R. David Spreng, President and CEO of Runway Growth Finance Corp. (NASDAQ: RWAY), has purchased 1,000 shares of the company’s common stock at a price of $10.34 per share, amounting to a total investment of $10,340. This transaction, completed on December 19, 2024, increases his direct ownership to 70,531.84 shares. The move comes as the $382 million market capitalization company trades near its 52-week low of $9.87 per share.
Insider Confidence
Runway Growth Finance, which has a P/E ratio of 10x and a Price-to-Book ratio of 0.75, appears to be experiencing strong insider confidence. The company has been consistently buying back shares, signaling optimism from management. Spreng also holds indirect ownership of 209,510.92 shares through Runway Growth Holdings LLC and an additional 31,686.32 shares via a 401(k) plan. Notably, the stock count also includes shares acquired through the company’s automatic dividend reinvestment plan, a key feature for investors given the company’s 29.17% dividend yield.
Financial Metrics and Developments
Runway Growth Finance’s third-quarter performance highlighted its solid financial standing, reporting total investment income of $36.7 million and net investment income of $15.9 million, which comfortably covered its quarterly dividend. The fair value of its investment portfolio stood at $1.07 billion, and net assets rose to $507.4 million, with net asset value per share increasing to $13.39.
Additionally, the company has made strides in its strategic positioning, entering an agreement to be acquired by BC Partners Credit. The acquisition is aimed at enhancing the company’s capabilities while maintaining its independence. On the leadership front, Runway Growth Finance also saw the resignation of director Gregory M. Share, with a nominee from OCM Growth Holdings, LLC set to fill the vacancy.
Analyst Reactions
In recent news, Wells Fargo upgraded Runway Growth Finance from Equal Weight to Overweight, raising the price target to $11.00. Both Wells Fargo and Lucid Capital Markets analysts have projected a potential re-rating of the stock, citing a period of peak pessimism and uncertainty, and emphasizing more accurate consensus estimates for net operating income.
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