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

New Mountain Finance Corporation (NASDAQ:NMFC)’s stock price hit a new 52-week low during trading on Tuesday . The stock traded as low as $7.52 and last traded at $7.79, with a volume of 2129228 shares changing hands. The stock had previously closed at $7.65.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Wells Fargo & Company dropped their target price 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. Weiss Ratings restated a “hold (c-)” rating on shares of New Mountain Finance in a report on Thursday, January 22nd. Zacks Research downgraded New Mountain Finance from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Keefe, Bruyette & Woods decreased their target price on New Mountain Finance from $11.00 to $10.00 and set a “market perform” rating for the company in a research report on Wednesday, November 5th. Finally, B. Riley Financial reissued a “neutral” rating and set a $10.00 target price (down from $11.00) on shares of New Mountain Finance in a research note on Wednesday, November 5th. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, New Mountain Finance currently has a consensus rating of “Reduce” and an average target price of $9.83.

New Mountain Finance Trading Up 1.8%

The firm has a market capitalization of $803.62 million, a P/E ratio of 51.93 and a beta of 0.59. The stock has a 50-day simple moving average of $8.70 and a two-hundred day simple moving average of $9.37. The company has a current ratio of 3.16, a quick ratio of 3.16 and a debt-to-equity ratio of 1.41.

New Mountain Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.32 per share. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $1.28 dividend on an annualized basis and a yield of 16.4%. New Mountain Finance’s dividend payout ratio (DPR) is 853.33%.

Insider Buying and Selling at New Mountain Finance

In other New Mountain Finance news, COO Laura C. Holson Boswerger acquired 12,500 shares of the company’s stock in a transaction dated Friday, February 27th. The shares were purchased at an average cost of $7.74 per share, for a total transaction of $96,750.00. Following the completion of the purchase, the chief operating officer owned 81,030 shares in the company, valued at approximately $627,172.20. This trade represents a 18.24% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 11.71% of the company’s stock.

Institutional Trading of New Mountain Finance

Hedge funds have recently bought and sold shares of the stock. MTM Investment Management LLC purchased a new position in shares of New Mountain Finance in the 2nd quarter valued at $38,000. Huntington National Bank boosted its position in New Mountain Finance by 311.8% during the second quarter. Huntington National Bank now owns 4,534 shares of the company’s stock valued at $48,000 after purchasing an additional 3,433 shares in the last quarter. State of Alaska Department of Revenue purchased a new position in New Mountain Finance in the third quarter valued at about $47,000. US Bancorp DE bought a new position in New Mountain Finance in the third quarter worth about $48,000. Finally, Advisory Services Network LLC bought a new position in New Mountain Finance in the third quarter worth about $65,000. Hedge funds and other institutional investors own 32.08% of the company’s stock.

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.