Sound Income Strategies LLC Raises Stock Position in Runway Growth Finance Corp. $RWAY

Sound Income Strategies LLC boosted its holdings in shares of Runway Growth Finance Corp. (NASDAQ:RWAY) by 10.3% in the first quarter, HoldingsChannel reports. The firm owned 1,843,232 shares of the company’s stock after buying an additional 171,872 shares during the period. Sound Income Strategies LLC owned 0.05% of Runway Growth Finance worth $12,534,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently added to or reduced their stakes in the company. North Ground Capital boosted its holdings in Runway Growth Finance by 102.5% in the fourth quarter. North Ground Capital now owns 1,569,050 shares of the company’s stock valued at $14,012,000 after purchasing an additional 794,050 shares during the last quarter. Bulldog Investors LLP raised its stake in shares of Runway Growth Finance by 15.3% during the 4th quarter. Bulldog Investors LLP now owns 1,200,872 shares of the company’s stock valued at $10,724,000 after buying an additional 159,588 shares during the last quarter. UBS Group AG lifted its holdings in shares of Runway Growth Finance by 57.0% in the 4th quarter. UBS Group AG now owns 638,503 shares of the company’s stock valued at $5,702,000 after buying an additional 231,744 shares during the period. Two Sigma Investments LP lifted its holdings in shares of Runway Growth Finance by 7.2% in the 3rd quarter. Two Sigma Investments LP now owns 602,410 shares of the company’s stock valued at $6,120,000 after buying an additional 40,354 shares during the period. Finally, Ares Management LLC boosted its stake in shares of Runway Growth Finance by 26.9% in the fourth quarter. Ares Management LLC now owns 553,123 shares of the company’s stock worth $4,939,000 after buying an additional 117,238 shares during the last quarter. 64.61% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms recently commented on RWAY. Wells Fargo & Company dropped their target price on Runway Growth Finance to $6.50 and set an “equal weight” rating on the stock in a report on Thursday, May 14th. B. Riley Financial decreased their price target on Runway Growth Finance from $12.00 to $10.00 and set a “buy” rating for the company in a report on Tuesday, March 17th. Wall Street Zen lowered Runway Growth Finance from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. Bank of America cut shares of Runway Growth Finance from a “neutral” rating to an “underperform” rating and dropped their price objective for the stock from $9.00 to $5.50 in a research note on Monday, June 15th. Finally, JPMorgan Chase & Co. cut their target price 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. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Runway Growth Finance has a consensus rating of “Hold” and an average target price of $8.20.

Runway Growth Finance Price Performance

NASDAQ:RWAY opened at $5.49 on Friday. Runway Growth Finance Corp. has a 52 week low of $5.21 and a 52 week high of $11.40. The company has a quick ratio of 0.44, a current ratio of 0.44 and a debt-to-equity ratio of 1.01. The stock has a market capitalization of $233.16 million, a PE ratio of -61.00 and a beta of 0.66. The stock’s 50-day moving average price is $6.16 and its 200-day moving average price is $7.46.

Runway Growth Finance (NASDAQ:RWAY) last released its quarterly earnings results 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 business had revenue of $29.45 million during the quarter, compared to analyst estimates of $29.46 million. Runway Growth Finance had a positive return on equity of 10.87% and a negative net margin of 2.00%. As a group, equities analysts expect that Runway Growth Finance Corp. will post 1.23 EPS for the current fiscal year.

Runway Growth Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders 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 dividend yield of 24.0%. Runway Growth Finance’s dividend payout ratio (DPR) is -1,466.67%.

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.