Is Capitala Finance Corp. (CPTA)’s Fuel Running High? The Stock Formed Bullish Wedge Up Pattern

September 8, 2018 - By Lisa Delgado

Capitala Finance Corp. (NASDAQ:CPTA) Logo

Investors sentiment decreased to 0.93 in 2018 Q1. Its down 0.50, from 1.43 in 2017Q4. It turned negative, 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.
Ancora Advisors Lc accumulated 60,000 shares or 0.02% of the stock. 228,737 were reported by Kemper. Bb&T Limited Com invested in 150,570 shares or 0.01% of the stock. Carroll Financial Associates reported 136,412 shares. Manufacturers Life The has invested 0% in Capitala Finance Corp. (NASDAQ:CPTA). The New York-based Tower Capital Ltd Liability Com (Trc) has invested 0% in Capitala Finance Corp. (NASDAQ:CPTA). Morgan Stanley owns 23,063 shares. Regent Investment Mngmt Ltd Liability Company reported 63,696 shares or 0.17% of all its holdings. Pnc Fincl Services Gp, a Pennsylvania-based fund reported 1,800 shares. Ares Mngmt Ltd owns 294,762 shares. 1 are owned by Wells Fargo Mn. 299,380 are owned by Bridgeway Management. 500 were reported by Us Natl Bank De. California-based California Pub Employees Retirement Sys has invested 0% in Capitala Finance Corp. (NASDAQ:CPTA). United Kingdom-based Barclays Public Ltd Liability Corp has invested 0% in Capitala Finance Corp. (NASDAQ:CPTA).

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

The stock of Capitala Finance Corp. (CPTA) formed an up wedge with $9.60 target or 9.00 % above today’s $8.81 share price. The 9 months wedge indicates low risk for the $140.97M company. If the $9.60 price target is reached, the company will be worth $12.69M 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 decreased 0.56% or $0.05 during the last trading session, reaching $8.81. About 41,752 shares traded. Capitala Finance Corp. (NASDAQ:CPTA) has declined 40.52% since September 8, 2017 and is downtrending. It has underperformed by 53.09% the S&P500.

Analysts await Capitala Finance Corp. (NASDAQ:CPTA) to report earnings on November, 5. They expect $0.25 EPS, down 10.71 % or $0.03 from last year’s $0.28 per share. CPTA’s profit will be $4.00M for 8.81 P/E if the $0.25 EPS becomes a reality. After $0.22 actual EPS reported by Capitala Finance Corp. for the previous quarter, Wall Street now forecasts 13.64 % EPS growth.

More news for Capitala Finance Corp. (NASDAQ:CPTA) were recently published by: Globenewswire.com, which released: “Capitala Group Announces Portfolio Exits Totaling $36.6 Million” on August 22, 2018. Globenewswire.com‘s article titled: “Capitala Group Leads $50.0 Million Unitranche Credit Facility” and published on September 05, 2018 is yet another important article.

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 $140.97 million. The fund targets companies in the business services, commercial and professional services, manufacturing, consumer and retail, energy, and health-care industries. It currently has negative earnings. It typically considers investments in the United States.

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

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