Zacks Investment Research upgraded shares of Capitala Finance (NASDAQ:CPTA) from a sell rating to a hold rating in a research report sent to investors 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 upgraded shares of Capitala Finance from a sell rating to a hold rating in a report on Friday, December 28th.

Capitala Finance stock traded up $0.08 during trading on Tuesday, reaching $7.68. The company had a trading volume of 397 shares, compared to its average volume of 78,891. Capitala Finance has a 12-month low of $6.46 and a 12-month high of $9.05. The company has a market cap of $120.22 million, a price-to-earnings ratio of 7.82 and a beta of 0.96. The company has a debt-to-equity ratio of 1.41, a quick ratio of 18.16 and a current ratio of 18.16.

Capitala Finance (NASDAQ:CPTA) last released its earnings results on Monday, November 5th. The investment management company reported $0.25 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.25. Capitala Finance had a negative net margin of 16.14% and a positive return on equity of 7.76%. The firm had revenue of $11.53 million during the quarter, compared to the consensus estimate of $11.73 million. Sell-side analysts predict that Capitala Finance will post 1.02 EPS for the current year.

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

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Acadian Asset Management LLC grew its stake in 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 buying an additional 11,839 shares during the period. Macquarie Group Ltd. purchased a new stake in Capitala Finance during the second quarter worth approximately $156,000. Finally, Advisors Asset Management Inc. grew its stake in 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 buying an additional 2,238,919 shares during the period. Institutional investors own 17.71% of the company’s stock.

Capitala Finance Company Profile

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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