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

New Mountain Finance Corporation (NASDAQ:NMFC) has earned an average rating of “Reduce” from the seven ratings firms that are currently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $9.25.

NMFC has been the subject of a number of research reports. Wall Street Zen upgraded shares of New Mountain Finance from a “sell” rating to a “hold” rating in a report on Sunday, April 5th. Weiss Ratings lowered shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 18th. Finally, Zacks Research raised shares of New Mountain Finance from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in NMFC. Muzinich & Co. Inc. raised its position in shares of New Mountain Finance by 26.6% during the fourth quarter. Muzinich & Co. Inc. now owns 849,437 shares of the company’s stock worth $7,823,000 after purchasing an additional 178,381 shares during the period. LSV Asset Management lifted its holdings in shares of New Mountain Finance by 13.4% in the 4th quarter. LSV Asset Management now owns 2,986,718 shares of the company’s stock worth $27,508,000 after purchasing an additional 353,062 shares in the last quarter. JPMorgan Chase & Co. grew its position in New Mountain Finance by 29.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,595,646 shares of the company’s stock valued at $15,382,000 after purchasing an additional 363,443 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH grew its position in New Mountain Finance by 64.2% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 344,000 shares of the company’s stock valued at $3,168,000 after purchasing an additional 134,500 shares during the period. Finally, Closed End Fund Advisors Inc. bought a new stake in New Mountain Finance during the 4th quarter valued at $5,398,000. Institutional investors own 32.08% of the company’s stock.

New Mountain Finance Price Performance

New Mountain Finance stock opened at $7.15 on Friday. The stock has a market capitalization of $675.32 million, a price-to-earnings ratio of -12.33 and a beta of 0.55. New Mountain Finance has a 52-week low of $6.80 and a 52-week high of $10.90. The stock’s 50 day moving average price is $7.82 and its two-hundred day moving average price is $8.23. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.02 and a current ratio of 2.02.

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

New Mountain Finance Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 14.0%. The ex-dividend date of this dividend was Tuesday, June 16th. New Mountain Finance’s dividend payout ratio is -172.41%.

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.