Capitala Finance (NASDAQ:CPTA) Downgraded to Sell at Zacks Investment Research

Capitala Finance (NASDAQ:CPTA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday, 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. “

A number of other research analysts have also recently issued reports on the company. ValuEngine cut Capitala Finance from a “buy” rating to a “hold” rating in a report on Thursday, August 1st. LADENBURG THALM/SH SH lowered Capitala Finance from a “buy” rating to a “neutral” rating in a research report on Tuesday, August 6th.

Shares of Capitala Finance stock traded down $0.13 during trading on Monday, hitting $8.01. 189,884 shares of the stock were exchanged, compared to its average volume of 99,255. The company has a fifty day moving average of $9.42. The stock has a market cap of $129.20 million, a PE ratio of 8.01 and a beta of 1.13. The company has a current ratio of 4.42, a quick ratio of 1.13 and a debt-to-equity ratio of 1.77. Capitala Finance has a 12 month low of $6.46 and a 12 month high of $9.99.

Capitala Finance (NASDAQ:CPTA) last announced its earnings results on Monday, August 5th. The investment management company reported $0.25 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.25. The firm had revenue of $11.59 million during the quarter, compared to analyst estimates of $12.48 million. Capitala Finance had a negative net margin of 107.00% and a positive return on equity of 8.44%. Sell-side analysts expect that Capitala Finance will post 0.99 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently modified their holdings of the stock. JPMorgan Chase & Co. purchased a new position in shares of Capitala Finance in the 2nd quarter worth about $27,000. Eidelman Virant Capital purchased a new stake in Capitala Finance during the 2nd quarter valued at $94,000. Franklin Street Advisors Inc. NC purchased a new stake in Capitala Finance during the 1st quarter valued at $108,000. Virtu Financial LLC purchased a new stake in Capitala Finance during the 1st quarter valued at $179,000. Finally, AJO LP purchased a new stake in Capitala Finance during the 1st quarter valued at $234,000. Institutional investors and hedge funds own 16.42% of the company’s stock.

About Capitala Finance

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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