Runway Growth Finance Corp. (NASDAQ:RWAY) Sees Significant Increase in Short Interest

Runway Growth Finance Corp. (NASDAQ:RWAY) was the recipient of a significant increase in short interest in the month of August. As of August 15th, there was short interest totaling 2,240,000 shares, anincreaseof40.0% from the July 31st total of 1,600,000 shares. Currently,6.3% of the company’s shares are sold short. Based on an average daily volume of 294,800 shares, the days-to-cover ratio is presently 7.6 days. Based on an average daily volume of 294,800 shares, the days-to-cover ratio is presently 7.6 days. Currently,6.3% of the company’s shares are sold short.

Analysts Set New Price Targets

A number of analysts have recently weighed in on RWAY shares. B. Riley increased their price objective on Runway Growth Finance from $11.00 to $12.00 and gave the company a “buy” rating in a research note on Monday, August 11th. UBS Group reissued a “buy” rating and set a $12.50 price objective (up previously from $11.50) on shares of Runway Growth Finance in a research note on Wednesday, July 16th. Wells Fargo & Company reissued an “equal weight” rating and set a $9.50 target price (down from $10.00) on shares of Runway Growth Finance in a research note on Wednesday, May 28th. Finally, LADENBURG THALM/SH SH upgraded shares of Runway Growth Finance to a “hold” rating in a report on Monday, August 11th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Runway Growth Finance presently has an average rating of “Moderate Buy” and a consensus target price of $11.00.

Runway Growth Finance Stock Down 1.3%

Runway Growth Finance stock traded down $0.14 during mid-day trading on Monday, reaching $10.56. The stock had a trading volume of 71,146 shares, compared to its average volume of 311,653. The company has a market capitalization of $382.48 million, a price-to-earnings ratio of 5.56 and a beta of 0.70. The company has a 50-day moving average price of $10.86 and a two-hundred day moving average price of $10.32. Runway Growth Finance has a one year low of $8.35 and a one year high of $11.73. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.59 and a quick ratio of 0.59.

Runway Growth Finance (NASDAQ:RWAY) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.38 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). Runway Growth Finance had a return on equity of 11.86% and a net margin of 51.03%.The firm had revenue of $35.15 million during the quarter, compared to analysts’ expectations of $34.27 million. On average, analysts expect that Runway Growth Finance will post 1.67 EPS for the current fiscal year.

Runway Growth Finance Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Monday, August 18th were issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 13.6%. The ex-dividend date was Monday, August 18th. This is an increase from Runway Growth Finance’s previous quarterly dividend of $0.03. Runway Growth Finance’s dividend payout ratio (DPR) is presently 69.47%.

Hedge Funds Weigh In On Runway Growth Finance

A number of hedge funds have recently added to or reduced their stakes in RWAY. HighTower Advisors LLC boosted its holdings in Runway Growth Finance by 2.7% in the first quarter. HighTower Advisors LLC now owns 1,245,645 shares of the company’s stock worth $12,892,000 after purchasing an additional 33,268 shares during the last quarter. North Ground Capital boosted its holdings in Runway Growth Finance by 23.9% in the first quarter. North Ground Capital now owns 1,050,000 shares of the company’s stock worth $10,868,000 after purchasing an additional 202,338 shares during the last quarter. Allium Financial Advisors LLC purchased a new stake in Runway Growth Finance in the first quarter worth approximately $10,568,000. Franklin Resources Inc. boosted its holdings in Runway Growth Finance by 0.4% in the second quarter. Franklin Resources Inc. now owns 461,975 shares of the company’s stock worth $4,957,000 after purchasing an additional 1,973 shares during the last quarter. Finally, Ares Management LLC boosted its holdings in Runway Growth Finance by 4.5% in the first quarter. Ares Management LLC now owns 459,943 shares of the company’s stock worth $4,760,000 after purchasing an additional 20,000 shares during the last quarter. 64.61% of the stock is currently owned by hedge funds and other institutional investors.

About Runway Growth Finance

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors.