Runway Growth Finance Corp. (NASDAQ:RWAY) Sees Significant Drop in Short Interest

Key Points

• Short interest in Runway Growth Finance Corp. decreased by 28.1% in August, totaling 1,610,000 shares as of August 31st.
• The company reported earnings of $0.38 per share, missing expectations slightly, while revenue reached $35.15 million for the quarter.
• Runway Growth Finance has increased its quarterly dividend to $0.36, yielding 14.1%, marking a significant rise from the previous dividend of $0.03.

Runway Growth Finance Corp. (NASDAQ:RWAY - Get Free Report) was the recipient of a significant decrease in short interest in the month of August. As of August 31st, there was short interest totaling 1,610,000 shares, a decrease of 28.1% from the August 15th total of 2,240,000 shares. Currently, 4.5% of the company's shares are sold short. Based on an average daily volume of 276,400 shares, the days-to-cover ratio is presently 5.8 days. Based on an average daily volume of 276,400 shares, the days-to-cover ratio is presently 5.8 days. Currently, 4.5% of the company's shares are sold short.

Analyst Ratings Changes

RWAY has been the subject of a number of research analyst reports. B. Riley raised their price target on Runway Growth Finance from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Monday, August 11th. LADENBURG THALM/SH SH raised Runway Growth Finance to a "hold" rating in a research note on Monday, August 11th. Wells Fargo & Company reissued an "equal weight" rating and set a $9.50 price objective (down previously from $10.00) on shares of Runway Growth Finance in a research report on Wednesday, May 28th. Finally, UBS Group reissued a "buy" rating and set a $12.50 price objective (up previously from $11.50) on shares of Runway Growth Finance in a research report on Wednesday, July 16th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Runway Growth Finance has a consensus rating of "Moderate Buy" and an average price target of $11.00.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Allium Financial Advisors LLC purchased a new stake in shares of Runway Growth Finance during the 1st quarter worth approximately $10,568,000. Cambridge Investment Research Advisors Inc. purchased a new stake in shares of Runway Growth Finance during the 1st quarter worth approximately $4,551,000. Millennium Management LLC raised its holdings in shares of Runway Growth Finance by 151.9% during the 4th quarter. Millennium Management LLC now owns 443,085 shares of the company's stock worth $4,856,000 after acquiring an additional 267,220 shares in the last quarter. North Ground Capital raised its holdings in shares of Runway Growth Finance by 23.9% during the 1st quarter. North Ground Capital now owns 1,050,000 shares of the company's stock worth $10,868,000 after acquiring an additional 202,338 shares in the last quarter. Finally, Evanson Asset Management LLC purchased a new stake in shares of Runway Growth Finance during the 2nd quarter worth approximately $1,615,000. 64.61% of the stock is owned by hedge funds and other institutional investors.

Runway Growth Finance Stock Performance

Shares of Runway Growth Finance stock traded up $0.10 during trading hours on Friday, reaching $10.57. 365,414 shares of the stock traded hands, compared to its average volume of 213,661. The company has a 50 day moving average price of $10.78 and a 200 day moving average price of $10.27. The firm has a market capitalization of $382.85 million, a price-to-earnings ratio of 5.56 and a beta of 0.70. Runway Growth Finance has a one year low of $8.35 and a one year high of $11.73. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.03.

Runway Growth Finance (NASDAQ:RWAY - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). The company had revenue of $35.15 million for the quarter, compared to the consensus estimate of $34.27 million. Runway Growth Finance had a net margin of 51.03% and a return on equity of 11.86%. On average, equities research analysts expect that Runway Growth Finance will post 1.67 earnings per share for the current fiscal year.

Runway Growth Finance Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Monday, August 18th were issued a $0.36 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $1.44 dividend on an annualized basis and a yield of 13.6%. This is a boost from Runway Growth Finance's previous quarterly dividend of $0.03. Runway Growth Finance's payout ratio is presently 69.47%.

Runway Growth Finance Company Profile

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors.