Runway Growth Finance (NASDAQ:RWAY) Downgraded to “Underperform” Rating by Bank of America

Runway Growth Finance (NASDAQ:RWAY) was downgraded by equities research analysts at Bank of America from a “neutral” rating to an “underperform” rating in a research report issued on Monday, MarketBeat Ratings reports. They presently have a $5.50 target price on the stock. Bank of America‘s price objective would suggest a potential downside of 8.79% from the stock’s previous close.

Other equities research analysts also recently issued reports about the stock. JPMorgan Chase & Co. cut their target price on shares of Runway Growth Finance from $9.50 to $7.00 and set a “neutral” rating on the stock in a research report on Friday, March 13th. Zacks Research upgraded shares of Runway Growth Finance from a “strong sell” rating to a “hold” rating in a research report on Friday, May 15th. B. Riley Financial dropped their price target on shares of Runway Growth Finance from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Tuesday, March 17th. Wall Street Zen downgraded shares of Runway Growth Finance from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. Finally, Wells Fargo & Company dropped their price target on shares of Runway Growth Finance to $6.50 and set an “equal weight” rating on the stock in a research report on Thursday, May 14th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $8.20.

Runway Growth Finance Price Performance

NASDAQ:RWAY opened at $6.03 on Monday. The firm’s 50 day simple moving average is $6.51 and its 200 day simple moving average is $7.82. The company has a debt-to-equity ratio of 1.01, a current ratio of 0.44 and a quick ratio of 0.44. Runway Growth Finance has a one year low of $5.89 and a one year high of $11.40. The company has a market cap of $256.06 million, a PE ratio of -67.00 and a beta of 0.64.

Runway Growth Finance (NASDAQ:RWAY) last posted its earnings results on Thursday, May 7th. The company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.02). Runway Growth Finance had a positive return on equity of 10.87% and a negative net margin of 2.00%.The business had revenue of $29.45 million for the quarter, compared to analyst estimates of $29.47 million. On average, research analysts anticipate that Runway Growth Finance will post 1.23 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of RWAY. Royal Bank of Canada lifted its position in shares of Runway Growth Finance by 52.3% during the 1st quarter. Royal Bank of Canada now owns 21,252 shares of the company’s stock valued at $220,000 after acquiring an additional 7,299 shares during the period. Invesco Ltd. lifted its position in shares of Runway Growth Finance by 4.6% during the 2nd quarter. Invesco Ltd. now owns 22,034 shares of the company’s stock valued at $236,000 after acquiring an additional 969 shares during the period. Jump Financial LLC lifted its position in shares of Runway Growth Finance by 704.0% during the 2nd quarter. Jump Financial LLC now owns 102,912 shares of the company’s stock valued at $1,104,000 after acquiring an additional 90,112 shares during the period. Raymond James Financial Inc. acquired a new position in shares of Runway Growth Finance during the 2nd quarter valued at $51,000. Finally, Bank of America Corp DE lifted its position in shares of Runway Growth Finance by 32.9% during the 2nd quarter. Bank of America Corp DE now owns 379,143 shares of the company’s stock valued at $4,068,000 after acquiring an additional 93,755 shares during the period. Institutional investors and hedge funds own 64.61% of the company’s stock.

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.