New Mountain Finance Corporation (NASDAQ:NMFC) Given Consensus Rating of “Reduce” by Analysts

Shares of New Mountain Finance Corporation (NASDAQ:NMFC) have received a consensus recommendation of “Reduce” from the seven brokerages that are currently covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $9.25.

Several equities research analysts have weighed in on the company. Zacks Research raised New Mountain Finance from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 6th. Weiss Ratings downgraded New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 18th. Keefe, Bruyette & Woods reduced their price objective on New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating for the company in a research note on Wednesday, March 4th. Wall Street Zen upgraded New Mountain Finance from a “sell” rating to a “hold” rating in a research note on Sunday, April 5th. Finally, Wells Fargo & Company reduced their price objective on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a research note on Thursday, February 26th.

New Mountain Finance Price Performance

Shares of NASDAQ NMFC opened at $7.95 on Wednesday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.02 and a current ratio of 2.02. The company has a market cap of $750.88 million, a PE ratio of -13.71 and a beta of 0.54. The business has a 50-day simple moving average of $8.11 and a two-hundred day simple moving average of $8.48. New Mountain Finance has a fifty-two week low of $7.47 and a fifty-two week high of $10.90.

New Mountain Finance (NASDAQ:NMFC) last issued its quarterly earnings results on Monday, May 4th. The company reported $0.32 earnings per share for the quarter, hitting the consensus estimate of $0.32. The business had revenue of $41.27 million during the quarter, compared to the consensus estimate of $67.76 million. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.The company’s quarterly revenue was down 19.7% on a year-over-year basis. During the same quarter last year, the company earned $0.32 earnings per share. As a group, equities analysts expect that New Mountain Finance will post 1.11 EPS for the current fiscal year.

New Mountain Finance Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 12.6%. The ex-dividend date is Tuesday, June 16th. New Mountain Finance’s dividend payout ratio (DPR) is presently -220.69%.

Insider Activity

In other news, EVP Adam B. Weinstein acquired 12,900 shares of New Mountain Finance stock in a transaction dated Tuesday, March 17th. The stock was purchased at an average cost of $7.61 per share, for a total transaction of $98,169.00. Following the completion of the purchase, the executive vice president directly owned 751,756 shares in the company, valued at $5,720,863.16. This trade represents a 1.75% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 14.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. US Bancorp DE purchased a new position in shares of New Mountain Finance in the third quarter worth about $48,000. Advisory Services Network LLC purchased a new position in shares of New Mountain Finance in the third quarter worth about $65,000. Sound Income Strategies LLC raised its stake in shares of New Mountain Finance by 699.5% in the fourth quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock worth $70,000 after purchasing an additional 6,722 shares during the last quarter. State of Wyoming purchased a new position in shares of New Mountain Finance in the first quarter worth about $71,000. Finally, United Capital Financial Advisors LLC purchased a new position in shares of New Mountain Finance in the third quarter worth about $97,000. 32.08% of the stock is currently owned by hedge funds and other institutional investors.

About New Mountain Finance

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.