New Mountain Finance (NASDAQ:NMFC) Rating Increased to Hold at Zacks Research

Zacks Research upgraded shares of New Mountain Finance (NASDAQ:NMFC) from a strong sell rating to a hold rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Wall Street Zen raised New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a research report on Tuesday, April 21st. Wells Fargo & Company dropped their price objective on 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. B. Riley Financial cut their price objective on New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a report on Tuesday, March 3rd. Finally, 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 for the company in a research note on Wednesday, March 4th. Six research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, New Mountain Finance currently has an average rating of “Reduce” and a consensus target price of $9.25.

New Mountain Finance Stock Down 1.1%

Shares of NMFC stock opened at $8.44 on Wednesday. The firm’s fifty day moving average price is $8.02 and its two-hundred day moving average price is $8.75. The company has a current ratio of 2.02, a quick ratio of 3.16 and a debt-to-equity ratio of 1.26. New Mountain Finance has a 1 year low of $7.47 and a 1 year high of $11.04. The firm has a market capitalization of $797.16 million, a P/E ratio of -14.55 and a beta of 0.57.

New Mountain Finance (NASDAQ:NMFC) last posted its quarterly earnings data on Monday, May 4th. The company reported $0.32 EPS for the quarter, hitting analysts’ consensus estimates of $0.32. The company had revenue of $41.27 million during the quarter, compared to the consensus estimate of $67.76 million. New Mountain Finance had a negative net margin of 18.65% and a positive return on equity of 11.14%. The company’s quarterly revenue was down 19.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.32 EPS. On average, equities analysts predict 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. The ex-dividend date is Tuesday, June 16th. This represents a $1.00 dividend on an annualized basis and a yield of 11.8%. New Mountain Finance’s dividend payout ratio (DPR) is presently -220.69%.

Insiders Place Their Bets

In other New Mountain Finance news, COO Laura C. Holson Boswerger acquired 12,500 shares of the company’s stock in a transaction on Friday, February 27th. The shares were purchased at an average price of $7.74 per share, for a total transaction of $96,750.00. Following the completion of the purchase, the chief operating officer directly owned 81,030 shares of the company’s stock, valued at approximately $627,172.20. This represents a 18.24% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Adam B. Weinstein acquired 12,900 shares of the business’s stock in a transaction dated Tuesday, March 17th. The stock was acquired at an average cost of $7.61 per share, with a total value of $98,169.00. Following the completion of the transaction, the executive vice president owned 751,756 shares of the company’s stock, valued at approximately $5,720,863.16. The trade was a 1.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 1,200,673 shares of company stock valued at $9,662,634 over the last 90 days. 14.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On New Mountain Finance

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NMFC. Sumitomo Mitsui Trust Group Inc. raised its position in shares of New Mountain Finance by 23.4% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 606,264 shares of the company’s stock valued at $5,844,000 after purchasing an additional 114,840 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of New Mountain Finance by 29.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,595,646 shares of the company’s stock worth $15,382,000 after buying an additional 363,443 shares during the last quarter. Muzinich & Co. Inc. boosted its holdings in shares of New Mountain Finance by 26.6% during the 4th quarter. Muzinich & Co. Inc. now owns 849,437 shares of the company’s stock worth $7,823,000 after buying an additional 178,381 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH grew its stake 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 buying an additional 134,500 shares during the last quarter. Finally, Tranquility Partners LLC grew its stake in New Mountain Finance by 36.4% in the 3rd quarter. Tranquility Partners LLC now owns 316,671 shares of the company’s stock valued at $3,053,000 after buying an additional 84,584 shares during the last quarter. 32.08% of the stock is owned by 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.