Key Points
- Director Steven Klinsky purchased 237,873 shares at $8.10 on March 5 for $1.93M, boosting his holdings to 5,037,524 shares (a 4.96% increase), signaling notable insider accumulation.
- The firm declared a quarterly dividend of $0.32 (annualized $1.28), implying a 16.0% yield, but the reported dividend payout ratio of ~853% raises serious questions about sustainability.
- Wall Street sentiment is cautious—several analysts have cut targets and the consensus rating is "Reduce"—which, combined with recent price weakness (stock opened at $7.98, down 1.5%), creates near‑term headwinds for NMFC.
New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) Director Steven Klinsky purchased 237,873 shares of the business's stock in a transaction dated Thursday, March 5th. The shares were purchased at an average price of $8.10 per share, for a total transaction of $1,926,771.30. Following the purchase, the director owned 5,037,524 shares of the company's stock, valued at approximately $40,803,944.40. This trade represents a 4.96% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink.
New Mountain Finance Stock Down 1.5%
Shares of New Mountain Finance stock opened at $7.98 on Friday. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.16 and a quick ratio of 3.16. The stock has a market cap of $823.22 million, a price-to-earnings ratio of 53.20 and a beta of 0.59. The firm's 50-day moving average is $8.62 and its two-hundred day moving average is $9.32. New Mountain Finance Corporation has a 1 year low of $7.52 and a 1 year high of $11.46.
New Mountain Finance Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be paid 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 16.0%. New Mountain Finance's dividend payout ratio (DPR) is currently 853.33%.
New Mountain Finance News Roundup
Here are the key news stories impacting New Mountain Finance this week:
- Positive Sentiment: Director Steven B. Klinsky completed multiple purchases in early March — roughly 675,000 shares bought across March 3–5, representing a multi‑million dollar accumulation. Large insider buys signal management confidence in the company’s outlook and can support the stock. InsiderTrades: Klinsky Acquires Shares
- Neutral Sentiment: The company declared a quarterly dividend of $0.32 (payable March 31; ex-dividend March 17), which provides a very high yield that may appeal to income investors but also requires scrutiny of sustainability. Detailed dividend and company profile available here. MarketBeat: NMFC Dividend & Profile
- Negative Sentiment: Analysts have been cutting targets and taking a more cautious stance: B. Riley lowered its target and other firms have trimmed price objectives, leaving a consensus "Reduce"/Hold tilt and a consensus target below recent highs. Analyst pessimism is a near-term headwind. MarketBeat: Analyst Notes on NMFC
- Negative Sentiment: Dividend sustainability is a major concern: the reported annualized dividend implies an extremely high payout ratio (reported ~853%), which investors often view as unsustainable for a BDC and can pressure the share price if cash flows or NAV come under stress. MarketBeat: Dividend & Payout Ratio
- Negative Sentiment: Independent research and bearish commentary (including a pessimistic forecast cited by B. Riley) add selling pressure and may explain the weaker intraday performance. AmericanBankingNews: B. Riley Forecast
Institutional Investors Weigh In On New Mountain Finance
A number of large investors have recently made changes to their positions in the stock. LSV Asset Management raised its stake in New Mountain Finance by 13.4% in the 4th quarter. LSV Asset Management now owns 2,986,718 shares of the company's stock worth $27,508,000 after acquiring an additional 353,062 shares during the last quarter. Van ECK Associates Corp increased its holdings in shares of New Mountain Finance by 4.6% in the third quarter. Van ECK Associates Corp now owns 2,589,798 shares of the company's stock valued at $24,966,000 after purchasing an additional 115,004 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of New Mountain Finance by 27.8% in the fourth quarter. JPMorgan Chase & Co. now owns 2,038,662 shares of the company's stock valued at $18,776,000 after purchasing an additional 443,016 shares during the period. UBS Group AG raised its stake in shares of New Mountain Finance by 33.4% in the fourth quarter. UBS Group AG now owns 1,541,128 shares of the company's stock worth $14,194,000 after purchasing an additional 385,891 shares during the last quarter. Finally, Rivernorth Capital Management LLC acquired a new stake in shares of New Mountain Finance during the fourth quarter worth about $12,326,000. 32.08% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of research firms have weighed in on NMFC. Keefe, Bruyette & Woods lowered their target price on New Mountain Finance from $10.00 to $9.00 and set a "market perform" rating for the company in a report on Wednesday. Wells Fargo & Company reduced their price target 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. Zacks Research cut New Mountain Finance from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 26th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. Finally, B. Riley Financial cut their target price on New Mountain Finance from $10.00 to $7.50 and set a "neutral" rating on the stock in a research note on Tuesday. Five research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $9.25.
View Our Latest Analysis on NMFC
New Mountain Finance Company Profile
(
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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