Capitala Finance (NASDAQ:CPTA) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Capitala Finance (NASDAQ:CPTA) from a hold rating to a sell rating in a research report sent to investors on Tuesday, Zacks.com reports.

According to Zacks, “Capitala Finance Corp. is a business development company. The company invests primarily in traditional mezzanine, senior subordinated and unitranche debt, senior and second-lien loans and equity securities. Capitala Finance Corp. is headquartered in Charlotte, United States. “

Several other analysts also recently issued reports on CPTA. LADENBURG THALM/SH SH downgraded Capitala Finance from a buy rating to a neutral rating in a research note on Tuesday, August 6th. ValuEngine downgraded Capitala Finance from a hold rating to a sell rating in a research note on Monday, August 12th.

CPTA opened at $7.56 on Tuesday. The business has a fifty day simple moving average of $9.17 and a 200 day simple moving average of $8.76. The company has a market capitalization of $133.88 million, a PE ratio of 7.56 and a beta of 1.13. Capitala Finance has a 1 year low of $6.46 and a 1 year high of $9.99. The company has a debt-to-equity ratio of 1.77, a current ratio of 4.42 and a quick ratio of 4.42.

Capitala Finance (NASDAQ:CPTA) last released its quarterly earnings results on Monday, August 5th. The investment management company reported $0.25 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.25. The business had revenue of $11.59 million during the quarter, compared to the consensus estimate of $12.48 million. Capitala Finance had a positive return on equity of 8.44% and a negative net margin of 107.00%. Equities analysts anticipate that Capitala Finance will post 0.99 earnings per share for the current fiscal year.

The company also recently declared a dividend, which will be paid on Thursday, August 29th. Investors of record on Thursday, August 22nd will be paid a $0.083 dividend. The ex-dividend date of this dividend is Wednesday, August 21st. Capitala Finance’s dividend payout ratio (DPR) is presently 100.00%.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Regent Investment Management LLC boosted its stake in Capitala Finance by 3.2% in the 1st quarter. Regent Investment Management LLC now owns 79,816 shares of the investment management company’s stock valued at $635,000 after purchasing an additional 2,449 shares during the period. JPMorgan Chase & Co. acquired a new position in Capitala Finance in the 2nd quarter valued at $27,000. Eidelman Virant Capital acquired a new position in Capitala Finance in the 2nd quarter valued at $94,000. BB&T Securities LLC raised its holdings in Capitala Finance by 12.2% in the 2nd quarter. BB&T Securities LLC now owns 95,655 shares of the investment management company’s stock valued at $903,000 after acquiring an additional 10,381 shares in the last quarter. Finally, Franklin Street Advisors Inc. NC acquired a new position in Capitala Finance in the 1st quarter valued at $108,000. Institutional investors and hedge funds own 18.22% of the company’s stock.

Capitala Finance Company Profile

Capitala Finance Corp. is a Business Development Company specializing in traditional mezzanine, senior subordinated and unitranche debt, first-lien and second-lien loans, equity investments in sponsored and non-sponsored lower and traditional middle market companies. The fund targets companies in the business services, commercial and professional services, manufacturing, consumer and retail, energy, and health-care industries.

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