Capitala Finance (CPTA) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research lowered shares of Capitala Finance (NASDAQ:CPTA) from a hold rating to a sell rating in a research note published 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. “

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

CPTA stock traded up $0.03 during trading on Thursday, hitting $8.15. 69,207 shares of the stock traded hands, compared to its average volume of 76,730. Capitala Finance has a 1 year low of $6.88 and a 1 year high of $9.05. The company has a market capitalization of $129.35 million, a price-to-earnings ratio of 8.30 and a beta of 0.97. The company has a debt-to-equity ratio of 1.41, a quick ratio of 4.64 and a current ratio of 18.16.

Capitala Finance (NASDAQ:CPTA) last announced its quarterly earnings data on Monday, August 6th. The investment management company reported $0.22 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.27 by ($0.05). Capitala Finance had a negative net margin of 16.14% and a positive return on equity of 7.76%. The firm had revenue of $11.88 million for the quarter, compared to analysts’ expectations of $12.41 million. As a group, research analysts predict that Capitala Finance will post 1.04 earnings per share for the current fiscal year.

The business also recently announced a dividend, which will be paid on Thursday, November 29th. Shareholders of record on Wednesday, November 21st will be paid a dividend of $0.083 per share. The ex-dividend date is Tuesday, November 20th. Capitala Finance’s dividend payout ratio is currently 102.04%.

Institutional investors and hedge funds have recently bought and sold shares of the business. Acadian Asset Management LLC lifted its stake in Capitala Finance by 501.2% during the 3rd quarter. Acadian Asset Management LLC now owns 14,201 shares of the investment management company’s stock valued at $124,000 after acquiring an additional 11,839 shares during the period. Macquarie Group Ltd. bought a new position in Capitala Finance during the 2nd quarter valued at about $156,000. Eqis Capital Management Inc. bought a new position in Capitala Finance during the 2nd quarter valued at about $182,000. Stephens Inc. AR bought a new position in Capitala Finance during the 2nd quarter valued at about $597,000. Finally, Advisors Asset Management Inc. lifted its stake in Capitala Finance by 606.9% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,607,821 shares of the investment management company’s stock valued at $2,047,000 after acquiring an additional 2,238,919 shares during the period. Institutional investors and hedge funds own 16.01% of the company’s stock.

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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