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

New Mountain Finance Corporation (NASDAQ:NMFC) has been assigned a consensus rating of “Reduce” from the seven analysts that are currently covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $9.25.

NMFC has been the subject of several recent research reports. Zacks Research raised shares of New Mountain Finance from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th. Weiss Ratings downgraded shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 18th. B. Riley Financial decreased their price target 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. 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 research note on Thursday, February 26th. Finally, Wall Street Zen raised shares of New Mountain Finance from a “sell” rating to a “hold” rating in a report on Sunday, April 5th.

New Mountain Finance Stock Performance

NMFC opened at $7.89 on Wednesday. The firm has a market cap of $745.21 million, a PE ratio of -13.60 and a beta of 0.54. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 1.26. The business has a fifty day simple moving average of $8.09 and a 200-day simple moving average of $8.51. New Mountain Finance has a fifty-two week low of $7.47 and a fifty-two week high of $10.98.

New Mountain Finance (NASDAQ:NMFC) last announced its earnings results on Monday, May 4th. The company reported $0.32 EPS for the quarter, hitting the consensus estimate of $0.32. The company had revenue of $41.27 million during the quarter, compared to analysts’ expectations of $67.76 million. New Mountain Finance had a negative net margin of 18.65% and a positive return on equity of 11.14%. The business’s revenue for the quarter was down 19.7% on a year-over-year basis. During the same period last year, the company posted $0.32 earnings per share. As a group, equities analysts predict that New Mountain Finance will post 1.11 EPS 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. Investors of record on Tuesday, June 16th will be paid a dividend of $0.25 per share. The ex-dividend date is Tuesday, June 16th. This represents a $1.00 annualized dividend and a yield of 12.7%. New Mountain Finance’s dividend payout ratio is presently -220.69%.

Insiders Place Their Bets

In other New Mountain Finance news, EVP Adam B. Weinstein bought 12,900 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The stock was purchased at an average price of $7.61 per share, for a total transaction of $98,169.00. Following the purchase, the executive vice president directly owned 751,756 shares in the company, valued at $5,720,863.16. This trade represents a 1.75% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 14.90% of the stock is currently owned by insiders.

Institutional Trading of New Mountain Finance

A number of hedge funds have recently bought and sold shares of the stock. US Bancorp DE bought a new stake in shares of New Mountain Finance in the 3rd quarter worth approximately $48,000. Advisory Services Network LLC bought a new stake in shares of New Mountain Finance in the 3rd quarter worth approximately $65,000. Sound Income Strategies LLC lifted its position in shares of New Mountain Finance by 699.5% in the 4th quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock worth $70,000 after acquiring an additional 6,722 shares during the period. State of Wyoming bought a new position in shares of New Mountain Finance during the 1st quarter worth about $71,000. Finally, United Capital Financial Advisors LLC bought a new position in shares of New Mountain Finance during the 3rd quarter worth about $97,000. 32.08% of the stock is owned by 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.