Runway Growth Finance (NASDAQ:RWAY) Rating Lowered to “Sell” at Wall Street Zen

Runway Growth Finance (NASDAQ:RWAY) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

A number of other research firms have also issued reports on RWAY. B. Riley Financial lowered their target price on shares of Runway Growth Finance from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Tuesday. Weiss Ratings reissued a “hold (c-)” rating on shares of Runway Growth Finance in a research report on Monday, December 29th. JPMorgan Chase & Co. decreased their price target on shares of Runway Growth Finance from $9.50 to $7.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Zacks Research downgraded Runway Growth Finance from a “hold” rating to a “strong sell” rating in a research report on Tuesday. Finally, Wells Fargo & Company dropped their price objective on Runway Growth Finance from $10.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Monday, March 16th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Runway Growth Finance has an average rating of “Hold” and a consensus price target of $9.60.

Runway Growth Finance Stock Down 2.7%

RWAY opened at $6.84 on Friday. The business has a 50 day moving average price of $8.43 and a 200 day moving average price of $9.23. Runway Growth Finance has a twelve month low of $6.61 and a twelve month high of $11.40. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a market cap of $247.13 million, a P/E ratio of 7.43 and a beta of 0.70.

Runway Growth Finance (NASDAQ:RWAY) last announced 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 company had revenue of $30.04 million for the quarter, compared to analyst estimates of $31.60 million. Research analysts forecast that Runway Growth Finance will post 1.67 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Key Capital Management INC bought a new position in Runway Growth Finance during the fourth quarter worth about $29,000. Kestra Advisory Services LLC bought a new stake in shares of Runway Growth Finance in the 4th quarter valued at approximately $42,000. Raymond James Financial Inc. acquired a new position in shares of Runway Growth Finance in the 2nd quarter worth approximately $51,000. Osaic Holdings Inc. raised its holdings in shares of Runway Growth Finance by 92.6% in the 2nd quarter. Osaic Holdings Inc. now owns 5,515 shares of the company’s stock worth $59,000 after buying an additional 2,651 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its position in shares of 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 buying an additional 5,955 shares during the period. 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.