Why Capitala Finance Corp. Stock Dropped 14% Today
Shares of Capitala Finance Corp. (NASDAQ: CPTA) are down by nearly 14% as of 2:00 p.m. EDT after the company's second-quarter earnings results revealed credit deterioration in some of its largest portfolio investments.
The bite-sized business lender has a growing list of problematic loans that are performing so poorly that the company no longer recognizes income from them. This quarter, Capitala reported that six investments were on non-accrual status, up from three investments on non-accrual as of its previous quarterly report.
Investors are worried that the clock is ticking on Capitala's outsize dividend yield. Image source: Getty Images.
Source: Fool.com
