New Mountain Finance (NASDAQ:NMFC) Sets New 12-Month Low – Here’s Why

Shares of New Mountain Finance Corporation (NASDAQ:NMFC) hit a new 52-week low on Monday. The stock traded as low as $6.60 and last traded at $6.5930, with a volume of 71,452 shares. The stock had previously closed at $6.74.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Weiss Ratings downgraded New Mountain Finance from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, October 8th. Keefe, Bruyette & Woods lowered their price target on New Mountain Finance from $9.00 to $8.00 and set a “market perform” rating for the company in a research note on Monday, July 20th. Finally, Wells Fargo & Company dropped their price objective on New Mountain Finance from $8.00 to $7.50 and set an “equal weight” rating on the stock in a report on Wednesday, August 5th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $7.67.

New Mountain Finance Price Performance

The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 1.30. The stock has a market capitalization of $621.95 million, a price-to-earnings ratio of -13.99 and a beta of 0.60. The company’s 50-day simple moving average is $7.23 and its 200 day simple moving average is $7.52.

New Mountain Finance (NASDAQ:NMFC) last posted its earnings results on Monday, August 3rd. The company reported $0.26 earnings per share for the quarter, meeting the consensus estimate of $0.26. New Mountain Finance had a positive return on equity of 10.94% and a negative net margin of 16.78%. The company had revenue of $39.02 million for the quarter, compared to analyst estimates of $62.78 million. During the same period last year, the company earned $0.32 earnings per share. Equities research analysts forecast that New Mountain Finance Corporation will post 1.10 EPS for the current year.

New Mountain Finance Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 15.2%. New Mountain Finance’s dividend payout ratio is currently -212.77%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in NMFC. Integrated Wealth Concepts LLC acquired a new stake in New Mountain Finance in the 2nd quarter worth approximately $27,000. State of Wyoming acquired a new position in New Mountain Finance during the first quarter valued at approximately $71,000. Catalyst Capital Advisors LLC acquired a new position in New Mountain Finance during the first quarter valued at approximately $93,000. SG Americas Securities LLC acquired a new position in New Mountain Finance during the first quarter valued at approximately $122,000. Finally, Squarepoint Ops LLC bought a new position in shares of New Mountain Finance in the second quarter valued at approximately $133,000. 32.08% of the stock is owned by institutional investors.

About New Mountain Finance

New Mountain Finance Corporation is a business development company (BDC) that provides financing to established middle-market companies. The company primarily invests in privately held businesses through senior secured loans, unitranche loans, subordinated debt and other debt securities, and may also make equity investments.

New Mountain Finance generally focuses on companies with strong market positions, recurring revenue and experienced management teams. Its investments span a range of industries and are intended to support acquisitions, recapitalizations, growth initiatives and other corporate purposes.