MidCap Financial Investment Corporation (NASDAQ:MFIC) Stock Has Consensus Target Price of $10.39 According to Analysts

Key Points

• Analyst sentiment is cautious: Nine brokerages give MidCap Financial Investment a consensus “Reduce” rating—one sell and eight holds—with an average 12-month price target of $10.39.
• The company reported a quarterly loss of $0.20 per share, missing the $0.36-per-share consensus estimate; revenue of $61.98 million also fell short of expectations.
• MFIC declared a quarterly dividend of $0.31 per share, equivalent to $1.24 annually and a 12.1% indicated yield.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the nine brokerages that are currently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating and eight have issued a hold rating on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $10.39.

Several research firms have recently issued reports on MFIC. Raymond James Financial lowered MidCap Financial Investment from an "outperform" rating to a "market perform" rating in a research report on Wednesday, October 28th. Truist Financial downgraded shares of MidCap Financial Investment from a "buy" rating to a "hold" rating and cut their price target for the company from $12.00 to $11.00 in a research report on Monday, November 2nd. Wells Fargo & Company reduced their price objective on shares of MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating on the stock in a research note on Monday, August 10th. Weiss Ratings cut shares of MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. Finally, Royal Bank Of Canada lowered their target price on shares of MidCap Financial Investment from $11.00 to $10.00 and set a "sector perform" rating for the company in a research note on Wednesday, August 12th.

MidCap Financial Investment Trading Down 0.1%

Shares of MFIC stock traded down $0.01 during trading hours on Friday, reaching $10.26. The company had a trading volume of 755,447 shares, compared to its average volume of 1,357,730. The company has a 50 day moving average of $9.11 and a 200 day moving average of $10.23. The company has a debt-to-equity ratio of 1.58, a current ratio of 3.78 and a quick ratio of 3.78. The firm has a market cap of $845.12 million, a price-to-earnings ratio of -12.07 and a beta of 0.59. MidCap Financial Investment has a 1-year low of $8.11 and a 1-year high of $12.34.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last announced its quarterly earnings data 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 positive return on equity of 11.17% and a negative net margin of 9.85%. The company had revenue of $61.98 million for the quarter, compared to analyst estimates of $64.43 million. On average, equities research analysts anticipate that MidCap Financial Investment will post 1.49 EPS for the current year.

MidCap Financial Investment Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 22nd. Stockholders of record on Tuesday, December 8th will be given a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 12.1%. The ex-dividend date of this dividend is Tuesday, December 8th. MidCap Financial Investment's dividend payout ratio (DPR) is currently -344.44%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MFIC. Wellington Management Group LLP acquired a new position in shares of MidCap Financial Investment during the second quarter worth about $10,869,000. Next Capital Management LLC raised its holdings in MidCap Financial Investment by 26.1% during the first quarter. Next Capital Management LLC now owns 1,871,652 shares of the company's stock worth $21,037,000 after acquiring an additional 387,303 shares in the last quarter. Y Intercept Hong Kong Ltd acquired a new position in MidCap Financial Investment during the second quarter valued at approximately $995,000. Cidel Asset Management Inc. acquired a new position in MidCap Financial Investment during the second quarter valued at approximately $507,000. Finally, Headlands Technologies LLC grew its stake in MidCap Financial Investment by 304.1% in the second quarter. Headlands Technologies LLC now owns 51,819 shares of the company's stock valued at $522,000 after purchasing an additional 38,995 shares in the last quarter. 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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