Capitala Finance (CPTA) Rating Increased to Hold at Zacks Investment Research

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Zacks Investment Research upgraded shares of Capitala Finance (NASDAQ:CPTA) from a sell rating to a hold rating in a report published on Tuesday.

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. “

Separately, ValuEngine cut shares of Capitala Finance from a hold rating to a sell rating in a report on Friday, December 21st.

CPTA traded up $0.08 during trading on Tuesday, hitting $7.68. The company had a trading volume of 397 shares, compared to its average volume of 78,891. The stock has a market capitalization of $120.22 million, a PE ratio of 7.82 and a beta of 0.96. The company has a debt-to-equity ratio of 1.41, a current ratio of 18.16 and a quick ratio of 18.16. Capitala Finance has a 1-year low of $6.46 and a 1-year high of $9.05.

Capitala Finance (NASDAQ:CPTA) last posted its quarterly earnings results on Monday, November 5th. The investment management company reported $0.25 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.25. The firm had revenue of $11.53 million for the quarter, compared to analysts’ expectations of $11.73 million. Capitala Finance had a negative net margin of 16.14% and a positive return on equity of 7.76%. On average, equities research analysts forecast that Capitala Finance will post 1.02 earnings per share for the current fiscal year.

The firm also recently announced a monthly dividend, which will be paid on Wednesday, February 27th. Shareholders of record on Wednesday, February 20th will be issued a dividend of $0.0833 per share. The ex-dividend date is Tuesday, February 19th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 13.02%. Capitala Finance’s dividend payout ratio (DPR) is 102.04%.

Large investors have recently modified their holdings of the business. Acadian Asset Management LLC raised its holdings in shares of Capitala Finance by 501.2% during the third quarter. Acadian Asset Management LLC now owns 14,201 shares of the investment management company’s stock worth $124,000 after purchasing an additional 11,839 shares during the period. Macquarie Group Ltd. acquired a new stake in shares of Capitala Finance during the second quarter worth $156,000. Finally, Advisors Asset Management Inc. raised its holdings in shares of Capitala Finance by 606.9% during the second quarter. Advisors Asset Management Inc. now owns 2,607,821 shares of the investment management company’s stock worth $2,047,000 after purchasing an additional 2,238,919 shares during the period. 17.71% of the stock is currently owned by institutional investors.

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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