Could Capitala Finance Corp. (CPTA) Recover After Forming a Wedge Up Chart Pattern?

July 16, 2018 - By Catherine Diaz

Capitala Finance Corp. (NASDAQ:CPTA) Logo

Investors sentiment decreased to 0.93 in Q1 2018. Its down 0.50, from 1.43 in 2017Q4. It fall, as 11 investors sold Capitala Finance Corp. shares while 4 reduced holdings. 7 funds opened positions while 7 raised stakes. 2.16 million shares or 2.70% less from 2.22 million shares in 2017Q4 were reported.
35,851 were reported by Millennium Management Ltd Liability Co. Bb&T Secs Llc owns 150,570 shares. The Us-based Ancora Limited Liability has invested 0.02% in Capitala Finance Corp. (NASDAQ:CPTA). Asset Mgmt Inc holds 0.04% of its portfolio in Capitala Finance Corp. (NASDAQ:CPTA) for 368,902 shares. Ares Mgmt Lc reported 294,762 shares or 0.07% of all its holdings. Royal State Bank Of Canada invested in 400 shares. Bridgeway Capital Mgmt accumulated 299,380 shares. Manufacturers Life Insurance The owns 0% invested in Capitala Finance Corp. (NASDAQ:CPTA) for 953 shares. California Public Employees Retirement System invested in 40,000 shares. Pnc Fincl Services Group Inc reported 0% stake. Wells Fargo And Mn stated it has 0% in Capitala Finance Corp. (NASDAQ:CPTA). Tower Ltd Llc (Trc) holds 870 shares. Regent Invest Limited Com holds 63,696 shares or 0.17% of its portfolio. Carroll Fincl Assoc reported 136,412 shares or 0.12% of all its holdings. Barclays Public Limited Com invested in 0% or 14 shares.

Since March 22, 2018, it had 3 insider purchases, and 0 insider sales for $79,628 activity.

The stock of Capitala Finance Corp. (CPTA) formed an up wedge with $9.23 target or 8.00 % above today’s $8.55 share price. The 7 months wedge indicates low risk for the $136.64M company. If the $9.23 price target is reached, the company will be worth $10.93M more.
Rising wedges, especially for downward breakouts are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 8% and 24%. The average rise is 28% and the decline is 14%. Wedges has high throwback and pullback rate: 73%, 63% and the percent of wedges meeting target is not more than 50%.

The stock increased 0.83% or $0.07 during the last trading session, reaching $8.55. About 45,544 shares traded. Capitala Finance Corp. (NASDAQ:CPTA) has declined 40.52% since July 16, 2017 and is downtrending. It has underperformed by 53.09% the S&P500.

Analysts await Capitala Finance Corp. (NASDAQ:CPTA) to report earnings on August, 6. They expect $0.27 EPS, up 575.00 % or $0.23 from last year’s $0.04 per share. CPTA’s profit will be $4.31M for 7.92 P/E if the $0.27 EPS becomes a reality. After $0.28 actual EPS reported by Capitala Finance Corp. for the previous quarter, Wall Street now forecasts -3.57 % negative EPS growth.

More important recent Capitala Finance Corp. (NASDAQ:CPTA) news were published by: Businesswire.com which released: “Capitala Finance Corp. Schedules Second Quarter 2018 Earnings Release and Conference Call” on July 05, 2018, also Seekingalpha.com published article titled: “Upcoming Book Value Declines For This Higher Yielding BDC?”, Bizjournals.com published: “Charlotte’s Capitala Group leads $37M investment in NY company” on June 28, 2018. More interesting news about Capitala Finance Corp. (NASDAQ:CPTA) was released by: Businesswire.com and their article: “Capitala Group Leads $37.0 Million Investment in Installs LLC” with publication date: June 27, 2018.

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 company has market cap of $136.64 million. The fund targets companies in the business services, commercial and professional services, manufacturing, consumer and retail, energy, and health-care industries. It has a 79.91 P/E ratio. It typically considers investments in the United States.

Capitala Finance Corp. (NASDAQ:CPTA) Institutional Positions Chart

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