New Mountain Finance (NASDAQ:NMFC) Sets New 52-Week Low – Should You Sell?

Shares of New Mountain Finance Corporation (NASDAQ:NMFC) hit a new 52-week low on Thursday . The stock traded as low as $6.73 and last traded at $6.8050, with a volume of 401467 shares trading hands. The stock had previously closed at $6.92.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on NMFC. Weiss Ratings lowered shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 18th. Keefe, Bruyette & Woods decreased their target price on shares of New Mountain Finance from $9.00 to $8.00 and set a “market perform” rating on the stock in a research report on Monday, July 20th. 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. Finally, Zacks Research upgraded New Mountain Finance from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 6th. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $9.08.

New Mountain Finance Stock 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 company has a market capitalization of $646.05 million, a price-to-earnings ratio of -11.79 and a beta of 0.55. The stock has a 50-day simple moving average of $7.45 and a 200-day simple moving average of $8.00.

New Mountain Finance (NASDAQ:NMFC) last announced its quarterly earnings data on Monday, May 4th. The company reported $0.32 earnings per share for the quarter, hitting 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 company had revenue of $41.27 million during the quarter, compared to analyst estimates of $67.76 million. During the same period last year, the business earned $0.32 EPS. The firm’s revenue for the quarter was down 19.7% compared to the same quarter last year. On average, analysts anticipate that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

Institutional Investors Weigh In On New Mountain Finance

Institutional investors have recently modified their holdings of the business. Millennium Management LLC lifted its stake in New Mountain Finance by 36.9% in the first quarter. Millennium Management LLC now owns 711,050 shares of the company’s stock valued at $7,843,000 after buying an additional 191,518 shares during the last quarter. Cetera Investment Advisers boosted its stake in New Mountain Finance by 45.6% during the 2nd quarter. Cetera Investment Advisers now owns 35,164 shares of the company’s stock valued at $371,000 after purchasing an additional 11,018 shares in the last quarter. XTX Topco Ltd bought a new position in New Mountain Finance during the second quarter valued at about $172,000. Quantbot Technologies LP acquired a new position in shares of New Mountain Finance in the 2nd quarter worth approximately $199,000. Finally, Marshall Wace LLP acquired a new position in New Mountain Finance in the second quarter worth approximately $2,303,000. Institutional investors own 32.08% of the company’s stock.

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.