MidCap Financial Investment (NASDAQ:MFIC) Shares Gap Down Following Analyst Downgrade

MidCap Financial Investment Corporation (NASDAQ:MFIC)’s share price gapped down before the market opened on Tuesday after Keefe, Bruyette & Woods lowered their price target on the stock from $13.00 to $11.50. The stock had previously closed at $10.31, but opened at $9.90. Keefe, Bruyette & Woods currently has a market perform rating on the stock. MidCap Financial Investment shares last traded at $10.1750, with a volume of 373,493 shares.

Other research analysts have also issued reports about the company. Wall Street Zen raised MidCap Financial Investment from a “sell” rating to a “hold” rating in a research report on Saturday, December 6th. Weiss Ratings restated a “hold (c)” rating on shares of MidCap Financial Investment in a report on Thursday, January 22nd. Royal Bank Of Canada dropped their target price on shares of MidCap Financial Investment from $13.00 to $11.00 and set a “sector perform” rating for the company in a research report on Thursday, March 5th. Zacks Research upgraded shares of MidCap Financial Investment from a “strong sell” rating to a “hold” rating in a report on Thursday, December 11th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of MidCap Financial Investment from $12.00 to $11.50 and set a “neutral” rating for the company in a research note on Monday, November 10th. Two investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $11.75.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Thornburg Investment Management Inc. boosted its position in MidCap Financial Investment by 6.8% during the 3rd quarter. Thornburg Investment Management Inc. now owns 3,137,783 shares of the company’s stock worth $37,622,000 after acquiring an additional 200,000 shares during the period. Muzinich & Co. Inc. increased its holdings in shares of MidCap Financial Investment by 42.4% in the 3rd quarter. Muzinich & Co. Inc. now owns 571,520 shares of the company’s stock valued at $6,853,000 after purchasing an additional 170,127 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of MidCap Financial Investment by 50.3% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 503,351 shares of the company’s stock valued at $6,035,000 after purchasing an additional 168,357 shares during the period. Next Capital Management LLC lifted its position in shares of MidCap Financial Investment by 84.9% in the third quarter. Next Capital Management LLC now owns 1,341,585 shares of the company’s stock worth $16,086,000 after purchasing an additional 616,184 shares in the last quarter. Finally, CW Advisors LLC boosted its holdings in shares of MidCap Financial Investment by 158.2% during the second quarter. CW Advisors LLC now owns 76,278 shares of the company’s stock worth $963,000 after purchasing an additional 46,739 shares during the period. 28.45% of the stock is owned by institutional investors and hedge funds.

MidCap Financial Investment Stock Performance

The firm’s fifty day moving average is $11.15 and its 200 day moving average is $11.76. The firm has a market capitalization of $945.61 million, a price-to-earnings ratio of 15.50 and a beta of 0.78. The company has a debt-to-equity ratio of 1.53, a current ratio of 6.65 and a quick ratio of 6.65.

MidCap Financial Investment (NASDAQ:MFIC) last posted its earnings results on Thursday, February 26th. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02. The firm had revenue of ($1.38) million during the quarter, compared to analysts’ expectations of $78.87 million. MidCap Financial Investment had a net margin of 19.69% and a return on equity of 10.43%. On average, analysts predict that MidCap Financial Investment Corporation will post 1.73 EPS for the current fiscal year.

MidCap Financial Investment Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Tuesday, March 10th will be issued a $0.31 dividend. The ex-dividend date of this dividend is Tuesday, March 10th. This represents a $1.24 dividend on an annualized basis and a yield of 12.1%. MidCap Financial Investment’s dividend payout ratio (DPR) is 230.30%.

MidCap Financial Investment Company Profile

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a business development company that provides financing solutions to middle-market companies across the United States. The firm specializes in direct lending and asset-based financing, offering a range of debt instruments designed to support working capital needs, equipment acquisitions, lease financing and corporate recapitalizations. Its focus on senior secured loans, unitranche structures and equipment financings positions it to serve clients in sectors such as manufacturing, healthcare, transportation and energy.

Through its lending platform, MidCap Financial Investment Corporation partners with privately held and sponsor-backed companies that typically generate annual revenues between $25 million and $500 million.