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, a 1.26% downside from the current price.
Key Points
- On June 15, 2026, B of A Securities downgraded Runway Growth Finance to 'sell' with a $5.5 target price.
- B of A Securities's $5.50 price target implies 1.26% downside from Runway Growth Finance Corp.'s ($RWAY) current $5.57 share 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.
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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 Corp. Stock Down 15.5%
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.
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