Royal Bank Of Canada Forecasts Strong Price Appreciation for MidCap Financial Investment (NASDAQ:MFIC) Stock

Key Points

• RBC raised its MFIC price target from $10 to $11 but maintained a “sector perform” rating, implying about 7% upside from the prior close.
• Analyst sentiment remains cautious: the consensus rating is “Reduce” with an average target of $10.25; seven analysts rate the stock Hold and one rates it Sell.
• MFIC’s latest quarter fell short of expectations, reporting a loss of $0.20 per share versus forecast earnings of $0.36, while revenue was $61.98 million against a $64.43 million estimate.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) had its price target hoisted by analysts at Royal Bank Of Canada from $10.00 to $11.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price points to a potential upside of 7.06% from the company's previous close.

A number of other brokerages have also recently weighed in on MFIC. Truist Financial cut MidCap Financial Investment from a "buy" rating to a "hold" rating and decreased their price objective for the company from $12.00 to $11.00 in a report on Monday, November 2nd. Raymond James Financial cut shares of MidCap Financial Investment from an "outperform" rating to a "market perform" rating in a research report on Wednesday, October 28th. Wells Fargo & Company dropped their target price on shares of MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating for the company in a research report on Monday, August 10th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of MidCap Financial Investment in a research report on Wednesday, November 4th. Seven analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $10.25.

MidCap Financial Investment Stock Performance

MFIC stock traded up $0.01 during midday trading on Tuesday, hitting $10.28. The company's stock had a trading volume of 160,687 shares, compared to its average volume of 823,859. MidCap Financial Investment has a 1 year low of $8.11 and a 1 year high of $12.34. The stock's 50-day moving average price is $9.12 and its 200 day moving average price is $10.23. The stock has a market cap of $846.35 million, a price-to-earnings ratio of -12.09 and a beta of 0.59. The company has a quick ratio of 3.78, a current ratio of 3.78 and a debt-to-equity ratio of 1.58.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported ($0.20) EPS for the quarter, missing analysts' consensus estimates of $0.36 by ($0.56). MidCap Financial Investment had a negative net margin of 9.85% and a positive return on equity of 11.17%. The business had revenue of $61.98 million for the quarter, compared to analysts' expectations of $64.43 million. On average, equities analysts forecast that MidCap Financial Investment will post 1.47 EPS for the current year.

Institutional Trading of MidCap Financial Investment

Several institutional investors have recently added to or reduced their stakes in MFIC. Condor Capital Management lifted its holdings in MidCap Financial Investment by 0.9% during the third quarter. Condor Capital Management now owns 435,851 shares of the company's stock valued at $3,809,000 after purchasing an additional 3,969 shares in the last quarter. Russell Investments Group Ltd. grew its stake in shares of MidCap Financial Investment by 2.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,172,112 shares of the company's stock valued at $10,244,000 after buying an additional 30,393 shares during the period. Lido Advisors LLC grew its position in MidCap Financial Investment by 12.4% in the third quarter. Lido Advisors LLC now owns 78,125 shares of the company's stock worth $683,000 after acquiring an additional 8,596 shares during the period. Beverly Hills Private Wealth LLC purchased a new stake in MidCap Financial Investment in the 3rd quarter valued at about $227,000. Finally, Kestra Advisory Services LLC acquired a new position in shares of MidCap Financial Investment in the 3rd quarter worth approximately $158,000. Institutional investors own 28.45% of the company's stock.

About MidCap Financial Investment

MidCap Financial Investment Corporation NASDAQ: MFIC is a closed-end, externally managed business development company that provides financing to middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation by investing in privately negotiated debt and equity securities.

MFIC primarily invests in senior secured loans, including first-lien and second-lien loans, as well as subordinated debt and other investments issued by companies across a range of industries.

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