MidCap Financial Investment Corporation (NASDAQ:MFIC) Declares Quarterly Dividend of $0.31

Key Points

• MFIC declared a quarterly dividend of $0.31 per share, payable December 22 to shareholders of record December 8. The annualized dividend is $1.24, representing a 12.1% yield.
• The dividend may be at risk: analysts expect next-year EPS of $1.23, slightly below the $1.24 annual dividend, implying a projected payout ratio of 100.8%.
• MFIC reported a quarterly loss of $0.20 per share, missing the $0.36 consensus estimate, and revenue also came in below expectations. Analysts’ consensus rating is “Reduce,” with a $10.39 target price.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) declared a quarterly dividend on Wednesday, November 4th. Investors of record on Tuesday, December 8th will be paid a dividend of $0.31 per share on Tuesday, December 22nd. This represents a $1.24 dividend on an annualized basis and a yield of 12.1%. The ex-dividend date is Tuesday, December 8th.

MidCap Financial Investment has a dividend payout ratio of 82.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect MidCap Financial Investment to earn $1.23 per share next year, which means the company may not be able to cover its $1.24 annual dividend with an expected future payout ratio of 100.8%.

MidCap Financial Investment Stock Performance

NASDAQ MFIC opened at $10.27 on Friday. The stock has a market capitalization of $845.97 million, a PE ratio of -28.53 and a beta of 0.59. The business has a 50 day simple moving average of $9.10 and a two-hundred day simple moving average of $10.24. The company has a debt-to-equity ratio of 1.58, a current ratio of 3.78 and a quick ratio of 3.78. 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 released its quarterly earnings data on Wednesday, November 4th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.56). The firm had revenue of $61.98 million during the quarter, compared to the consensus estimate of $64.43 million. MidCap Financial Investment had a positive return on equity of 11.17% and a negative net margin of 9.85%. On average, research analysts predict that MidCap Financial Investment will post 1.49 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on MFIC shares. Wells Fargo & Company decreased their price objective on MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating on the stock in a research report on Monday, August 10th. Weiss Ratings lowered shares of MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. Royal Bank Of Canada lowered their price objective on shares of MidCap Financial Investment from $11.00 to $10.00 and set a "sector perform" rating for the company in a research report on Wednesday, August 12th. Raymond James Financial downgraded shares of MidCap Financial Investment from an "outperform" rating to a "market perform" rating in a research note on Wednesday, October 28th. Finally, Truist Financial downgraded shares of MidCap Financial Investment from a "buy" rating to a "hold" rating and decreased their price target for the company from $12.00 to $11.00 in a research note on Monday. Eight analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $10.39.

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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