New Mountain Finance (NASDAQ:NMFC) Reaches New 52-Week Low – Here’s Why

New Mountain Finance Corporation (NASDAQ:NMFC) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $7.50 and last traded at $7.6250, with a volume of 4137 shares trading hands. The stock had previously closed at $7.78.

Analyst Upgrades and Downgrades

NMFC has been the topic of several recent analyst reports. Wells Fargo & Company dropped their target price on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating on the stock in a report on Thursday, February 26th. B. Riley Financial decreased their target price 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. Zacks Research lowered New Mountain Finance from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Keefe, Bruyette & Woods cut their price target on shares of New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating for the company in a report on Wednesday, March 4th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a research note on Thursday, January 22nd. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $9.25.

New Mountain Finance Stock Performance

The firm has a fifty day moving average price of $8.46 and a 200 day moving average price of $9.20. The firm has a market capitalization of $786.60 million, a PE ratio of 50.35 and a beta of 0.59. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.16 and a quick ratio of 3.16.

New Mountain Finance Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a dividend of $0.32 per share. The ex-dividend date is Tuesday, March 17th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 16.8%. New Mountain Finance’s payout ratio is currently 853.33%.

Insider Activity at New Mountain Finance

In other news, COO Laura C. Holson Boswerger acquired 12,500 shares of the firm’s stock in a transaction that occurred on Friday, February 27th. The stock was purchased at an average price of $7.74 per share, with a total value of $96,750.00. Following the purchase, the chief operating officer owned 81,030 shares of the company’s stock, valued at approximately $627,172.20. This trade represents a 18.24% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Steven B. Klinsky bought 276,242 shares of New Mountain Finance stock in a transaction dated Wednesday, March 11th. The stock was acquired at an average price of $8.05 per share, with a total value of $2,223,748.10. Following the acquisition, the director directly owned 5,370,858 shares of the company’s stock, valued at approximately $43,235,406.90. This represents a 5.42% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 1,187,773 shares of company stock valued at $9,564,465. 11.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MTM Investment Management LLC acquired a new stake in shares of New Mountain Finance during the 2nd quarter valued at $38,000. State of Alaska Department of Revenue acquired a new stake in shares of New Mountain Finance during the 3rd quarter worth approximately $47,000. US Bancorp DE bought a new stake in shares of New Mountain Finance during the third quarter valued at approximately $48,000. Advisory Services Network LLC acquired a new position in shares of New Mountain Finance in the third quarter valued at $65,000. Finally, Sound Income Strategies LLC boosted its stake in New Mountain Finance by 699.5% during the fourth quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock worth $70,000 after buying an additional 6,722 shares in the last quarter. 32.08% of the stock is owned by hedge funds and other 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.