Runway Growth Finance (NASDAQ:RWAY) Upgraded by Zacks Research to "Hold" Rating

Key Points

• Zacks Research upgraded Runway Growth Finance from “strong sell” to “hold,” but analyst sentiment remains mixed. MarketBeat’s consensus rating is “Hold,” with an average price target of $8.20.
• RWAY shares opened at $6.78, within a 12-month range of $5.19 to $11.12. Bank of America recently downgraded the stock to “underperform” and reduced its price target to $5.50.
• Runway Growth Finance exceeded quarterly expectations, reporting earnings per share of $0.43 versus the $0.29 estimate and revenue of $37.03 million versus expectations of $31.06 million. Institutional investors own approximately 64.61% of the company.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

RWAY has been the topic of a number of other research reports. Weiss Ratings lowered Runway Growth Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 16th. Bank of America cut shares of Runway Growth Finance from a "neutral" rating to an "underperform" rating and lowered their target price for the stock from $9.00 to $5.50 in a research note on Monday, June 15th. Wall Street Zen raised shares of Runway Growth Finance from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Wells Fargo & Company cut 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. 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 MarketBeat, Runway Growth Finance has a consensus rating of "Hold" and a consensus target price of $8.20.

Runway Growth Finance Stock Performance

Shares of RWAY stock opened at $6.78 on Tuesday. Runway Growth Finance has a 12-month low of $5.19 and a 12-month high of $11.12. The business's fifty day simple moving average is $5.70 and its 200-day simple moving average is $6.76. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 1.38. The company has a market cap of $284.15 million, a PE ratio of 61.64 and a beta of 0.66.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.14. Runway Growth Finance had a return on equity of 11.73% and a net margin of 5.82%.The firm had revenue of $37.03 million during the quarter, compared to analysts' expectations of $31.06 million. Analysts expect that Runway Growth Finance will post 1.24 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Runway Growth Finance

A number of institutional investors have recently bought and sold shares of RWAY. Key Capital Management INC purchased a new stake in shares of Runway Growth Finance in the 4th quarter valued at $29,000. Kestra Advisory Services LLC purchased a new position in shares of Runway Growth Finance during the fourth quarter worth $42,000. Raymond James Financial Inc. purchased a new position in shares of Runway Growth Finance during the second quarter worth $51,000. Osaic Holdings Inc. lifted its position in Runway Growth Finance by 92.6% during the second 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 period. Finally, Tower Research Capital LLC TRC lifted its position in Runway Growth Finance by 74,437.5% during the second 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 period. 64.61% of the stock is owned by hedge funds and other institutional investors.

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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