Arlington Capital Management Inc. Takes $947,000 Position in New Mountain Finance Corporation $NMFC

Key Points

• Arlington Capital Management Inc. purchased 89,799 shares of New Mountain Finance Corporation, which is valued at approximately $947,000, making it the firm's 29th largest holding.
• New Mountain Finance announced a quarterly dividend of $0.32, resulting in an annualized dividend yield of 13.2%, despite a high payout ratio of 168.42%.
• Analysts have mixed ratings on New Mountain Finance, with a consensus target price of $10.60 and some firms downgrading their outlook for the stock.

Arlington Capital Management Inc. bought a new position in New Mountain Finance Corporation (NASDAQ:NMFC - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 89,799 shares of the company's stock, valued at approximately $947,000. New Mountain Finance accounts for 0.8% of Arlington Capital Management Inc.'s investment portfolio, making the stock its 29th largest holding. Arlington Capital Management Inc. owned approximately 0.08% of New Mountain Finance as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Oppenheimer & Co. Inc. boosted its position in shares of New Mountain Finance by 7.9% during the first quarter. Oppenheimer & Co. Inc. now owns 33,624 shares of the company's stock worth $371,000 after buying an additional 2,450 shares during the period. ProShare Advisors LLC boosted its holdings in New Mountain Finance by 17.2% during the fourth quarter. ProShare Advisors LLC now owns 18,161 shares of the company's stock worth $204,000 after purchasing an additional 2,664 shares during the last quarter. Squarepoint Ops LLC boosted its holdings in New Mountain Finance by 179.7% during the fourth quarter. Squarepoint Ops LLC now owns 40,292 shares of the company's stock worth $454,000 after purchasing an additional 25,886 shares during the last quarter. Invesco Ltd. boosted its holdings in New Mountain Finance by 10.7% during the first quarter. Invesco Ltd. now owns 1,091,476 shares of the company's stock worth $12,039,000 after purchasing an additional 105,559 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in New Mountain Finance by 30.4% during the first quarter. Farther Finance Advisors LLC now owns 46,785 shares of the company's stock worth $519,000 after purchasing an additional 10,900 shares during the last quarter. 32.08% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts recently commented on NMFC shares. Oppenheimer set a $11.00 price target on New Mountain Finance and gave the company a "market perform" rating in a research report on Wednesday, August 6th. Bank of America reissued an "underperform" rating and issued a $10.00 price objective (down previously from $11.75) on shares of New Mountain Finance in a report on Monday, September 15th. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $10.60.

New Mountain Finance Stock Performance

Shares of NMFC stock opened at $9.68 on Thursday. The company has a market capitalization of $1.03 billion, a price-to-earnings ratio of 12.74 and a beta of 0.80. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.42 and a current ratio of 1.42. The company has a 50-day simple moving average of $10.36 and a 200 day simple moving average of $10.43. New Mountain Finance Corporation has a 52 week low of $8.84 and a 52 week high of $12.09.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The company reported $0.32 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.32. The company had revenue of $83.49 million during the quarter, compared to analysts' expectations of $84.57 million. New Mountain Finance had a return on equity of 10.43% and a net margin of 23.27%.During the same quarter in the previous year, the company posted $0.36 earnings per share. On average, sell-side analysts predict that New Mountain Finance Corporation will post 1.39 earnings per share for the current year.

New Mountain Finance Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th will be given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 13.2%. The ex-dividend date of this dividend is Tuesday, September 16th. New Mountain Finance's payout ratio is presently 168.42%.

Insider Transactions at New Mountain Finance

In other New Mountain Finance news, Director Steven B. Klinsky bought 106,691 shares of New Mountain Finance stock in a transaction dated Tuesday, September 16th. The stock was bought at an average price of $9.78 per share, with a total value of $1,043,437.98. Following the completion of the transaction, the director owned 4,370,857 shares in the company, valued at $42,746,981.46. The trade was a 2.50% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Adam B. Weinstein acquired 49,750 shares of the business's stock in a transaction on Monday, September 15th. The stock was acquired at an average cost of $10.03 per share, with a total value of $498,992.50. Following the acquisition, the executive vice president directly owned 652,490 shares in the company, valued at approximately $6,544,474.70. This trade represents a 8.25% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders bought 157,191 shares of company stock valued at $1,550,035. 11.71% of the stock is currently owned by company insiders.

About New Mountain Finance

New Mountain Finance Corporation Nasdaq: NMFC, a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes, and mezzanine securities.

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