New Mountain Finance Corporation (NASDAQ:NMFC) Receives Average Rating of “Reduce” from Analysts

Shares of New Mountain Finance Corporation (NASDAQ:NMFC) have been given an average recommendation of “Reduce” by the seven ratings firms that are presently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell rating and five have issued a hold rating on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $9.25.

Several analysts recently issued reports on the stock. Keefe, Bruyette & Woods reduced their price objective on shares of New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating on the stock in a report on Wednesday, March 4th. B. Riley Financial lowered their target price on shares of 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. Wells Fargo & Company reduced their price target on shares of New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 26th. Zacks Research lowered shares of New Mountain Finance from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a research report on Thursday, January 22nd.

Insider Buying and Selling at New Mountain Finance

In other news, COO Laura C. Holson Boswerger bought 12,500 shares of the firm’s stock in a transaction that occurred on Friday, February 27th. The shares were 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Steven B. Klinsky bought 250,495 shares of the firm’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were purchased at an average cost of $7.94 per share, for a total transaction of $1,988,930.30. Following the purchase, the director owned 4,754,338 shares in the company, valued at $37,749,443.72. This represents a 5.56% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have bought 687,773 shares of company stock valued at $5,539,465. Company insiders own 11.71% of the company’s stock.

Hedge Funds Weigh In On New Mountain Finance

Several institutional investors have recently bought and sold shares of the company. Millennium Management LLC lifted its position in shares of New Mountain Finance by 36.9% during the first quarter. Millennium Management LLC now owns 711,050 shares of the company’s stock worth $7,843,000 after purchasing an additional 191,518 shares in the last quarter. Spire Wealth Management grew its holdings in shares of New Mountain Finance by 4.0% in the second quarter. Spire Wealth Management now owns 39,200 shares of the company’s stock valued at $414,000 after purchasing an additional 1,500 shares in the last quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors purchased a new stake in New Mountain Finance during the 2nd quarter worth approximately $126,000. Next Capital Management LLC acquired a new stake in New Mountain Finance during the 2nd quarter worth approximately $276,000. Finally, Huntington National Bank boosted its position in New Mountain Finance by 311.8% in the 2nd quarter. Huntington National Bank now owns 4,534 shares of the company’s stock valued at $48,000 after buying an additional 3,433 shares during the period. 32.08% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting New Mountain Finance

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

New Mountain Finance Stock Down 1.5%

NMFC stock opened at $7.98 on Monday. New Mountain Finance has a one year low of $7.52 and a one year high of $11.46. The firm has a market cap of $823.18 million, a PE ratio of 53.20 and a beta of 0.59. The firm’s 50 day moving average price is $8.62 and its 200-day moving average price is $9.31. The company has a debt-to-equity ratio of 1.41, a quick ratio of 3.16 and a current ratio of 3.16.

New Mountain Finance Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 16.0%. The ex-dividend date is Tuesday, March 17th. New Mountain Finance’s dividend payout ratio is 853.33%.

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.