Runway Growth Finance (NASDAQ:RWAY) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Runway Growth Finance (NASDAQ:RWAY) from a "sell" to a "hold"; analysts are mixed overall (two Buys, four Holds, one Sell) with a consensus target price of $9.00.
• RWAY recently missed quarterly expectations, reporting EPS of $0.32 versus $0.36 expected and revenue of $30.04M versus $31.60M, while the stock trades around $6.42 with a P/E of 6.98 and a 52-week range of $6.36–$11.40.
• Institutional investors own roughly 64.6% of the company, and several funds have added small new positions in recent quarters.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

A number of other equities analysts also recently commented on RWAY. Wells Fargo & Company decreased their target price on Runway Growth Finance from $10.00 to $7.00 and set an "equal weight" rating for the company in a research note on Monday, March 16th. Zacks Research cut Runway Growth Finance from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 17th. B. Riley Financial cut their price target on Runway Growth Finance from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Tuesday, March 17th. Weiss Ratings restated a "hold (c-)" rating on shares of Runway Growth Finance in a research report on Friday, March 27th. Finally, JPMorgan Chase & Co. lowered their price objective on Runway Growth Finance from $9.50 to $7.00 and set a "neutral" rating for the company in a research note on Friday, March 13th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $9.00.

Runway Growth Finance Price Performance

Shares of NASDAQ:RWAY opened at $6.42 on Friday. The company has a 50 day moving average of $7.23 and a two-hundred day moving average of $8.59. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.93. Runway Growth Finance has a 52-week low of $6.36 and a 52-week high of $11.40. The company has a market capitalization of $231.98 million, a price-to-earnings ratio of 6.98 and a beta of 0.72.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last posted its quarterly earnings results on Thursday, March 12th. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.04). Runway Growth Finance had a net margin of 24.79% and a return on equity of 11.52%. The business had revenue of $30.04 million during the quarter, compared to analyst estimates of $31.60 million. As a group, analysts forecast that Runway Growth Finance will post 1.42 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Runway Growth Finance

Hedge funds have recently made changes to their positions in the business. Key Capital Management INC acquired a new position in shares of Runway Growth Finance during the fourth quarter worth approximately $29,000. Kestra Advisory Services LLC acquired a new stake in Runway Growth Finance in the 4th quarter valued at approximately $42,000. Raymond James Financial Inc. bought a new stake in Runway Growth Finance during the 2nd quarter valued at $51,000. Osaic Holdings Inc. boosted its position in Runway Growth Finance by 92.6% during the 2nd quarter. Osaic Holdings Inc. now owns 5,515 shares of the company's stock worth $59,000 after acquiring an additional 2,651 shares during the period. Finally, Tower Research Capital LLC TRC boosted its position in 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 worth $64,000 after acquiring an additional 5,955 shares during the period. 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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