B of A Securities Downgrades Runway Growth Finance to 'Sell'
B of A Securities lowered Runway Growth Finance's rating to 'sell' with a target of $5.5.
Key Points
- On June 15, 2026, B of A Securities downgraded Runway Growth Finance to 'sell' with a $5.5 target price.
- Runway Growth Finance shares are trading near $5.78, with a market cap of about $237.8 million and a forward P/E of 4.375.
- Insider purchases included CFO Thomas Raterman and CEO David Spreng buying shares in May 2026.
On June 15, 2026, B of A Securities downgraded Runway Growth Finance Corp. (NasdaqGS: RWAY) to a 'sell' rating. Analyst Derek Hewett set a price target of $5.5. The stock was trading around $5.78 at the time of the announcement.
Other Institutional Activity in Runway Growth Finance
Oaktree Capital Management LP maintained its position with 7,029,667 shares valued at about $48.3 million. Sound Income Strategies, LLC increased its holdings by 171,872 shares, reaching a total of 1,843,232 shares worth approximately $12.5 million. HighTower Advisors, LLC added 88,295 shares, bringing its total to 1,394,580 shares valued at around $9.6 million. Bulldog Investors, LLP slightly reduced its position by 743 shares to 1,200,129 shares valued at about $8.2 million. Ares Management LLC significantly boosted its stake by 624,700 shares, ending with 1,177,823 shares worth approximately $8.1 million.
Runway Growth Finance Stock Snapshot
Shares of NasdaqGS:RWAY were trading near $5.78. Runway Growth Finance has a market cap of about $237.8 million and a forward P/E of 4.375. The stock's 52-week range is $5.60 to $11.41, with a 50-day moving average of $6.49 and a 200-day moving average of $8.46. The company's debt-to-equity ratio stands at 100.79.
Recent Earnings
Runway Growth Finance reported revenue of $131.4 million, though it experienced a revenue decline of 16.8%. The company posted a net margin of -2.01% and a return on equity of -0.56%. The next earnings report is expected on August 6, 2026.
Dividend
The company offers an annual dividend rate of $1.35, yielding about 24.11%. The dividend payout ratio is 150.54%.
Insider Buying and Selling at Runway Growth Finance Corp.
On May 20, 2026, CFO and COO Thomas Raterman purchased 7,000 shares at $6.34 each under a planned transaction. President and CEO David Spreng acquired 3,000 shares at $6.37 on the same day, not under a planned purchase. Earlier, on May 14, 2026, Raterman also bought 3,000 shares at $6.67.
Analysts Set New Price Targets
On June 15, 2026, B of A Securities downgraded the stock to 'sell' with a $5.5 target. Previously, Wells Fargo maintained a 'hold' rating with a $6.5 target on May 14, 2026. B. Riley Securities held a 'buy' rating with a $10 target on March 17, 2026. The consensus target price is $8.54, based on six analyst opinions.
About Runway Growth Finance Corp.
Runway Growth Finance Corp. is a business development company based in Menlo Park, California. Led by CEO David R. Spreng, it specializes in senior-secured loans to late-stage and growth companies across various sectors, including technology, life sciences, and healthcare. The company focuses on investments in senior secured loans ranging from $10 million to $75 million.
Bottom Line
B of A Securities' downgrade reflects a cautious view of Runway Growth Finance's near-term prospects, with a lowered price target of $5.5. Investors keep an eye on such ratings for insights, though 13F filings and analyst opinions are backward-looking and may not indicate current positions or future performance.
See Also
This instant news alert was generated by automated narrative technology and financial data from EarningsIQ and public regulatory filings. It is for informational purposes only and is not financial advice.