New Mountain Finance Corporation (NASDAQ:NMFC) Receives Consensus Recommendation of “Reduce” from Analysts

Shares of New Mountain Finance Corporation (NASDAQ:NMFC) have earned a consensus rating of “Reduce” from the seven analysts that are currently covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation and five have assigned a hold recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $9.25.

A number of brokerages recently issued reports on NMFC. Wall Street Zen upgraded shares of New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. Zacks Research upgraded shares of New Mountain Finance from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th. Wells Fargo & Company dropped their target price on shares of New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a research report on Thursday, February 26th. B. Riley Financial dropped their target price 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. Finally, Weiss Ratings cut shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 18th.

New Mountain Finance Price Performance

New Mountain Finance stock opened at $7.89 on Wednesday. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.02 and a quick ratio of 2.02. The company has a market capitalization of $745.21 million, a PE ratio of -13.60 and a beta of 0.54. New Mountain Finance has a one year low of $7.47 and a one year high of $10.98. The business has a 50 day simple moving average of $8.09 and a 200 day simple moving average of $8.51.

New Mountain Finance (NASDAQ:NMFC) last posted its earnings results on Monday, May 4th. The company reported $0.32 EPS 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%.New Mountain Finance’s revenue was down 19.7% on a year-over-year basis. During the same quarter last year, the company earned $0.32 EPS. On average, sell-side analysts forecast that New Mountain Finance will post 1.11 EPS for the current fiscal year.

New Mountain Finance Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 12.7%. The ex-dividend date of this dividend is Tuesday, June 16th. New Mountain Finance’s dividend payout ratio (DPR) is currently -220.69%.

Insiders Place Their Bets

In other New Mountain Finance news, EVP Adam B. Weinstein purchased 12,900 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was purchased at an average cost of $7.61 per share, with a total value of $98,169.00. Following the acquisition, the executive vice president directly owned 751,756 shares of the company’s stock, valued at approximately $5,720,863.16. This trade represents a 1.75% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. 14.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On New Mountain Finance

Hedge funds and other institutional investors have recently bought and sold shares of the business. US Bancorp DE acquired a new stake in New Mountain Finance during the 3rd quarter valued at $48,000. Advisory Services Network LLC acquired a new stake in New Mountain Finance in the 3rd quarter valued at about $65,000. Sound Income Strategies LLC increased its position in New Mountain Finance by 699.5% in the 4th quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock valued at $70,000 after acquiring an additional 6,722 shares in the last quarter. State of Wyoming acquired a new stake in New Mountain Finance in the 1st quarter valued at about $71,000. Finally, Catalyst Capital Advisors LLC acquired a new stake in New Mountain Finance in the 1st quarter valued at about $93,000. 32.08% of the stock is owned by institutional investors and hedge funds.

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.