Short Interest in New Mountain Finance Corporation (NASDAQ:NMFC) Rises By 19.6%

New Mountain Finance Corporation (NASDAQ:NMFC) was the target of a significant increase in short interest in the month of March. As of March 13th, there was short interest totaling 2,328,255 shares, an increase of 19.6% from the February 26th total of 1,946,797 shares. Based on an average trading volume of 1,689,409 shares, the days-to-cover ratio is currently 1.4 days. Approximately 2.6% of the company’s shares are short sold.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Wall Street Zen lowered New Mountain Finance from a “hold” rating to a “sell” rating in a research note on Saturday. Zacks Research lowered shares of New Mountain Finance from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Keefe, Bruyette & Woods reduced their price target on shares of New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating on the stock in a research note on Wednesday, March 4th. Wells Fargo & Company decreased their price objective on shares of New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a report on Thursday, February 26th. Finally, B. Riley Financial lowered their price objective on shares of New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a research report on Tuesday, March 3rd. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, New Mountain Finance presently has an average rating of “Reduce” and a consensus target price of $9.25.

Insider Transactions at New Mountain Finance

In other New Mountain Finance news, Director Steven B. Klinsky bought 276,242 shares of the business’s stock in a transaction dated Wednesday, March 11th. The shares were purchased at an average price of $8.05 per share, with a total value of $2,223,748.10. Following the completion of the purchase, the director owned 5,370,858 shares in the company, valued at $43,235,406.90. This represents a 5.42% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, COO Laura C. Holson Boswerger purchased 12,500 shares of New Mountain Finance stock in a transaction dated Friday, February 27th. The stock was acquired at an average price of $7.74 per share, for a total transaction of $96,750.00. Following the completion of the acquisition, the chief operating officer owned 81,030 shares of the company’s stock, valued at approximately $627,172.20. This trade represents a 18.24% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders bought 1,200,673 shares of company stock worth $9,662,634. 11.71% of the stock is currently owned by insiders.

Hedge Funds Weigh In On New Mountain Finance

Hedge funds and other institutional investors have recently modified their holdings of the business. Millennium Management LLC lifted its holdings in New Mountain Finance by 36.9% during the first quarter. Millennium Management LLC now owns 711,050 shares of the company’s stock worth $7,843,000 after buying an additional 191,518 shares during the period. Cetera Investment Advisers increased its holdings in shares of New Mountain Finance by 45.6% in the 2nd quarter. Cetera Investment Advisers now owns 35,164 shares of the company’s stock valued at $371,000 after acquiring an additional 11,018 shares during the period. Franklin Resources Inc. raised its position in shares of New Mountain Finance by 18.1% in the 2nd quarter. Franklin Resources Inc. now owns 643,433 shares of the company’s stock worth $6,788,000 after acquiring an additional 98,603 shares in the last quarter. XTX Topco Ltd purchased a new stake in shares of New Mountain Finance during the 2nd quarter worth $172,000. Finally, Lido Advisors LLC lifted its stake in shares of New Mountain Finance by 38.0% during the 2nd quarter. Lido Advisors LLC now owns 33,240 shares of the company’s stock worth $351,000 after purchasing an additional 9,159 shares during the last quarter. 32.08% of the stock is currently owned by institutional investors.

New Mountain Finance Stock Up 1.8%

Shares of NMFC traded up $0.14 during midday trading on Tuesday, reaching $7.76. 1,876,392 shares of the stock were exchanged, compared to its average volume of 1,259,773. New Mountain Finance has a 52 week low of $7.47 and a 52 week high of $11.18. The company has a current ratio of 3.16, a quick ratio of 3.16 and a debt-to-equity ratio of 1.41. The company’s 50 day moving average is $8.17 and its two-hundred day moving average is $9.00. The company has a market capitalization of $800.52 million, a P/E ratio of 51.73 and a beta of 0.59.

New Mountain Finance Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be given a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 16.5%. The ex-dividend date of this dividend is Tuesday, March 17th. New Mountain Finance’s dividend payout ratio is presently 853.33%.

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.