Next Capital Management LLC Makes New Investment in New Mountain Finance Corporation $NMFC

Next Capital Management LLC acquired a new stake in New Mountain Finance Corporation (NASDAQ:NMFC) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 26,150 shares of the company’s stock, valued at approximately $276,000.

A number of other institutional investors have also modified their holdings of the company. Truist Financial Corp acquired a new stake in shares of New Mountain Finance in the second quarter worth $167,000. Arlington Capital Management Inc. purchased a new stake in New Mountain Finance during the 2nd quarter worth $947,000. Sumitomo Mitsui Trust Group Inc. increased its holdings in New Mountain Finance by 26.9% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 491,424 shares of the company’s stock valued at $5,185,000 after purchasing an additional 104,248 shares in the last quarter. Invesco Ltd. raised its position in New Mountain Finance by 10.7% in the first quarter. Invesco Ltd. now owns 1,091,476 shares of the company’s stock valued at $12,039,000 after purchasing an additional 105,559 shares during the period. Finally, Russell Investments Group Ltd. acquired a new position in shares of New Mountain Finance during the first quarter worth about $581,000. Hedge funds and other institutional investors own 32.08% of the company’s stock.

Analyst Upgrades and Downgrades

NMFC has been the subject of a number of recent research reports. Oppenheimer set a $11.00 target price on New Mountain Finance and gave the company a “market perform” rating in a research note on Wednesday, August 6th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a research report on Wednesday, October 8th. New Street Research set a $10.00 price objective on shares of New Mountain Finance in a research note on Friday, October 10th. Bank of America reissued an “underperform” rating and set a $10.00 target price (down from $11.75) on shares of New Mountain Finance in a research report on Monday, September 15th. Finally, Zacks Research downgraded shares of New Mountain Finance from a “hold” rating to a “strong sell” rating in a research note on Monday, October 13th. Five research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, New Mountain Finance has a consensus rating of “Reduce” and an average target price of $10.50.

New Mountain Finance Price Performance

NMFC stock opened at $9.69 on Tuesday. The stock’s 50 day moving average is $9.82 and its two-hundred day moving average is $10.24. New Mountain Finance Corporation has a 52-week low of $8.84 and a 52-week high of $12.05. The company has a market capitalization of $1.03 billion, a PE ratio of 12.75 and a beta of 0.77. The company has a quick ratio of 1.42, a current ratio of 1.42 and a debt-to-equity ratio of 1.35.

New Mountain Finance (NASDAQ:NMFC) last released its earnings results on Monday, November 3rd. The company reported $0.32 EPS for the quarter, meeting the consensus estimate of $0.32. New Mountain Finance had a return on equity of 10.43% and a net margin of 23.27%.The business’s revenue for the quarter was down 15.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.34 earnings per share. Analysts predict that New Mountain Finance Corporation will post 1.39 earnings per share for the current fiscal year.

New Mountain Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Wednesday, December 17th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 13.2%. The ex-dividend date of this dividend is Wednesday, December 17th. New Mountain Finance’s dividend payout ratio (DPR) is currently 168.42%.

Insider Activity

In related news, Director Steven B. Klinsky bought 106,691 shares of the business’s stock in a transaction dated Tuesday, September 16th. The shares were acquired at an average price of $9.78 per share, for a total transaction of $1,043,437.98. Following the purchase, the director owned 4,370,857 shares in the company, valued at $42,746,981.46. This trade represents a 2.50% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Adam B. Weinstein purchased 49,750 shares of the firm’s stock in a transaction that occurred on Monday, September 15th. The stock was purchased at an average price of $10.03 per share, with a total value of $498,992.50. Following the completion of the purchase, the executive vice president directly owned 652,490 shares of the company’s stock, valued at approximately $6,544,474.70. This represents a 8.25% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 157,191 shares of company stock valued at $1,550,035 in the last three months. Insiders own 11.71% of the company’s stock.

About New Mountain Finance

New Mountain Finance Corporation (Nasdaq: NMFC), a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes, and mezzanine securities.