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

New Mountain Finance Corporation (NASDAQ:NMFC) reached a new 52-week low on Wednesday . The stock traded as low as $7.46 and last traded at $7.5050, with a volume of 57048 shares. The stock had previously closed at $7.78.

Wall Street Analyst Weigh In

NMFC has been the subject of a number of research reports. Weiss Ratings cut shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 18th. Keefe, Bruyette & Woods dropped their target price on New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating for the company in a research report on Wednesday, March 4th. Wall Street Zen upgraded shares of New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. B. Riley Financial decreased their price objective on New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a report on Tuesday, March 3rd. Finally, Wells Fargo & Company lowered their price objective on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a research report on Thursday, February 26th. Five research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $9.25.

New Mountain Finance Trading Down 0.9%

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 firm’s 50 day simple moving average is $8.10 and its two-hundred day simple moving average is $8.45. The stock has a market capitalization of $706.97 million, a P/E ratio of -12.91 and a beta of 0.54.

New Mountain Finance (NASDAQ:NMFC) last posted its quarterly earnings results on Monday, May 4th. The company reported $0.32 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.32. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.The business had revenue of $41.27 million for the quarter, compared to the consensus estimate of $67.76 million. During the same period in the prior year, the business earned $0.32 EPS. The firm’s revenue for the quarter was down 19.7% on a year-over-year basis. As a group, analysts forecast that New Mountain Finance Corporation will post 1.11 earnings per share for the current fiscal year.

New Mountain Finance Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $1.00 annualized dividend and a dividend yield of 13.4%. New Mountain Finance’s payout ratio is presently -172.41%.

Hedge Funds Weigh In On New Mountain Finance

Several institutional investors and hedge funds have recently bought and sold shares of NMFC. LSV Asset Management raised its stake in shares of New Mountain Finance by 13.4% in the fourth quarter. LSV Asset Management now owns 2,986,718 shares of the company’s stock valued at $27,508,000 after buying an additional 353,062 shares during the period. Van ECK Associates Corp increased its holdings in New Mountain Finance by 4.6% in the 3rd quarter. Van ECK Associates Corp now owns 2,589,798 shares of the company’s stock worth $24,966,000 after acquiring an additional 115,004 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in New Mountain Finance by 27.8% in the 4th quarter. JPMorgan Chase & Co. now owns 2,038,662 shares of the company’s stock worth $18,776,000 after acquiring an additional 443,016 shares during the last quarter. UBS Group AG raised its stake in New Mountain Finance by 33.4% in the 4th quarter. UBS Group AG now owns 1,541,128 shares of the company’s stock valued at $14,194,000 after acquiring an additional 385,891 shares during the period. Finally, Rivernorth Capital Management LLC purchased a new stake in New Mountain Finance during the fourth quarter valued at about $12,326,000. 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.