Zacks Investment Research downgraded shares of Capitala Finance (NASDAQ:CPTA) from a hold rating to a sell rating in a research note released on Wednesday, 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. “

CPTA has been the topic of several other research reports. LADENBURG THALM/SH SH lowered shares of Capitala Finance from a buy rating to a neutral rating in a research report on Tuesday, August 6th. ValuEngine upgraded shares of Capitala Finance from a sell rating to a hold rating in a research report on Wednesday, September 4th.

CPTA stock opened at $8.41 on Wednesday. The firm’s fifty day moving average is $8.14 and its 200 day moving average is $8.67. Capitala Finance has a one year low of $6.46 and a one year high of $9.99. The firm has a market cap of $135.34 million, a PE ratio of 8.41 and a beta of 1.19. The company has a debt-to-equity ratio of 1.77, a quick ratio of 4.42 and a current ratio of 4.42.

Capitala Finance (NASDAQ:CPTA) last announced its earnings results on Monday, August 5th. The investment management company reported $0.25 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.25. Capitala Finance had a negative net margin of 107.00% and a positive return on equity of 8.44%. The business had revenue of $11.59 million for the quarter, compared to analyst estimates of $12.48 million. Research analysts predict that Capitala Finance will post 0.99 earnings per share for the current fiscal year.

The business also recently announced a dividend, which will be paid on Friday, September 27th. Stockholders of record on Friday, September 20th will be given a $0.083 dividend. The ex-dividend date is Thursday, September 19th. Capitala Finance’s dividend payout ratio (DPR) is 100.00%.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Ladenburg Thalmann Financial Services Inc. grew its position in shares of Capitala Finance by 572.1% in the second quarter. Ladenburg Thalmann Financial Services Inc. now owns 23,355 shares of the investment management company’s stock valued at $221,000 after purchasing an additional 19,880 shares during the period. BlackRock Inc. acquired a new stake in shares of Capitala Finance in the second quarter valued at about $437,000. Virtus ETF Advisers LLC acquired a new stake in shares of Capitala Finance in the second quarter valued at about $1,985,000. Acadian Asset Management LLC grew its position in shares of Capitala Finance by 119.6% in the second quarter. Acadian Asset Management LLC now owns 32,784 shares of the investment management company’s stock valued at $309,000 after purchasing an additional 17,854 shares during the period. Finally, BB&T Securities LLC grew its position 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 valued at $903,000 after purchasing an additional 10,381 shares during the period. Institutional investors and hedge funds own 18.20% of the company’s stock.

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.

Further Reading: Neutral Rating

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