New Mountain Finance Corporation (NASDAQ:NMFC) Receives $8.60 Consensus Price Target from Analysts

New Mountain Finance Corporation (NASDAQ:NMFC) has been assigned an average rating of “Reduce” from the six research firms that are currently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation and four have assigned a hold recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $8.60.

A number of research analysts have issued reports on the company. Zacks Research upgraded New Mountain Finance from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 6th. Weiss Ratings reiterated a “sell (d+)” rating on shares of New Mountain Finance in a research note on Thursday, August 13th. Wells Fargo & Company cut their price target on shares of New Mountain Finance from $8.00 to $7.50 and set an “equal weight” rating on the stock in a report on Wednesday, August 5th. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of New Mountain Finance from $9.00 to $8.00 and set a “market perform” rating for the company in a report on Monday, July 20th.

New Mountain Finance Price Performance

Shares of NMFC opened at $7.54 on Monday. The firm has a market cap of $712.15 million, a PE ratio of -16.04 and a beta of 0.55. New Mountain Finance has a 52-week low of $6.73 and a 52-week high of $10.71. The business’s 50 day moving average price is $7.25 and its two-hundred day moving average price is $7.75. The company has a debt-to-equity ratio of 1.30, a quick ratio of 3.66 and a current ratio of 3.66.

New Mountain Finance (NASDAQ:NMFC) last issued its quarterly earnings data on Monday, August 3rd. The company reported $0.26 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.26. The firm had revenue of $39.02 million during the quarter, compared to analysts’ expectations of $62.78 million. New Mountain Finance had a negative net margin of 16.78% and a positive return on equity of 10.94%. During the same period last year, the company earned $0.32 earnings per share. On average, equities analysts anticipate that New Mountain Finance will post 1.1 EPS for the current year.

New Mountain Finance Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $0.25 per share. The ex-dividend date is Wednesday, September 16th. This represents a $1.00 annualized dividend and a dividend yield of 13.3%. New Mountain Finance’s dividend payout ratio is presently -212.77%.

Hedge Funds Weigh In On New Mountain Finance

Several hedge funds have recently made changes to their positions in NMFC. Corient Private Wealth LP grew its position in shares of New Mountain Finance by 29.2% during the 2nd quarter. Corient Private Wealth LP now owns 1,125,657 shares of the company’s stock valued at $8,071,000 after purchasing an additional 254,361 shares in the last quarter. Rivernorth Capital Management LLC purchased a new stake in shares of New Mountain Finance in the second quarter worth $1,008,000. Flputnam Investment Management Co. bought a new stake in New Mountain Finance during the second quarter valued at $249,000. Van ECK Associates Corp boosted its stake in New Mountain Finance by 19.4% during the second quarter. Van ECK Associates Corp now owns 2,145,047 shares of the company’s stock valued at $15,380,000 after buying an additional 348,872 shares during the period. Finally, Entropy Technologies LP purchased a new position in New Mountain Finance during the first quarter worth about $186,000. 32.08% of the stock is currently owned by hedge funds and other institutional investors.

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.