New Mountain Finance (NASDAQ:NMFC) Announces Earnings Results, Hits Estimates

New Mountain Finance (NASDAQ:NMFC) posted its quarterly earnings results on Monday. The company reported $0.32 EPS for the quarter, meeting analysts’ consensus estimates of $0.32, FiscalAI reports. New Mountain Finance had a return on equity of 10.66% and a net margin of 5.04%.The business had revenue of $41.27 million during the quarter, compared to the consensus estimate of $67.76 million.

New Mountain Finance Price Performance

New Mountain Finance stock traded down $0.04 during midday trading on Monday, reaching $8.56. The company’s stock had a trading volume of 637,543 shares, compared to its average volume of 1,116,513. The stock has a market cap of $843.25 million, a PE ratio of 57.07 and a beta of 0.57. 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 business has a 50-day moving average price of $8.00 and a 200-day moving average price of $8.77. New Mountain Finance has a 52 week low of $7.47 and a 52 week high of $11.04.

New Mountain Finance Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 15.0%. The ex-dividend date was Tuesday, March 17th. New Mountain Finance’s payout ratio is currently 853.33%.

Insider Transactions at New Mountain Finance

In other news, COO Laura C. Holson Boswerger purchased 12,500 shares of New Mountain Finance stock in a transaction dated Friday, February 27th. The shares were bought at an average cost of $7.74 per share, for a total transaction of $96,750.00. Following the completion of the acquisition, the chief operating officer owned 81,030 shares in the company, valued at approximately $627,172.20. This trade represents a 18.24% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Steven B. Klinsky purchased 276,242 shares of New Mountain Finance stock in a transaction dated Wednesday, March 11th. The shares were purchased at an average price of $8.05 per share, for a total transaction of $2,223,748.10. Following the completion of the acquisition, the director owned 5,370,858 shares of the company’s stock, valued at approximately $43,235,406.90. The trade was a 5.42% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 1,200,673 shares of company stock worth $9,662,634. Insiders own 14.90% of the company’s stock.

Hedge Funds Weigh In On New Mountain Finance

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Tudor Investment Corp ET AL acquired a new position in shares of New Mountain Finance in the fourth quarter worth approximately $176,000. Aquatic Capital Management LLC acquired a new position in shares of New Mountain Finance in the third quarter worth approximately $171,000. BNP Paribas Financial Markets acquired a new position in shares of New Mountain Finance in the third quarter worth approximately $165,000. ExodusPoint Capital Management LP acquired a new position in shares of New Mountain Finance in the fourth quarter worth approximately $156,000. Finally, Schonfeld Strategic Advisors LLC acquired a new position in shares of New Mountain Finance in the fourth quarter worth approximately $151,000. 32.08% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on NMFC shares. Keefe, Bruyette & Woods lowered their price target on New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating for the company in a report on Wednesday, March 4th. Wells Fargo & Company decreased their target price 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. Weiss Ratings reiterated a “hold (c-)” rating on shares of New Mountain Finance in a research report on Tuesday, April 21st. Wall Street Zen upgraded New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. Finally, B. Riley Financial decreased their target price on New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating on the stock in a research report on Tuesday, March 3rd. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, New Mountain Finance currently has an average rating of “Reduce” and a consensus price target of $9.25.

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.