R. David Spreng, President and CEO of Runway Growth Finance Corp. (NASDAQ:RWAY), has made significant acquisitions of the company's common stock, according to a recent SEC filing. On November 18 and 19, Spreng purchased a total of 20,743 shares, with the transaction prices ranging from $10.10 to $10.12 per share. This amounts to an investment of approximately $209,655.
The shares were acquired indirectly through Runway Growth Holdings LLC, a company associated with Spreng. Following these transactions, Spreng holds a substantial number of shares both directly and indirectly, reflecting his continued confidence in Runway Growth Finance's prospects.
In other recent news, Runway Growth Finance Corp. reported strong third-quarter financial results, including a total investment income of $36.7 million and a net investment income of $15.9 million. The company also announced an agreement to be acquired by BC Partners Credit, a move aimed at enhancing capabilities while preserving independence. The company's fair value investment portfolio was valued at approximately $1.07 billion, with net assets increasing to $507.4 million. Despite a 6% increase in operating expenses to $20.8 million, Runway recorded a net unrealized gain of $9.2 million.
In addition, the company announced the resignation of director Gregory M. Share. According to a recent SEC Form 8-K filing, the vacancy left by Mr. Share's departure will be filled by a nominee from OCM Growth Holdings, LLC. This candidate is expected to be an "uninterested person" as defined by the Investment Company Act of 1940, indicating an individual without a conflicting interest in the company, its investment adviser, or OCM itself.
These are recent developments for Runway Growth Finance Corp., which has maintained a disciplined investment approach despite market changes. Further updates on the company's fourth quarter and full year 2024 results are anticipated in March.
InvestingPro Insights
R. David Spreng's recent acquisition of Runway Growth Finance Corp. (NASDAQ:RWAY) shares aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week low, which may have presented an attractive entry point for the CEO. This purchase decision could be influenced by the company's strong dividend profile, as highlighted by InvestingPro Tips.
RWAY has raised its dividend for 3 consecutive years and pays a significant dividend to shareholders. In fact, the current dividend yield stands at an impressive 29.2%, which could be a major draw for income-focused investors. The company's commitment to shareholder returns is further underscored by management's aggressive share buyback program, another InvestingPro Tip.
Despite recent revenue challenges, with a 7.04% decline in the last twelve months, RWAY maintains a solid profitability outlook. The company boasts a 100% gross profit margin and a robust operating income margin of 73.91%. These figures suggest efficient operations and strong pricing power, which could support future dividend sustainability.
The stock's valuation metrics also paint an interesting picture. With a P/E ratio of 9.86 and a price-to-book ratio of 0.75, RWAY appears to be trading at a discount relative to its book value and earnings. This valuation, combined with the company's profitability and dividend history, may have factored into Spreng's decision to increase his stake.
It's worth noting that InvestingPro lists 8 additional tips for RWAY, offering subscribers a more comprehensive analysis of the company's financial health and market position. Investors seeking deeper insights into Runway Growth Finance Corp. may find value in exploring these additional tips on the InvestingPro platform.
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