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

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

A number of equities analysts have weighed in on NMFC shares. Weiss Ratings reiterated a “hold (c-)” rating on shares of New Mountain Finance in a research note on Thursday, January 22nd. Zacks Research downgraded New Mountain Finance from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Wells Fargo & Company lowered their price objective on 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. Keefe, Bruyette & Woods dropped their price objective on shares of 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, B. Riley Financial cut their target price on shares of New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a report on Tuesday, March 3rd.

Insiders Place Their Bets

In other news, COO Laura C. Holson Boswerger bought 12,500 shares of the stock in a transaction dated Friday, February 27th. The shares were acquired at an average cost of $7.74 per share, with a total value of $96,750.00. Following the purchase, the chief operating officer directly owned 81,030 shares in the company, valued at $627,172.20. The trade was a 18.24% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Steven B. Klinsky purchased 276,242 shares of the business’s stock in a transaction that occurred on Wednesday, March 11th. The stock was acquired at an average price of $8.05 per share, with a total value of $2,223,748.10. Following the purchase, the director owned 5,370,858 shares in the company, valued at $43,235,406.90. This represents a 5.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders bought 1,200,673 shares of company stock worth $9,662,634. Company insiders own 11.71% of the company’s stock.

Institutional Investors Weigh In On New Mountain Finance

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rivernorth Capital Management LLC acquired a new position in New Mountain Finance during the fourth quarter worth about $12,326,000. Corient Private Wealth LLC acquired a new position in shares of New Mountain Finance during the 4th quarter worth approximately $7,450,000. Closed End Fund Advisors Inc. purchased a new stake in shares of New Mountain Finance in the fourth quarter valued at approximately $5,398,000. Truffle Hound Capital LLC acquired a new stake in shares of New Mountain Finance in the fourth quarter valued at approximately $5,066,000. Finally, JPMorgan Chase & Co. lifted its position in New Mountain Finance by 27.8% during the fourth quarter. JPMorgan Chase & Co. now owns 2,038,662 shares of the company’s stock worth $18,776,000 after buying an additional 443,016 shares in the last quarter. Hedge funds and other institutional investors own 32.08% of the company’s stock.

New Mountain Finance Stock Performance

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

New Mountain Finance Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a $0.32 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $1.28 dividend on an annualized basis and a yield of 16.7%. New Mountain Finance’s payout ratio is presently 853.33%.

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.