New Mountain Finance (NASDAQ:NMFC) Reaches New 1-Year Low – What’s Next?

New Mountain Finance Corporation (NASDAQ:NMFC) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $8.43 and last traded at $8.50, with a volume of 264421 shares trading hands. The stock had previously closed at $8.61.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. New Street Research set a $10.00 price target on shares of New Mountain Finance in a research note on Friday, October 10th. Weiss Ratings reiterated a “hold (c-)” rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods reduced their target price on New Mountain Finance from $11.00 to $10.00 and set a “market perform” rating on the stock in a report on Wednesday, November 5th. B. Riley reissued a “neutral” rating and set a $10.00 target price (down previously from $11.00) on shares of New Mountain Finance in a research report on Wednesday, November 5th. Finally, Zacks Research upgraded New Mountain Finance from a “strong sell” rating to a “hold” rating in a report on Monday, November 24th. Six investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $10.17.

New Mountain Finance Price Performance

The stock has a market capitalization of $867.58 million, a PE ratio of 12.94 and a beta of 0.58. The stock’s fifty day moving average is $9.23 and its 200-day moving average is $9.68. The company has a debt-to-equity ratio of 1.40, a current ratio of 1.99 and a quick ratio of 1.99.

New Mountain Finance (NASDAQ:NMFC) last released its earnings results on Monday, November 3rd. The company reported $0.32 earnings per share for the quarter, meeting the consensus estimate of $0.32. New Mountain Finance had a return on equity of 10.42% and a net margin of 20.84%.The business had revenue of $80.53 million for the quarter, compared to the consensus estimate of $83.91 million. During the same quarter last year, the business posted $0.34 earnings per share. The business’s quarterly revenue was down 15.5% compared to the same quarter last year. As a group, equities analysts predict that New Mountain Finance Corporation will post 1.39 earnings per share for the current fiscal year.

Institutional Trading of New Mountain Finance

A number of hedge funds and other institutional investors have recently made changes to their positions in NMFC. UBS Group AG boosted its stake in New Mountain Finance by 33.4% during the 4th quarter. UBS Group AG now owns 1,541,128 shares of the company’s stock valued at $14,194,000 after acquiring an additional 385,891 shares during the last quarter. JPMorgan Chase & Co. grew its stake in shares of New Mountain Finance by 29.5% in the third quarter. JPMorgan Chase & Co. now owns 1,595,646 shares of the company’s stock worth $15,382,000 after purchasing an additional 363,443 shares in the last quarter. Transcend Capital Advisors LLC increased its stake in shares of New Mountain Finance by 68.5% during the second quarter. Transcend Capital Advisors LLC now owns 714,104 shares of the company’s stock valued at $7,534,000 after acquiring an additional 290,320 shares during the period. Acadian Asset Management LLC raised its position in New Mountain Finance by 266.7% in the second quarter. Acadian Asset Management LLC now owns 345,926 shares of the company’s stock worth $3,647,000 after acquiring an additional 251,596 shares in the last quarter. Finally, Marshall Wace LLP bought a new stake in New Mountain Finance during the second quarter worth approximately $2,303,000. Institutional investors and hedge funds own 32.08% of the company’s stock.

New Mountain Finance Company Profile

New Mountain Finance Corp. is a closed-end, externally managed business development company (BDC) that provides customized debt and equity capital solutions to U.S. middle-market companies. As a BDC organized under the Investment Company Act of 1940, New Mountain Finance invests in sponsor-backed and founder-led businesses that span a range of industry sectors, with a focus on companies demonstrating resilient growth and recurring revenue streams.

The company’s investment portfolio typically includes first-lien senior secured loans, second-lien and junior debt instruments, mezzanine financing and equity co-investments.