Thomas B. Raterman, the Chief Financial Officer of Runway Growth Finance Corp. (NASDAQ:RWAY), recently acquired 8,803 shares of common stock at a price of $10.18 per share, amounting to a total transaction value of $89,614. Following this acquisition, Raterman holds a total of 209,510.92 shares indirectly through Runway Growth Holdings LLC. Additionally, he directly owns 27,441 shares, which includes shares acquired through the company's automatic dividend reinvestment plan.
In other recent news, Runway Growth Finance Corp. announced robust third-quarter financial results and the resignation of director Gregory M. Share. The company reported a total investment income of $36.7 million and a net investment income of $15.9 million, covering its quarterly dividend comfortably. Runway's fair value investment portfolio was valued at approximately $1.07 billion, with net assets increasing to $507.4 million and net asset value (NAV) per share rising to $13.39.
Additionally, Runway Growth Finance Corp. disclosed an agreement to be acquired by BC Partners Credit, aiming to enhance capabilities while maintaining independence. The company's operating expenses did increase by 6% from the previous quarter to $20.8 million, but Runway recorded a net unrealized gain of $9.2 million.
In terms of board changes, Mr. Share's departure will be filled by a nominee from OCM Growth Holdings, LLC, according to a recent SEC filing. These are some of the recent developments for Runway Growth Finance Corp.
InvestingPro Insights
The recent insider buying by Runway Growth Finance Corp.'s CFO aligns with several positive indicators highlighted by InvestingPro. According to InvestingPro Tips, management has been aggressively buying back shares, which, coupled with Raterman's purchase, suggests confidence in the company's future prospects. Additionally, Runway Growth Finance has raised its dividend for three consecutive years and pays a significant dividend to shareholders, with a current dividend yield of 29.0%.
The company's financial health appears robust, with InvestingPro data showing a P/E ratio of 9.99, significantly lower than many in the financial sector. This could indicate that the stock is undervalued, especially considering the company's profitability over the last twelve months. The price-to-book ratio of 0.77 further supports the notion that the stock may be trading below its intrinsic value.
However, investors should note that 8 analysts have revised their earnings downwards for the upcoming period, which may signal some near-term challenges. Despite this, the company's strong dividend policy and management's confidence, as evidenced by share buybacks and insider purchases, present a compelling case for long-term investors.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Runway Growth Finance Corp., providing a more comprehensive view of the company's financial position and future outlook.
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