New Mountain Finance Corporation (NASDAQ:NMFC) Receives Consensus Recommendation of “Reduce” from Analysts

Shares of New Mountain Finance Corporation (NASDAQ:NMFC) have received an average rating of “Reduce” from the seven brokerages that are covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation and five have assigned a hold recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $9.25.

Several research firms have recently commented on NMFC. Wells Fargo & Company reduced their price target on shares of New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 26th. B. Riley Financial lowered their price objective on New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a research report on Tuesday, March 3rd. Zacks Research downgraded New Mountain Finance from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Keefe, Bruyette & Woods decreased their price target on New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating on the stock in a research note on Wednesday, March 4th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of New Mountain Finance in a report on Thursday, January 22nd.

Insider Transactions at New Mountain Finance

In related news, COO Laura C. Holson Boswerger acquired 12,500 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was purchased at an average price of $7.74 per share, with a total value of $96,750.00. Following the transaction, the chief operating officer owned 81,030 shares of the company’s stock, valued at approximately $627,172.20. This trade represents a 18.24% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Adam B. Weinstein purchased 12,900 shares of the stock in a transaction dated Tuesday, March 17th. The shares were purchased at an average price 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. This trade represents a 1.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have purchased 1,200,673 shares of company stock worth $9,662,634. 11.71% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in NMFC. State of Alaska Department of Revenue purchased a new stake in New Mountain Finance during the 3rd quarter worth approximately $47,000. US Bancorp DE purchased a new stake in shares of New Mountain Finance during the third quarter worth $48,000. Advisory Services Network LLC acquired a new stake in shares of New Mountain Finance in the third quarter valued at $65,000. Sound Income Strategies LLC boosted its holdings in New Mountain Finance by 699.5% in the fourth quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock valued at $70,000 after purchasing an additional 6,722 shares during the period. Finally, Alpha Cubed Investments LLC purchased a new position in New Mountain Finance in the fourth quarter valued at $94,000. Hedge funds and other institutional investors own 32.08% of the company’s stock.

New Mountain Finance Price Performance

New Mountain Finance stock opened at $7.65 on Friday. The company has a current ratio of 3.16, a quick ratio of 3.16 and a debt-to-equity ratio of 1.41. The company has a 50-day moving average price of $8.24 and a 200 day moving average price of $9.06. New Mountain Finance has a 12-month low of $7.51 and a 12-month high of $11.20. The stock has a market cap of $789.14 million, a P/E ratio of 51.00 and a beta of 0.59.

New Mountain Finance Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.32 per share. The ex-dividend date is Tuesday, March 17th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 16.7%. New Mountain Finance’s dividend payout ratio (DPR) is currently 853.33%.

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.