R. David Spreng, President and CEO of Runway Growth Finance Corp. (NASDAQ:), has recently acquired 1,000 shares of the company’s common stock at a price of $10.34 per share, totaling $10,340. This transaction, dated December 19, 2024, increases his direct ownership to 70,531.84 shares. The purchase comes as the $382 million market cap company trades near its 52-week low of $9.87, with a P/E ratio of 10x and an attractive Price-to-Book ratio of 0.75. According to InvestingPro analysis, management has been consistently buying back shares, showing strong insider confidence.
Additionally, Spreng holds indirect ownership of 209,510.92 shares through Runway Growth Holdings LLC and 31,686.32 shares via a 401(k) plan. The indirect holdings by Runway Growth Holdings LLC are potentially attributable to Spreng due to his role as CEO of Runway Growth Capital LLC, although he disclaims beneficial ownership of these securities. The stock count includes shares acquired through the company’s automatic dividend reinvestment plan, which is particularly notable given the company’s significant 29.17% dividend yield. Want deeper insights? InvestingPro subscribers have access to extensive financial metrics and 8 additional ProTips about RWAY’s performance and outlook.
In other recent news, Runway Growth Finance has seen a flurry of developments. Wells Fargo (NYSE:) upgraded the company’s stock from Equal Weight to Overweight, raising the price target to $11.00. Analysts from Wells Fargo and Lucid (NASDAQ:) Capital Markets project a potential re-rating of the stock, citing a period of peak pessimism and uncertainty as well as more accurate consensus net operating income estimates.
The company reported a solid third quarter, with total investment income of $36.7 million and net investment income of $15.9 million, comfortably covering its quarterly dividend. Its fair value investment portfolio was valued at approximately $1.07 billion, with net assets increasing to $507.4 million, and net asset value per share rising to $13.39.
Runway Growth Finance has also entered an agreement to be acquired by BC Partners Credit, aiming to enhance capabilities while maintaining independence. The company announced the resignation of director Gregory M. Share, with a nominee from OCM Growth Holdings, LLC expected to fill the vacancy.
These recent developments reflect the company’s focus on a disciplined investment approach and a strategic vision for future growth.
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