New Mountain Finance (NASDAQ:NMFC) Sets New 1-Year Low – Should You Sell?

New Mountain Finance Corporation (NASDAQ:NMFC)’s stock price hit a new 52-week low on Tuesday . The company traded as low as $7.05 and last traded at $7.07, with a volume of 826789 shares traded. The stock had previously closed at $7.16.

Analysts Set New Price Targets

NMFC has been the subject of several analyst reports. B. Riley Financial cut their price objective on shares of New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating for the company in a report on Tuesday, March 3rd. Keefe, Bruyette & Woods dropped their target price on New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating on the stock in a research report on Wednesday, March 4th. Wells Fargo & Company cut their price target on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a report on Thursday, February 26th. Zacks Research upgraded New Mountain Finance from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings cut New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 18th. Five research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $9.25.

New Mountain Finance Price Performance

The stock has a market capitalization of $656.43 million, a PE ratio of -11.98 and a beta of 0.54. The business’s 50-day moving average price is $7.99 and its 200 day moving average price is $8.35. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.02 and a current ratio of 2.02.

New Mountain Finance (NASDAQ:NMFC) last issued its quarterly earnings data on Monday, May 4th. The company reported $0.32 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.32. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.The company had revenue of $41.27 million for the quarter, compared to the consensus estimate of $67.76 million. During the same quarter last year, the business posted $0.32 earnings per share. The firm’s revenue was down 19.7% compared to the same quarter last year. Research analysts forecast that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

New Mountain Finance Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.4%. The ex-dividend date is Tuesday, June 16th. New Mountain Finance’s dividend payout ratio (DPR) is -172.41%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. US Bancorp DE bought a new stake in New Mountain Finance during the third quarter valued at approximately $48,000. Advisory Services Network LLC bought a new position in shares of New Mountain Finance in the 3rd quarter worth $65,000. Sound Income Strategies LLC increased its holdings in shares of New Mountain Finance by 699.5% in the 4th quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock worth $70,000 after buying an additional 6,722 shares during the last quarter. State of Wyoming purchased a new stake in shares of New Mountain Finance during the 1st quarter valued at $71,000. Finally, Catalyst Capital Advisors LLC purchased a new stake in shares of New Mountain Finance during the 1st quarter valued at $93,000. 32.08% of the stock is currently owned by institutional investors.

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.