New Mountain Finance Corporation (NASDAQ:NMFC) Receives $9.83 Average Price Target from Brokerages

New Mountain Finance Corporation (NASDAQ:NMFC) has been assigned a consensus recommendation of “Reduce” from the seven brokerages that are presently covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $9.25.

A number of brokerages recently issued reports on NMFC. Zacks Research cut New Mountain Finance from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Weiss Ratings reiterated a “hold (c-)” rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods lowered 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 report on Wednesday. B. Riley Financial cut 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 report on Tuesday. Finally, Wells Fargo & Company reduced 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 research note on Thursday, February 26th.

Insider Transactions at New Mountain Finance

In related news, Director Steven B. Klinsky purchased 237,873 shares of the firm’s stock in a transaction dated Thursday, March 5th. The shares were purchased at an average cost of $8.10 per share, for a total transaction of $1,926,771.30. Following the completion of the transaction, the director directly owned 5,037,524 shares in the company, valued at approximately $40,803,944.40. This represents a 4.96% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Laura C. Holson Boswerger purchased 12,500 shares of the stock in a transaction dated Friday, February 27th. The stock was purchased at an average cost 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 represents a 18.24% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 687,773 shares of company stock worth $5,539,465 in the last three months. 11.71% of the stock is currently owned by insiders.

Institutional Trading of New Mountain Finance

Hedge funds and other institutional investors have recently bought and sold shares of the company. MTM Investment Management LLC bought a new position in New Mountain Finance in the 2nd quarter valued at $38,000. State of Alaska Department of Revenue bought a new stake in New Mountain Finance during the third quarter valued at $47,000. Huntington National Bank grew its position in New Mountain Finance by 311.8% during the second quarter. Huntington National Bank now owns 4,534 shares of the company’s stock worth $48,000 after buying an additional 3,433 shares in the last quarter. US Bancorp DE bought a new position in New Mountain Finance in the 3rd quarter worth about $48,000. Finally, Advisory Services Network LLC purchased a new stake in shares of New Mountain Finance in the 3rd quarter valued at about $65,000. Institutional investors own 32.08% of the company’s stock.

Key Headlines Impacting New Mountain Finance

Here are the key news stories impacting New Mountain Finance this week:

• Positive Sentiment: Director Steven B. Klinsky completed multiple purchases in early March — roughly 675,000 shares bought across March 3–5, representing a multi‑million dollar accumulation. Large insider buys signal management confidence in the company’s outlook and can support the stock. InsiderTrades: Klinsky Acquires Shares
• Neutral Sentiment: The company declared a quarterly dividend of $0.32 (payable March 31; ex-dividend March 17), which provides a very high yield that may appeal to income investors but also requires scrutiny of sustainability. Detailed dividend and company profile available here. MarketBeat: NMFC Dividend & Profile
• Negative Sentiment: Analysts have been cutting targets and taking a more cautious stance: B. Riley lowered its target and other firms have trimmed price objectives, leaving a consensus “Reduce”/Hold tilt and a consensus target below recent highs. Analyst pessimism is a near-term headwind. MarketBeat: Analyst Notes on NMFC
• Negative Sentiment: Dividend sustainability is a major concern: the reported annualized dividend implies an extremely high payout ratio (reported ~853%), which investors often view as unsustainable for a BDC and can pressure the share price if cash flows or NAV come under stress. MarketBeat: Dividend & Payout Ratio
• Negative Sentiment: Independent research and bearish commentary (including a pessimistic forecast cited by B. Riley) add selling pressure and may explain the weaker intraday performance. AmericanBankingNews: B. Riley Forecast

New Mountain Finance Stock Performance

Shares of NMFC opened at $7.98 on Monday. New Mountain Finance has a 1 year low of $7.52 and a 1 year high of $11.46. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.16 and a quick ratio of 3.16. The stock’s fifty day moving average price is $8.62 and its two-hundred day moving average price is $9.32. The firm has a market cap of $823.22 million, a PE ratio of 53.20 and a beta of 0.59.

New Mountain Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 16.0%. The ex-dividend date is Tuesday, March 17th. New Mountain Finance’s 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.