JPMorgan Chase & Co. Acquires 363,443 Shares of New Mountain Finance Corporation $NMFC

Key Points

• JPMorgan Chase & Co. increased its stake in New Mountain Finance (NASDAQ:NMFC) by 29.5% in Q3, buying 363,443 shares to hold 1,595,646 shares (about a 1.55% stake) worth roughly $15.38 million.
• Analysts have cut targets and ratings on NMFC, leaving a consensus rating of "Reduce" and an average price target of $9.25 after multiple downgrades.
• The company declared a quarterly dividend of $0.32 (annualized $1.28) for a yield of 16.7%, but the reported payout ratio is an unsustainably high 853.33%, raising sustainability concerns.

JPMorgan Chase & Co. boosted its holdings in shares of New Mountain Finance Corporation (NASDAQ:NMFC - Free Report) by 29.5% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,595,646 shares of the company's stock after purchasing an additional 363,443 shares during the period. JPMorgan Chase & Co. owned 1.55% of New Mountain Finance worth $15,382,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of NMFC. State of Alaska Department of Revenue bought a new stake in shares of New Mountain Finance during the third quarter worth $47,000. US Bancorp DE bought a new position in shares of New Mountain Finance in the third quarter valued at about $48,000. Advisory Services Network LLC bought a new position in shares of New Mountain Finance in the third quarter valued at about $65,000. United Capital Financial Advisors LLC acquired a new position in New Mountain Finance during the 3rd quarter worth about $97,000. Finally, Glenview Trust co acquired a new position in New Mountain Finance during the 2nd quarter worth about $107,000. Institutional investors own 32.08% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. B. Riley Financial lowered their price objective on shares of New Mountain Finance from $10.00 to $7.50 and set a "neutral" rating for the company in a research report on Tuesday, March 3rd. Wells Fargo & Company reduced their target price on shares of New Mountain Finance from $10.00 to $8.00 and set an "equal weight" rating on the stock in a research report on Thursday, February 26th. Zacks Research cut shares of New Mountain Finance from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 26th. Keefe, Bruyette & Woods lowered their price target on shares of New Mountain Finance from $10.00 to $9.00 and set a "market perform" rating for the company in a report on Wednesday, March 4th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. Five research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $9.25.

Insider Buying and Selling at New Mountain Finance

In other New Mountain Finance news, COO Laura C. Holson Boswerger bought 12,500 shares of the company's stock in a transaction on Friday, February 27th. The stock was bought at an average price of $7.74 per share, for a total transaction of $96,750.00. Following the transaction, the chief operating officer owned 81,030 shares of the company's stock, valued at approximately $627,172.20. The trade was a 18.24% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Adam B. Weinstein purchased 12,900 shares of New Mountain Finance stock in a transaction dated Tuesday, March 17th. The stock was bought at an average price of $7.61 per share, for a total transaction of $98,169.00. Following the completion of the transaction, the executive vice president directly owned 751,756 shares in the company, valued at $5,720,863.16. The trade was a 1.75% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 1,200,673 shares of company stock worth $9,662,634. Insiders own 11.71% of the company's stock.

New Mountain Finance Stock Performance

Shares of NASDAQ:NMFC opened at $7.65 on Friday. The company has a current ratio of 3.16, a quick ratio of 3.16 and a debt-to-equity ratio of 1.41. New Mountain Finance Corporation has a 1-year low of $7.51 and a 1-year high of $11.20. The stock has a market capitalization of $789.14 million, a P/E ratio of 51.00 and a beta of 0.59. The business has a 50-day moving average price of $8.24 and a two-hundred day moving average price of $9.06.

New Mountain Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 16.7%. The ex-dividend date of this dividend is Tuesday, March 17th. New Mountain Finance's payout ratio is currently 853.33%.

New Mountain Finance Profile

New Mountain Finance Corp. is a closed-end, externally managed business development company (BDC) that provides customized debt and equity capital solutions to U.S. middle-market companies. As a BDC organized under the Investment Company Act of 1940, New Mountain Finance invests in sponsor-backed and founder-led businesses that span a range of industry sectors, with a focus on companies demonstrating resilient growth and recurring revenue streams.

The company's investment portfolio typically includes first-lien senior secured loans, second-lien and junior debt instruments, mezzanine financing and equity co-investments.

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