Thomas B. Raterman, the Chief Financial Officer of Runway Growth Finance Corp. (NASDAQ:RWAY), recently acquired a significant amount of the company's common stock. According to a recent SEC filing, Raterman purchased a total of 20,743 shares over the course of two days, with an investment totaling approximately $209,655. The shares were acquired at prices ranging from $10.10 to $10.12 per share.
The transactions, dated November 18 and 19, were indirectly owned through Runway Growth Holdings LLC, a company associated with Raterman. Following these acquisitions, Raterman's indirect ownership now stands at 200,707.92 shares. Additionally, he holds 27,441 shares directly.
These purchases highlight Raterman's continued investment in Runway Growth Finance, where he also serves as Chief Operating Officer, Treasurer, and Secretary.
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, comfortably covering its quarterly dividend. The company also unveiled a definitive agreement to be acquired by BC Partners Credit, a development aimed at enhancing capabilities while preserving independence. 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.
In addition to these financial highlights, Runway Growth Finance Corp. announced the resignation of director Gregory M. Share. The vacancy left by Mr. Share's departure will be filled by a nominee from OCM Growth Holdings, LLC, as per the Stockholder Agreement dated December 15, 2016. The nominee is expected to be an individual without a conflicting interest in the company, its investment adviser, or OCM itself.
These developments are part of the company's ongoing efforts to navigate changing market conditions, including recent Federal Reserve rate cuts, while maintaining a disciplined investment approach. While operating expenses did increase by 6% from the previous quarter to $20.8 million, Runway recorded a net unrealized gain of $9.2 million, contrasting with a net unrealized loss in the prior quarter. These are some of the key recent developments for Runway Growth Finance Corp.
InvestingPro Insights
Thomas B. Raterman's recent stock acquisition aligns with several key insights from InvestingPro. According to InvestingPro Tips, management at Runway Growth Finance Corp. (NASDAQ:RWAY) has been aggressively buying back shares, which complements Raterman's personal investment strategy. This insider buying activity could be seen as a vote of confidence in the company's future prospects.
Additionally, RWAY has raised its dividend for 3 consecutive years and pays a significant dividend to shareholders. As of the most recent data, the company boasts an impressive dividend yield of 29.2%, which may be particularly attractive to income-focused investors.
From a valuation perspective, RWAY's P/E ratio stands at 9.86, with an adjusted P/E ratio of 5.98 for the last twelve months as of Q3 2024. The company's price-to-book ratio is 0.75, suggesting the stock may be undervalued relative to its book value. These metrics, combined with the fact that the stock is trading near its 52-week low, could indicate a potential buying opportunity for value investors.
It's worth noting that while RWAY has been profitable over the last twelve months, with analysts predicting continued profitability this year, there are some cautionary signals. Seven analysts have revised their earnings downwards for the upcoming period, and the company's short-term obligations exceed its liquid assets.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for RWAY, providing a deeper understanding of the company's financial health and market position.
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