Shares of Capitala Finance Corp. (NASDAQ:CPTA) hit a new 52-week low during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $11.31 and last traded at $11.17, with a volume of 293,634 shares. The stock had previously closed at $12.81.
The investment management company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.37 by $0.33. The business had revenue of $12.36 million for the quarter, compared to analyst estimates of $15.11 million. Capitala Finance Corp. had a net margin of 27.75% and a return on equity of 11.06%.
The firm also recently announced a monthly dividend, which will be paid on Wednesday, August 30th. Stockholders of record on Wednesday, August 23rd will be paid a dividend of $0.13 per share. The ex-dividend date is Monday, August 21st. This represents a $1.56 annualized dividend and a dividend yield of 12.18%. Capitala Finance Corp.’s dividend payout ratio is presently 135.65%.
CPTA has been the subject of several recent analyst reports. Jefferies Group LLC restated a “buy” rating and set a $17.00 target price on shares of Capitala Finance Corp. in a research note on Wednesday, April 19th. Keefe, Bruyette & Woods restated a “hold” rating and set a $15.00 target price on shares of Capitala Finance Corp. in a research note on Friday, April 28th. FBR & Co raised their target price on Capitala Finance Corp. from $14.00 to $15.00 and gave the company a “market perform” rating in a research note on Tuesday, May 9th. Zacks Investment Research downgraded Capitala Finance Corp. from a “hold” rating to a “sell” rating in a research note on Tuesday, May 9th. Finally, Wunderlich upgraded Capitala Finance Corp. from a “hold” rating to a “buy” rating and raised their target price for the company from $14.50 to $15.50 in a research note on Monday, May 15th. Seven investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $15.44.
Institutional investors have recently modified their holdings of the company. Sumitomo Mitsui Asset Management Company LTD boosted its position in shares of Capitala Finance Corp. by 74.6% in the first quarter. Sumitomo Mitsui Asset Management Company LTD now owns 364,592 shares of the investment management company’s stock valued at $5,235,000 after buying an additional 155,815 shares during the last quarter. UBS Group AG boosted its position in shares of Capitala Finance Corp. by 15.0% in the first quarter. UBS Group AG now owns 436,838 shares of the investment management company’s stock valued at $6,273,000 after buying an additional 56,890 shares during the last quarter. Acadian Asset Management LLC bought a new position in shares of Capitala Finance Corp. during the first quarter valued at approximately $309,000. Eagle Global Advisors LLC boosted its position in shares of Capitala Finance Corp. by 36.6% in the first quarter. Eagle Global Advisors LLC now owns 26,771 shares of the investment management company’s stock valued at $384,000 after buying an additional 7,168 shares during the last quarter. Finally, Regent Investment Management LLC boosted its position in shares of Capitala Finance Corp. by 8.4% in the second quarter. Regent Investment Management LLC now owns 33,590 shares of the investment management company’s stock valued at $437,000 after buying an additional 2,600 shares during the last quarter. 28.58% of the stock is currently owned by institutional investors and hedge funds.
The company has a 50-day moving average of $13.25 and a 200 day moving average of $13.80.
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About Capitala Finance Corp.
Capitala Finance Corp. is an externally managed non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. Both directly and through its subsidiaries that are licensed by the United States Small Business Administration (SBA), the Company offers financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.
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