New Mountain Finance (NASDAQ:NMFC) Reaches New 1-Year Low – Here’s What Happened

New Mountain Finance Corporation (NASDAQ:NMFC)’s share price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $7.52 and last traded at $7.79, with a volume of 2129228 shares traded. The stock had previously closed at $7.65.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on NMFC. Weiss Ratings reissued a “hold (c-)” rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods decreased their price objective on New Mountain Finance from $11.00 to $10.00 and set a “market perform” rating for the company in a report on Wednesday, November 5th. Wells Fargo & Company dropped 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 note on Thursday, February 26th. B. Riley Financial reaffirmed a “neutral” rating and set a $10.00 target price (down from $11.00) on shares of New Mountain Finance in a research report on Wednesday, November 5th. Finally, Zacks Research downgraded New Mountain Finance from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $9.83.

New Mountain Finance Stock Up 1.8%

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’s 50-day simple moving average is $8.70 and its 200-day simple moving average is $9.37. The company has a market capitalization of $803.62 million, a PE ratio of 51.93 and a beta of 0.59.

New Mountain Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 16.4%. The ex-dividend date is Tuesday, March 17th. New Mountain Finance’s dividend payout ratio is currently 853.33%.

Insider Activity at New Mountain Finance

In other news, COO Laura C. Holson Boswerger bought 12,500 shares of the business’s stock in a transaction dated Friday, February 27th. The stock was purchased at an average cost of $7.74 per share, with a total value of $96,750.00. Following the acquisition, the chief operating officer directly owned 81,030 shares in the company, valued at $627,172.20. This trade represents a 18.24% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 11.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MTM Investment Management LLC acquired a new position in shares of New Mountain Finance in the second quarter worth about $38,000. State of Alaska Department of Revenue purchased a new position in shares of New Mountain Finance in the 3rd quarter valued at about $47,000. Huntington National Bank raised its holdings in New Mountain Finance by 311.8% in the 2nd quarter. Huntington National Bank now owns 4,534 shares of the company’s stock worth $48,000 after purchasing an additional 3,433 shares during the period. US Bancorp DE purchased a new position in New Mountain Finance during the third quarter worth approximately $48,000. Finally, Advisory Services Network LLC acquired a new stake in New Mountain Finance in the third quarter valued at approximately $65,000. Hedge funds and other institutional investors own 32.08% of the company’s stock.

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.