Zacks Investment Research Lowers Capitala Finance (NASDAQ:CPTA) to Sell

Zacks Investment Research cut shares of Capitala Finance (NASDAQ:CPTA) from a hold rating to a sell rating in a report issued on Tuesday morning, Zacks.com reports.

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. “

A number of other brokerages have also recently commented on CPTA. ValuEngine cut Capitala Finance from a hold rating to a sell rating in a research report on Monday, August 12th. LADENBURG THALM/SH SH cut Capitala Finance from a buy rating to a neutral rating in a research report on Tuesday, August 6th.

Shares of CPTA opened at $7.58 on Tuesday. The company has a quick ratio of 4.42, a current ratio of 4.42 and a debt-to-equity ratio of 1.77. The business has a 50-day simple moving average of $9.13 and a two-hundred day simple moving average of $8.75. The stock has a market cap of $129.37 million, a price-to-earnings ratio of 8.18 and a beta of 1.13. Capitala Finance has a 52 week low of $6.46 and a 52 week high of $9.99.

Capitala Finance (NASDAQ:CPTA) last issued its quarterly earnings results on Monday, August 5th. The investment management company reported $0.25 EPS for the quarter, hitting analysts’ consensus estimates of $0.25. The business had revenue of $11.59 million during the quarter, compared to analysts’ expectations of $12.48 million. Capitala Finance had a positive return on equity of 8.44% and a negative net margin of 107.00%. On average, equities analysts anticipate that Capitala Finance will post 0.99 earnings per share for the current fiscal year.

The firm also recently disclosed a dividend, which will be paid on Thursday, August 29th. Stockholders of record on Thursday, August 22nd will be paid a $0.083 dividend. The ex-dividend date of this dividend is Wednesday, August 21st. Capitala Finance’s dividend payout ratio (DPR) is 100.00%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Punch & Associates Investment Management Inc. boosted its stake in shares of Capitala Finance by 6.4% in the first quarter. Punch & Associates Investment Management Inc. now owns 386,045 shares of the investment management company’s stock worth $3,073,000 after acquiring an additional 23,235 shares during the period. Virtus ETF Advisers LLC bought a new position in shares of Capitala Finance in the second quarter worth about $1,985,000. BB&T Securities LLC boosted its stake in shares of Capitala Finance by 12.2% in the second quarter. BB&T Securities LLC now owns 95,655 shares of the investment management company’s stock worth $903,000 after acquiring an additional 10,381 shares during the period. Regent Investment Management LLC boosted its stake in shares of Capitala Finance by 3.2% in the first quarter. Regent Investment Management LLC now owns 79,816 shares of the investment management company’s stock worth $635,000 after acquiring an additional 2,449 shares during the period. Finally, Oppenheimer & Co. Inc. boosted its stake in shares of Capitala Finance by 97.2% in the first quarter. Oppenheimer & Co. Inc. now owns 46,476 shares of the investment management company’s stock worth $370,000 after acquiring an additional 22,909 shares during the period. 18.22% of the stock is owned by hedge funds and other institutional investors.

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.

Featured Story: What is a Real Estate Investment Trust (REIT)?

Get a free copy of the Zacks research report on Capitala Finance (CPTA)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Capitala Finance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Capitala Finance and related companies with MarketBeat.com's FREE daily email newsletter.