New Mountain Finance (NASDAQ:NMFC) Reaches New 1-Year Low – Time to Sell?

New Mountain Finance Corporation (NASDAQ:NMFC) hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $7.05 and last traded at $7.07, with a volume of 826789 shares. The stock had previously closed at $7.16.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Weiss Ratings downgraded shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 18th. Keefe, Bruyette & Woods reduced their target price on 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. Wall Street Zen raised New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. Zacks Research raised New Mountain Finance from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 6th. Finally, B. Riley Financial cut their price target on New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating on the stock in a report on Tuesday, March 3rd. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $9.25.

New Mountain Finance Price Performance

The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 1.26. The business has a fifty day simple moving average of $8.03 and a 200 day simple moving average of $8.38. The stock has a market capitalization of $667.76 million, a P/E ratio of -12.19 and a beta of 0.54.

New Mountain Finance (NASDAQ:NMFC) last posted its earnings results on Monday, May 4th. The company reported $0.32 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.32. The company had revenue of $41.27 million for the quarter, compared to analyst estimates of $67.76 million. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.The company’s revenue for the quarter was down 19.7% on a year-over-year basis. During the same quarter last year, the company earned $0.32 earnings per share. On average, analysts expect that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

New Mountain Finance Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 14.1%. The ex-dividend date of this dividend is Tuesday, June 16th. New Mountain Finance’s dividend payout ratio is presently -172.41%.

Hedge Funds Weigh In On New Mountain Finance

A number of hedge funds have recently bought and sold shares of the company. US Bancorp DE bought a new stake in shares of New Mountain Finance in the 3rd quarter worth $48,000. Advisory Services Network LLC bought a new position in shares of New Mountain Finance during the third quarter valued at about $65,000. Sound Income Strategies LLC boosted its holdings in New Mountain Finance by 699.5% during the fourth quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock worth $70,000 after purchasing an additional 6,722 shares during the last quarter. State of Wyoming purchased a new position in New Mountain Finance during the first quarter worth about $71,000. Finally, Catalyst Capital Advisors LLC purchased a new position in New Mountain Finance during the first quarter worth about $93,000. 32.08% of the stock is 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.