New Mountain Finance Corporation (NASDAQ:NMFC) Given Average Recommendation of “Reduce” by Brokerages

New Mountain Finance Corporation (NASDAQ:NMFC) has been given a consensus rating of “Reduce” by the seven research firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $9.25.

A number of brokerages have issued reports on NMFC. Weiss Ratings downgraded New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday. Wells Fargo & Company decreased their price target on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a report on Thursday, February 26th. Zacks Research raised New Mountain Finance from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 6th. 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. Finally, B. Riley Financial reduced their target price on New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a research note on Tuesday, March 3rd.

New Mountain Finance Price Performance

Shares of NMFC stock opened at $8.12 on Friday. New Mountain Finance has a fifty-two week low of $7.47 and a fifty-two week high of $11.04. The firm has a market capitalization of $766.93 million, a price-to-earnings ratio of -14.00 and a beta of 0.57. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.02 and a current ratio of 2.02. The stock’s 50-day simple moving average is $8.05 and its 200-day simple moving average is $8.66.

New Mountain Finance (NASDAQ:NMFC) last released its earnings results on Monday, May 4th. The company reported $0.32 EPS for the quarter, hitting analysts’ consensus estimates of $0.32. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.The firm had revenue of $41.27 million during the quarter, compared to the consensus estimate of $67.76 million. During the same quarter in the previous year, the company posted $0.32 earnings per share. The company’s revenue was down 19.7% compared to the same quarter last year. As a group, equities analysts forecast that New Mountain Finance will post 1.11 earnings per share for the current fiscal year.

New Mountain Finance Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 12.3%. The ex-dividend date of this dividend is Tuesday, June 16th. New Mountain Finance’s dividend payout ratio is presently -220.69%.

Insider Buying and Selling

In other news, Director Steven B. Klinsky purchased 276,242 shares of the company’s stock in a transaction that occurred on Wednesday, March 11th. The stock was purchased at an average cost of $8.05 per share, for a total transaction of $2,223,748.10. Following the completion of the transaction, the director owned 5,370,858 shares of the company’s stock, valued at $43,235,406.90. This trade represents a 5.42% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Adam B. Weinstein purchased 12,900 shares of the company’s stock in a transaction that occurred on 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 directly owned 751,756 shares of the company’s stock, valued at $5,720,863.16. This represents a 1.75% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 1,200,673 shares of company stock worth $9,662,634. 14.90% of the stock is owned by corporate insiders.

Institutional Trading of New Mountain Finance

Several large investors have recently added to or reduced their stakes in the stock. Mackenzie Financial Corp grew its holdings in New Mountain Finance by 3.7% in the 3rd quarter. Mackenzie Financial Corp now owns 31,306 shares of the company’s stock valued at $302,000 after buying an additional 1,126 shares in the last quarter. CANADA LIFE ASSURANCE Co grew its holdings in New Mountain Finance by 2.8% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 95,805 shares of the company’s stock valued at $1,013,000 after buying an additional 2,634 shares in the last quarter. Advyzon Investment Management LLC grew its holdings in New Mountain Finance by 25.3% in the 4th quarter. Advyzon Investment Management LLC now owns 16,080 shares of the company’s stock valued at $148,000 after buying an additional 3,246 shares in the last quarter. Next Capital Management LLC grew its holdings in New Mountain Finance by 13.5% in the 4th quarter. Next Capital Management LLC now owns 29,680 shares of the company’s stock valued at $273,000 after buying an additional 3,530 shares in the last quarter. Finally, Inspire Investing LLC grew its holdings in New Mountain Finance by 8.5% in the 4th quarter. Inspire Investing LLC now owns 50,906 shares of the company’s stock valued at $469,000 after buying an additional 4,000 shares in the last quarter. 32.08% of the stock is currently 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.