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

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 equities research analysts have also recently commented on the company. ValuEngine raised Capitala Finance from a “strong sell” rating to a “sell” rating in a report on Wednesday, August 8th. Keefe, Bruyette & Woods reissued a “hold” rating and set a $9.00 price target on shares of Capitala Finance in a report on Wednesday, August 8th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the stock. Capitala Finance presently has an average rating of “Hold” and a consensus target price of $9.13.

NASDAQ:CPTA opened at $8.15 on Thursday. The company has a current ratio of 18.16, a quick ratio of 4.64 and a debt-to-equity ratio of 1.41. The stock has a market cap of $130.96 million, a price-to-earnings ratio of 8.09 and a beta of 0.97. Capitala Finance has a 52 week low of $6.88 and a 52 week high of $9.05.

Several hedge funds have recently modified their holdings of the company. Advisors Asset Management Inc. increased its holdings in shares of Capitala Finance by 606.9% in the second quarter. Advisors Asset Management Inc. now owns 2,607,821 shares of the investment management company’s stock worth $2,047,000 after purchasing an additional 2,238,919 shares during the last quarter. Stephens Inc. AR bought a new stake in shares of Capitala Finance in the second quarter worth about $597,000. Eqis Capital Management Inc. bought a new stake in shares of Capitala Finance in the second quarter worth about $182,000. Macquarie Group Ltd. bought a new stake in shares of Capitala Finance in the second quarter worth about $156,000. Finally, Acadian Asset Management LLC increased its holdings in shares of Capitala Finance by 501.2% in the third quarter. Acadian Asset Management LLC now owns 14,201 shares of the investment management company’s stock worth $124,000 after purchasing an additional 11,839 shares during the last quarter. 16.01% of the stock is currently owned by hedge funds and other institutional investors.

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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