New Mountain Finance (NASDAQ:NMFC) Reaches New 52-Week Low – Time to Sell?

New Mountain Finance Corporation (NASDAQ:NMFC)’s stock price reached a new 52-week low during trading on Monday . The stock traded as low as $8.43 and last traded at $8.50, with a volume of 264421 shares changing hands. The stock had previously closed at $8.61.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on NMFC. B. Riley reaffirmed a “neutral” rating and issued a $10.00 price objective (down previously from $11.00) on shares of New Mountain Finance in a research report on Wednesday, November 5th. Zacks Research upgraded New Mountain Finance from a “strong sell” rating to a “hold” rating in a report on Monday, November 24th. Weiss Ratings reissued a “hold (c-)” rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods reduced their target price on New Mountain Finance from $11.00 to $10.00 and set a “market perform” rating on the stock in a research report on Wednesday, November 5th. Finally, New Street Research set a $10.00 price target on New Mountain Finance in a report on Friday, October 10th. Six research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, New Mountain Finance currently has an average rating of “Reduce” and a consensus target price of $10.17.

New Mountain Finance Trading Down 0.3%

The firm has a market cap of $885.63 million, a PE ratio of 13.22 and a beta of 0.59. The company has a 50-day simple moving average of $9.27 and a 200 day simple moving average of $9.71. The company has a current ratio of 1.99, a quick ratio of 1.99 and a debt-to-equity ratio of 1.40.

New Mountain Finance (NASDAQ:NMFC) last posted its earnings results on Monday, November 3rd. The company reported $0.32 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.32. New Mountain Finance had a net margin of 20.84% and a return on equity of 10.42%. The firm had revenue of $80.53 million during the quarter, compared to analysts’ expectations of $83.91 million. During the same period in the previous year, the business posted $0.34 EPS. The business’s revenue was down 15.5% compared to the same quarter last year. As a group, sell-side analysts forecast that New Mountain Finance Corporation will post 1.39 earnings per share for the current fiscal year.

Hedge Funds Weigh In On New Mountain Finance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Millennium Management LLC lifted its stake in New Mountain Finance by 36.9% in the 1st quarter. Millennium Management LLC now owns 711,050 shares of the company’s stock valued at $7,843,000 after buying an additional 191,518 shares in the last quarter. Truist Financial Corp purchased a new position in shares of New Mountain Finance in the second quarter valued at approximately $167,000. Inspire Investing LLC lifted its position in shares of New Mountain Finance by 17.7% in the second quarter. Inspire Investing LLC now owns 36,844 shares of the company’s stock valued at $389,000 after acquiring an additional 5,548 shares in the last quarter. Tranquility Partners LLC increased its position in shares of New Mountain Finance by 92.6% during the second quarter. Tranquility Partners LLC now owns 232,087 shares of the company’s stock worth $2,449,000 after purchasing an additional 111,615 shares in the last quarter. Finally, Naviter Wealth LLC raised its stake in New Mountain Finance by 4.1% in the 2nd quarter. Naviter Wealth LLC now owns 205,757 shares of the company’s stock valued at $2,171,000 after purchasing an additional 8,080 shares during the last quarter. 32.08% of the stock is owned by hedge funds and other institutional investors.

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.