Key Points
- COO Laura Holson Boswerger purchased 12,500 shares of New Mountain Finance on Feb. 27 at $7.74 each, boosting her stake 18.24% to 81,030 shares valued at roughly $627,172.
- The firm declared a quarterly dividend of $0.32 (annualized $1.28) for a stated yield of about 16.4%, but the payout ratio is extremely high at 853.33%, raising questions about sustainability.
- Analysts have trimmed targets and ratings—MarketBeat shows a consensus rating of "Reduce" with a $9.83 price target—and the stock trades near its 12‑month low (~$7.79) below both the 50‑ and 200‑day moving averages.
New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) COO Laura Holson Boswerger acquired 12,500 shares of the firm's stock in a transaction 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 in the company, valued at approximately $627,172.20. The trade was a 18.24% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website.
New Mountain Finance Price Performance
Shares of NASDAQ NMFC opened at $7.79 on Tuesday. The company has a market capitalization of $803.62 million, a PE ratio of 51.93 and a beta of 0.59. The company has a quick ratio of 3.16, a current ratio of 3.16 and a debt-to-equity ratio of 1.41. The stock's 50 day moving average price is $8.70 and its 200-day moving average price is $9.37. New Mountain Finance Corporation has a twelve month low of $7.52 and a twelve month high of $11.81.
New Mountain Finance Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a $0.32 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $1.28 annualized dividend and a yield of 16.4%. New Mountain Finance's payout ratio is currently 853.33%.
Institutional Investors Weigh In On New Mountain Finance
Several institutional investors have recently added to or reduced their stakes in NMFC. Virtu Financial LLC boosted its position in New Mountain Finance by 66.9% during the fourth quarter. Virtu Financial LLC now owns 21,914 shares of the company's stock worth $202,000 after purchasing an additional 8,785 shares during the period. Corient Private Wealth LLC bought a new stake in shares of New Mountain Finance in the fourth quarter valued at approximately $7,450,000. Mercer Global Advisors Inc. ADV purchased a new stake in shares of New Mountain Finance during the 4th quarter valued at approximately $146,000. XTX Topco Ltd bought a new position in New Mountain Finance in the 4th quarter worth approximately $1,728,000. Finally, VARCOV Co. bought a new position in New Mountain Finance in the 4th quarter worth approximately $853,000. 32.08% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of equities research analysts have recently commented on NMFC shares. Weiss Ratings reiterated a "hold (c-)" rating on shares of New Mountain Finance in a research note on Thursday, January 22nd. Wells Fargo & Company lowered their price objective on shares of New Mountain Finance from $10.00 to $8.00 and set an "equal weight" rating on the stock in a research report on Thursday, February 26th. B. Riley Financial reiterated a "neutral" rating and issued a $10.00 target price (down from $11.00) on shares of New Mountain Finance in a research note on Wednesday, November 5th. Zacks Research downgraded shares of New Mountain Finance from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 26th. Finally, Keefe, Bruyette & Woods decreased their price target on shares of New Mountain Finance from $11.00 to $10.00 and set a "market perform" rating for the company in a research note on Wednesday, November 5th. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $9.83.
View Our Latest Research Report on New Mountain Finance
About New Mountain Finance
(
Get Free Report)
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.
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