New Mountain Finance (NASDAQ:NMFC) Sets New 52-Week Low – Here’s Why

New Mountain Finance Corporation (NASDAQ:NMFC) shares reached a new 52-week low on Wednesday . The stock traded as low as $7.46 and last traded at $7.5050, with a volume of 57048 shares traded. The stock had previously closed at $7.78.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NMFC. B. Riley Financial lowered their price target on shares of New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating on the stock in a report on Tuesday, March 3rd. Wall Street Zen raised shares of New Mountain Finance from a “sell” rating to a “hold” rating in a research note on Sunday, April 5th. Keefe, Bruyette & Woods decreased their target price on shares of New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating on the stock in a report on Wednesday, March 4th. Wells Fargo & Company lowered their target price on shares of New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 26th. Finally, Weiss Ratings downgraded shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 18th. Five research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $9.25.

New Mountain Finance Stock Performance

The company’s 50-day moving average is $8.10 and its two-hundred day moving average is $8.45. The company has a market capitalization of $706.97 million, a P/E ratio of -12.91 and a beta of 0.54. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 1.26.

New Mountain Finance (NASDAQ:NMFC) last announced its earnings results on Monday, May 4th. The company reported $0.32 earnings per share (EPS) for the quarter, meeting 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 business had revenue of $41.27 million during the quarter, compared to analyst estimates of $67.76 million. During the same period in the previous year, the business posted $0.32 earnings per share. New Mountain Finance’s revenue for the quarter was down 19.7% on a year-over-year basis. Equities analysts anticipate that New Mountain Finance Corporation will post 1.11 earnings per share for the current fiscal year.

New Mountain Finance Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be given a dividend of $0.25 per share. The ex-dividend date is Tuesday, June 16th. This represents a $1.00 annualized dividend and a dividend yield of 13.4%. New Mountain Finance’s dividend payout ratio (DPR) is -172.41%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mackenzie Financial Corp increased its stake in New Mountain Finance by 3.7% in the third quarter. Mackenzie Financial Corp now owns 31,306 shares of the company’s stock valued at $302,000 after acquiring an additional 1,126 shares during the last quarter. CANADA LIFE ASSURANCE Co raised its position in New Mountain Finance by 2.8% during the second quarter. CANADA LIFE ASSURANCE Co now owns 95,805 shares of the company’s stock valued at $1,013,000 after purchasing an additional 2,634 shares in the last quarter. Advyzon Investment Management LLC lifted its stake in New Mountain Finance by 25.3% during the fourth quarter. Advyzon Investment Management LLC now owns 16,080 shares of the company’s stock worth $148,000 after purchasing an additional 3,246 shares during the last quarter. Next Capital Management LLC boosted its holdings in shares of New Mountain Finance by 13.5% in the 4th quarter. Next Capital Management LLC now owns 29,680 shares of the company’s stock worth $273,000 after purchasing an additional 3,530 shares in the last quarter. Finally, Inspire Investing LLC boosted its holdings in shares of New Mountain Finance by 8.5% in the 4th quarter. Inspire Investing LLC now owns 50,906 shares of the company’s stock worth $469,000 after purchasing an additional 4,000 shares in the last quarter. 32.08% of the stock is currently owned by hedge funds and other institutional investors.

New Mountain Finance Company Profile

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.