Capitala Finance Corp. (CPTA) Hits New 52-Week Low Following Weak Earnings
Capitala Finance Corp. (NASDAQ:CPTA)’s share price reached a new 52-week low during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $11.31 and last traded at $11.17, with a volume of 293,634 shares trading hands. The stock had previously closed at $12.81.
The investment management company reported $0.04 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.37 by $0.33. The business had revenue of $12.36 million during the quarter, compared to the consensus estimate of $15.11 million. Capitala Finance Corp. had a net margin of 27.75% and a return on equity of 11.06%.
The firm also recently announced a monthly dividend, which will be paid on Wednesday, August 30th. Investors of record on Wednesday, August 23rd will be paid a $0.13 dividend. The ex-dividend date is Monday, August 21st. This represents a $1.56 dividend on an annualized basis and a yield of 12.18%. Capitala Finance Corp.’s payout ratio is currently 135.65%.
A number of analysts recently weighed in on CPTA shares. Jefferies Group LLC reissued a “buy” rating and issued a $17.00 target price on shares of Capitala Finance Corp. in a research note on Wednesday, April 19th. Keefe, Bruyette & Woods reissued a “hold” rating and issued a $15.00 target price on shares of Capitala Finance Corp. in a research note on Friday, April 28th. FBR & Co upped their target price on shares of Capitala Finance Corp. from $14.00 to $15.00 and gave the company a “market perform” rating in a research note on Tuesday, May 9th. Zacks Investment Research cut shares of Capitala Finance Corp. from a “hold” rating to a “sell” rating in a research note on Tuesday, May 9th. Finally, Wunderlich raised shares of Capitala Finance Corp. from a “hold” rating to a “buy” rating and upped their target price for the company from $14.50 to $15.50 in a research note on Monday, May 15th. Seven research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Capitala Finance Corp. presently has an average rating of “Hold” and an average price target of $15.44.
A number of institutional investors have recently added to or reduced their stakes in CPTA. Russell Investments Group Ltd. purchased a new position in Capitala Finance Corp. during the second quarter worth approximately $149,000. Nine Chapters Capital Management LLC purchased a new position in Capitala Finance Corp. during the first quarter worth approximately $200,000. Acadian Asset Management LLC purchased a new position in Capitala Finance Corp. during the first quarter worth approximately $309,000. Eagle Global Advisors LLC raised its position in Capitala Finance Corp. by 36.6% in the first quarter. Eagle Global Advisors LLC now owns 26,771 shares of the investment management company’s stock worth $384,000 after buying an additional 7,168 shares during the period. Finally, Regent Investment Management LLC raised its position in Capitala Finance Corp. by 8.4% in the second quarter. Regent Investment Management LLC now owns 33,590 shares of the investment management company’s stock worth $437,000 after buying an additional 2,600 shares during the period. Hedge funds and other institutional investors own 28.58% of the company’s stock.
The company’s 50-day moving average price is $13.25 and its 200-day moving average price is $13.80.
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About Capitala Finance Corp.
Capitala Finance Corp. is an externally managed non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. Both directly and through its subsidiaries that are licensed by the United States Small Business Administration (SBA), the Company offers financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.
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