Capitala Finance Corp (NASDAQ:CPTA) Sees Large Decline in Short Interest

Capitala Finance Corp (NASDAQ:CPTA) was the target of a large decrease in short interest in December. As of December 31st, there was short interest totalling 161,800 shares, a decrease of 16.3% from the December 15th total of 193,300 shares. Approximately 1.1% of the shares of the company are short sold. Based on an average trading volume of 120,700 shares, the short-interest ratio is presently 1.3 days.

Institutional investors and hedge funds have recently modified their holdings of the stock. JPMorgan Chase & Co. bought a new position in Capitala Finance during the 2nd quarter worth $27,000. Biltmore Capital Advisors LLC grew its stake in Capitala Finance by 33.3% during the 3rd quarter. Biltmore Capital Advisors LLC now owns 16,000 shares of the investment management company’s stock worth $133,000 after buying an additional 4,000 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. grew its stake in Capitala Finance by 572.1% during the 2nd quarter. Ladenburg Thalmann Financial Services Inc. now owns 23,355 shares of the investment management company’s stock worth $221,000 after buying an additional 19,880 shares during the last quarter. Finally, BlackRock Inc. bought a new position in Capitala Finance during the 2nd quarter worth $437,000. Hedge funds and other institutional investors own 15.53% of the company’s stock.

CPTA traded up $0.09 during trading on Wednesday, reaching $8.92. 113,490 shares of the company were exchanged, compared to its average volume of 147,309. The stock has a market cap of $143.77 million, a P/E ratio of 8.92 and a beta of 1.18. The firm has a 50 day moving average of $8.65 and a 200 day moving average of $8.63. The company has a current ratio of 15.22, a quick ratio of 15.22 and a debt-to-equity ratio of 1.80. Capitala Finance has a 52 week low of $7.34 and a 52 week high of $9.99.

Capitala Finance (NASDAQ:CPTA) last issued its quarterly earnings data on Monday, November 4th. The investment management company reported $0.18 EPS for the quarter, missing the Zacks’ consensus estimate of $0.24 by ($0.06). The company had revenue of $10.13 million for the quarter, compared to the consensus estimate of $11.59 million. Capitala Finance had a positive return on equity of 8.57% and a negative net margin of 80.46%. As a group, analysts forecast that Capitala Finance will post 0.9 earnings per share for the current fiscal year.

The business also recently disclosed a monthly dividend, which will be paid on Monday, March 30th. Investors of record on Monday, March 23rd will be paid a dividend of $0.0833 per share. The ex-dividend date is Friday, March 20th. This represents a $1.00 dividend on an annualized basis and a yield of 11.21%. Capitala Finance’s payout ratio is currently 100.00%.

CPTA has been the topic of several research reports. Keefe, Bruyette & Woods lowered Capitala Finance from a “market perform” rating to an “underperform” rating and set a $7.50 price target on the stock. in a research report on Sunday, October 20th. ValuEngine raised Capitala Finance from a “sell” rating to a “hold” rating in a research report on Friday, January 3rd. Finally, Zacks Investment Research raised Capitala Finance from a “sell” rating to a “hold” rating in a research report on Tuesday, January 7th.

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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