MidCap Financial Investment (NASDAQ:MFIC) Shares Gap Down Following Analyst Downgrade

MidCap Financial Investment Corporation (NASDAQ:MFIC)’s stock price gapped down before the market opened on Tuesday after Keefe, Bruyette & Woods lowered their price target on the stock from $13.00 to $11.50. The stock had previously closed at $10.31, but opened at $9.90. Keefe, Bruyette & Woods currently has a market perform rating on the stock. MidCap Financial Investment shares last traded at $10.1750, with a volume of 373,493 shares traded.

Several other research firms have also commented on MFIC. Truist Financial decreased their price objective on shares of MidCap Financial Investment from $15.00 to $13.00 and set a “buy” rating for the company in a research note on Wednesday, March 4th. Wall Street Zen raised MidCap Financial Investment from a “sell” rating to a “hold” rating in a report on Saturday, December 6th. Wells Fargo & Company decreased their price target on shares of MidCap Financial Investment from $11.00 to $9.50 and set an “equal weight” rating on the stock in a research note on Monday, March 2nd. Royal Bank Of Canada decreased their target price on shares of MidCap Financial Investment from $13.00 to $11.00 and set a “sector perform” rating on the stock in a research note on Thursday, March 5th. Finally, Zacks Research upgraded shares of MidCap Financial Investment from a “strong sell” rating to a “hold” rating in a research note on Thursday, December 11th. Two equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, MidCap Financial Investment has an average rating of “Hold” and an average price target of $11.75.

Hedge Funds Weigh In On MidCap Financial Investment

Several institutional investors have recently bought and sold shares of MFIC. Alpine Global Management LLC raised its position in shares of MidCap Financial Investment by 138.6% in the 4th quarter. Alpine Global Management LLC now owns 316,086 shares of the company’s stock valued at $3,616,000 after purchasing an additional 183,586 shares during the last quarter. Virtu Financial LLC boosted its position in shares of MidCap Financial Investment by 22.0% during the 4th quarter. Virtu Financial LLC now owns 26,960 shares of the company’s stock valued at $308,000 after acquiring an additional 4,856 shares during the last quarter. Invesco Ltd. increased its stake in MidCap Financial Investment by 3.5% during the fourth quarter. Invesco Ltd. now owns 911,041 shares of the company’s stock worth $10,422,000 after acquiring an additional 30,604 shares during the last quarter. Papamarkou Wellner Asset Management inc. acquired a new position in shares of MidCap Financial Investment in the 4th quarter worth approximately $194,000. Finally, XTX Topco Ltd acquired a new stake in shares of MidCap Financial Investment during the fourth quarter worth about $1,548,000. 28.45% of the stock is owned by hedge funds and other institutional investors.

MidCap Financial Investment Price Performance

The company has a 50 day moving average of $11.15 and a 200 day moving average of $11.76. The stock has a market capitalization of $945.61 million, a price-to-earnings ratio of 15.50 and a beta of 0.78. The company has a debt-to-equity ratio of 1.53, a quick ratio of 6.65 and a current ratio of 6.65.

MidCap Financial Investment (NASDAQ:MFIC) last posted its earnings results on Thursday, February 26th. The company reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02. The firm had revenue of ($1.38) million for the quarter, compared to the consensus estimate of $78.87 million. MidCap Financial Investment had a net margin of 19.69% and a return on equity of 10.43%. As a group, equities research analysts anticipate that MidCap Financial Investment Corporation will post 1.73 EPS for the current year.

MidCap Financial Investment Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th will be paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 12.1%. The ex-dividend date of this dividend is Tuesday, March 10th. MidCap Financial Investment’s dividend payout ratio (DPR) is 230.30%.

MidCap Financial Investment Company Profile

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a business development company that provides financing solutions to middle-market companies across the United States. The firm specializes in direct lending and asset-based financing, offering a range of debt instruments designed to support working capital needs, equipment acquisitions, lease financing and corporate recapitalizations. Its focus on senior secured loans, unitranche structures and equipment financings positions it to serve clients in sectors such as manufacturing, healthcare, transportation and energy.

Through its lending platform, MidCap Financial Investment Corporation partners with privately held and sponsor-backed companies that typically generate annual revenues between $25 million and $500 million.