Runway Growth Finance Corp. (NASDAQ:RWAY) Receives $8.88 Consensus Target Price from Brokerages

Runway Growth Finance Corp. (NASDAQ:RWAY) has been given an average recommendation of “Hold” by the eight research firms that are covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $8.20.

RWAY has been the topic of a number of research analyst reports. Wall Street Zen lowered shares of Runway Growth Finance from a “hold” rating to a “sell” rating in a report on Saturday, May 16th. JPMorgan Chase & Co. dropped their price objective on shares of Runway Growth Finance from $9.50 to $7.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. Weiss Ratings restated a “hold (c-)” rating on shares of Runway Growth Finance in a research report on Friday, March 27th. B. Riley Financial decreased their target price on shares of Runway Growth Finance from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Tuesday, March 17th. Finally, Wells Fargo & Company decreased their target price on shares of Runway Growth Finance to $6.50 and set an “equal weight” rating for the company in a research report on Thursday, May 14th.

Runway Growth Finance Price Performance

Shares of RWAY opened at $5.60 on Tuesday. The firm has a market capitalization of $237.83 million, a PE ratio of -62.22 and a beta of 0.64. The company has a debt-to-equity ratio of 1.01, a current ratio of 0.44 and a quick ratio of 0.44. Runway Growth Finance has a 1-year low of $5.60 and a 1-year high of $11.40. The company’s fifty day moving average price is $6.48 and its 200-day moving average price is $7.80.

Runway Growth Finance (NASDAQ:RWAY) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.29 earnings per share for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.02). The company had revenue of $29.45 million for the quarter, compared to analysts’ expectations of $29.47 million. Runway Growth Finance had a negative net margin of 2.00% and a positive return on equity of 10.87%. On average, equities research analysts predict that Runway Growth Finance will post 1.23 EPS for the current year.

Runway Growth Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were given a dividend of $0.33 per share. The ex-dividend date was Monday, May 18th. This represents a $1.32 dividend on an annualized basis and a yield of 23.6%. Runway Growth Finance’s payout ratio is currently -1,466.67%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sound Income Strategies LLC raised its position in shares of Runway Growth Finance by 18.6% in the fourth quarter. Sound Income Strategies LLC now owns 1,671,360 shares of the company’s stock worth $15,694,000 after acquiring an additional 261,768 shares during the period. Alpine Global Management LLC acquired a new position in shares of Runway Growth Finance in the third quarter worth about $4,145,000. UBS Group AG raised its position in shares of Runway Growth Finance by 57.0% in the fourth quarter. UBS Group AG now owns 638,503 shares of the company’s stock worth $5,702,000 after acquiring an additional 231,744 shares during the period. Closed End Fund Advisors Inc. acquired a new position in shares of Runway Growth Finance in the fourth quarter worth about $1,259,000. Finally, Sunbeam Capital Management LLC raised its position in shares of Runway Growth Finance by 22.9% in the fourth quarter. Sunbeam Capital Management LLC now owns 24,575 shares of the company’s stock worth $219,000 after acquiring an additional 4,575 shares during the period. 64.61% of the stock is currently owned by institutional investors and hedge funds.

Runway Growth Finance Company Profile

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.