Oppenheimer analyst Chris Kotowski maintained a Hold rating on Capitala Finance (NASDAQ: CPTA) today. The company’s shares opened today at $8.70.
Kotowski wrote:
“We have been looking for CPTA to demonstrate four key developments: 1) monetization of equity positions, 2) clean coverage of dividend out of net investment income (NII), 3) NAV stability, and 4) no new non-accrual. In the 2Q earnings report CPTA checked two out of the four boxes. While CPTA had one new non-accrual and covered its dividend without paying incentive fee, the company monetized two equity positions and its NAV went up from $13.66 in 1Q18 to $13.71 in 2Q18 after 5 consecutive quarters of decline. Although CPTA has more work to do to underwrite less risky loans, on balance the company shows additional signs of achieving longer- term stability.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 11.6% and a 69.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Fidus Investment Corporation.
The word on The Street in general, suggests a Hold analyst consensus rating for Capitala Finance.
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The company has a one-year high of $12 and a one-year low of $6.88. Currently, Capitala Finance has an average volume of 65.08K.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CPTA in relation to earlier this year.
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Capitala Finance Corp. is a non-diversified closed-end management investment company, which focuses in making debt and selective equity investments in sponsored and non-sponsored lower and traditional middle market companies, primarily in the United States. The company was founded on May 24, 2013 and is headquaretered in Charlotte, NC.
