ:RWAY) Plans Quarterly Dividend of $0.33

Key Points

• Runway Growth Finance declared a quarterly dividend of $0.33 per share, payable August 31 to shareholders of record on August 17. The dividend implies an annualized yield of approximately 23.0%.
• Dividend coverage may weaken: the current payout ratio is 85.7%, while analysts expect next year’s earnings to support a projected payout ratio of 105.6%.
• Shares opened at $5.75, near the bottom of their 52-week range, after the company reported quarterly EPS of $0.29—below the $0.31 consensus estimate. Institutional investors own 64.61% of the stock.

Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) declared a quarterly dividend on Wednesday, August 5th. Shareholders of record on Monday, August 17th will be paid a dividend of 0.33 per share on Monday, August 31st. This represents a c) annualized dividend and a yield of 23.0%. The ex-dividend date is Monday, August 17th.

Runway Growth Finance has a dividend payout ratio of 85.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Runway Growth Finance to earn $1.25 per share next year, which means the company may not be able to cover its $1.32 annual dividend with an expected future payout ratio of 105.6%.

Runway Growth Finance Stock Down 0.7%

Shares of Runway Growth Finance stock opened at $5.75 on Thursday. The company has a market cap of $244.20 million, a P/E ratio of -63.89 and a beta of 0.66. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.44 and a current ratio of 0.44. Runway Growth Finance has a one year low of $5.19 and a one year high of $11.20. The firm has a fifty day moving average of $5.69 and a two-hundred day moving average of $6.86.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). Runway Growth Finance had a positive return on equity of 10.87% and a negative net margin of 2.00%.The firm had revenue of $29.45 million during the quarter, compared to analyst estimates of $29.46 million. On average, analysts forecast that Runway Growth Finance will post 1.22 earnings per share for the current year.

Institutional Trading of Runway Growth Finance

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. North Ground Capital increased its holdings in Runway Growth Finance by 102.5% in the fourth quarter. North Ground Capital now owns 1,569,050 shares of the company's stock valued at $14,012,000 after buying an additional 794,050 shares in the last quarter. UBS Group AG lifted its position in shares of Runway Growth Finance by 57.0% during the 4th quarter. UBS Group AG now owns 638,503 shares of the company's stock valued at $5,702,000 after acquiring 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 during the 4th quarter worth approximately $1,693,000. Marshall Wace LLP boosted its stake in shares of Runway Growth Finance by 52.6% during the 4th quarter. Marshall Wace LLP now owns 509,225 shares of the company's stock worth $4,547,000 after acquiring an additional 175,468 shares in the last quarter. Finally, Sound Income Strategies LLC boosted its stake in shares of 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 acquiring an additional 171,872 shares in the last quarter. Institutional investors and hedge funds 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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