Zacks Investment Research Lowers New Mountain Finance (NMFC) to Hold

Zacks Investment Research cut shares of New Mountain Finance (NYSE:NMFC) from a buy rating to a hold rating in a report released on Wednesday.

According to Zacks, “New Mountain Finance Corporation is a Business Development Company specializing in investments in middle market companies and debt securities at various levels of the capital structure, including first and second lien debt, unsecured notes, bonds, and mezzanine securities. It invests in various industries that include software, education, business services, distribution and logistics, federal services, healthcare services and products, healthcare facilities, energy, media, consumer and industrial services, healthcare Information Technology, Information Technology and services, specialty chemicals and materials, telecommunication, retail, and power generation. It seeks to invest in United States. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. “

Several other equities research analysts have also weighed in on the stock. Wells Fargo & Co dropped their price objective on shares of New Mountain Finance from $15.00 to $14.00 and set an outperform rating on the stock in a research note on Thursday, October 4th. ValuEngine lowered shares of New Mountain Finance from a hold rating to a sell rating in a research note on Monday, September 24th. Finally, TheStreet upgraded shares of New Mountain Finance from a c+ rating to a b rating in a research note on Friday, August 10th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $15.00.

NMFC opened at $13.18 on Wednesday. The stock has a market cap of $1.03 billion, a P/E ratio of 10.22 and a beta of 0.55. New Mountain Finance has a fifty-two week low of $12.05 and a fifty-two week high of $14.50. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 1.04.

New Mountain Finance (NYSE:NMFC) last released its quarterly earnings data on Tuesday, August 7th. The investment management company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.35 by ($0.01). The business had revenue of $54.60 million for the quarter, compared to analyst estimates of $53.10 million. New Mountain Finance had a return on equity of 10.11% and a net margin of 46.52%. Sell-side analysts predict that New Mountain Finance will post 1.37 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, September 28th. Shareholders of record on Friday, September 14th were paid a $0.34 dividend. The ex-dividend date of this dividend was Thursday, September 13th. This represents a $1.36 annualized dividend and a dividend yield of 10.32%. New Mountain Finance’s payout ratio is currently 105.43%.

In other news, insider James Stone purchased 4,000 shares of the company’s stock in a transaction on Thursday, September 6th. The shares were bought at an average price of $13.73 per share, for a total transaction of $54,920.00. Following the completion of the purchase, the insider now owns 93,351 shares of the company’s stock, valued at $1,281,709.23. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Adam Weinstein purchased 12,000 shares of the company’s stock in a transaction on Thursday, September 6th. The stock was purchased at an average price of $13.74 per share, for a total transaction of $164,880.00. Following the purchase, the chief accounting officer now directly owns 92,113 shares of the company’s stock, valued at approximately $1,265,632.62. The disclosure for this purchase can be found here. Insiders acquired 48,250 shares of company stock worth $662,833 in the last 90 days. 10.27% of the stock is owned by company insiders.

Several large investors have recently made changes to their positions in the business. Castle Rock Wealth Management LLC bought a new position in shares of New Mountain Finance in the second quarter valued at approximately $139,000. Comerica Bank bought a new position in shares of New Mountain Finance in the second quarter valued at approximately $144,000. Arete Wealth Advisors LLC bought a new position in shares of New Mountain Finance in the first quarter valued at approximately $138,000. Tocqueville Asset Management L.P. bought a new position in shares of New Mountain Finance in the second quarter valued at approximately $162,000. Finally, Great West Life Assurance Co. Can bought a new position in shares of New Mountain Finance in the first quarter valued at approximately $241,000. Institutional investors own 36.99% of the company’s stock.

New Mountain Finance Company Profile

New Mountain Finance Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities.

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