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

New Mountain Finance (NASDAQ:NMFC) posted its quarterly earnings results on Monday. The company reported $0.32 earnings per share (EPS) for the quarter, hitting 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 for the quarter, compared to the consensus estimate of $67.76 million.

New Mountain Finance Stock Performance

Shares of NASDAQ:NMFC traded down $0.04 during trading on Monday, hitting $8.56. The stock had a trading volume of 634,538 shares, compared to its average volume of 1,116,467. New Mountain Finance has a 12-month low of $7.47 and a 12-month high of $11.04. The stock has a market capitalization of $843.25 million, a price-to-earnings ratio of 57.07 and a beta of 0.57. The company has a quick ratio of 3.16, a current ratio of 3.16 and a debt-to-equity ratio of 1.41. The stock has a 50-day simple moving average of $8.00 and a two-hundred day simple moving average of $8.77.

New Mountain Finance Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 15.0%. The ex-dividend date was Tuesday, March 17th. New Mountain Finance’s dividend payout ratio (DPR) is presently 853.33%.

Insider Transactions at New Mountain Finance

In other news, Director Steven B. Klinsky acquired 276,242 shares of New Mountain Finance stock in a transaction dated 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 purchase, the director directly owned 5,370,858 shares in the company, valued at $43,235,406.90. This trade represents a 5.42% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Adam B. Weinstein acquired 12,900 shares of New Mountain Finance stock in a transaction dated Tuesday, March 17th. The stock was purchased at an average price of $7.61 per share, with a total value of $98,169.00. Following the completion of the purchase, the executive vice president owned 751,756 shares of the company’s stock, valued at approximately $5,720,863.16. The trade was a 1.75% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 1,200,673 shares of company stock worth $9,662,634 over the last three months. 14.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of NMFC. Millennium Management LLC raised its position in New Mountain Finance by 36.9% during the first quarter. Millennium Management LLC now owns 711,050 shares of the company’s stock valued at $7,843,000 after acquiring an additional 191,518 shares in the last quarter. Cetera Investment Advisers raised its position in New Mountain Finance by 45.6% during the second quarter. Cetera Investment Advisers now owns 35,164 shares of the company’s stock valued at $371,000 after acquiring an additional 11,018 shares in the last quarter. XTX Topco Ltd purchased a new position in New Mountain Finance during the second quarter valued at approximately $172,000. Quantbot Technologies LP purchased a new position in New Mountain Finance during the second quarter valued at approximately $199,000. Finally, Marshall Wace LLP purchased a new position in New Mountain Finance during the second quarter valued at approximately $2,303,000. 32.08% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

NMFC has been the topic of a number of recent research reports. Wall Street Zen raised New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. B. Riley Financial dropped their price objective 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. Zacks Research downgraded New Mountain Finance from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Wells Fargo & Company dropped 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. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a research report on Tuesday, April 21st. Five investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, New Mountain Finance currently has an average rating of “Reduce” and a consensus price target of $9.25.

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.