LSV Asset Management Increases Position in New Mountain Finance Corporation $NMFC

Key Points

• LSV Asset Management increased its stake in New Mountain Finance by 13.4% in the fourth quarter, ending with 2,986,718 shares worth about $27.5 million. Several other institutional investors also boosted holdings, and institutions now own 32.08% of the stock.
• New Mountain Finance reported mixed quarterly results, meeting EPS expectations at $0.32 per share but missing revenue estimates with $41.27 million, down 19.7% from a year earlier. Analysts expect the company to earn 1.11 EPS for the full year.
• The company cut its dividend to $0.25 per quarter, implying an annualized yield of 12.6%, while insiders have been actively buying shares. Notably, director Steven B. Klinsky and COO Laura C. Holson Boswerger both increased their ownership in recent months.

LSV Asset Management lifted its holdings in New Mountain Finance Corporation (NASDAQ:NMFC - Free Report) by 13.4% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,986,718 shares of the company's stock after buying an additional 353,062 shares during the period. LSV Asset Management owned approximately 2.90% of New Mountain Finance worth $27,508,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of NMFC. UBS Group AG boosted its stake in shares of New Mountain Finance by 33.4% in the 4th quarter. UBS Group AG now owns 1,541,128 shares of the company's stock worth $14,194,000 after buying an additional 385,891 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in New Mountain Finance by 29.5% in the third quarter. JPMorgan Chase & Co. now owns 1,595,646 shares of the company's stock valued at $15,382,000 after purchasing an additional 363,443 shares during the last quarter. Marshall Wace LLP purchased a new position in New Mountain Finance in the second quarter valued at approximately $2,303,000. Millennium Management LLC lifted its stake in New Mountain Finance by 36.9% in the first quarter. Millennium Management LLC now owns 711,050 shares of the company's stock valued at $7,843,000 after purchasing an additional 191,518 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in New Mountain Finance by 18.5% in the third quarter. Invesco Ltd. now owns 1,219,813 shares of the company's stock valued at $11,759,000 after purchasing an additional 190,152 shares during the last quarter. Hedge funds and other institutional investors own 32.08% of the company's stock.

New Mountain Finance Stock Performance

Shares of NMFC stock opened at $7.94 on Monday. The company's fifty day simple moving average is $8.05 and its two-hundred day simple moving average is $8.63. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.02 and a quick ratio of 2.02. New Mountain Finance Corporation has a 1 year low of $7.47 and a 1 year high of $11.04. The stock has a market capitalization of $749.93 million, a price-to-earnings ratio of -13.69 and a beta of 0.57.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last issued its earnings results on Monday, May 4th. The company reported $0.32 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.32. New Mountain Finance had a negative net margin of 18.65% and a positive return on equity of 11.14%. The business had revenue of $41.27 million for the quarter, compared to analysts' expectations of $67.76 million. During the same quarter in the previous year, the firm posted $0.32 EPS. The business's revenue for the quarter was down 19.7% compared to the same quarter last year. As a group, analysts anticipate that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

New Mountain Finance Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $1.00 dividend on an annualized basis and a yield of 12.6%. New Mountain Finance's payout ratio is presently -220.69%.

Insider Buying and Selling at New Mountain Finance

In other New Mountain Finance news, Director Steven B. Klinsky bought 276,242 shares of the stock in a transaction on Wednesday, March 11th. The shares were acquired at an average price of $8.05 per share, with a total value of $2,223,748.10. Following the acquisition, the director directly owned 5,370,858 shares of the company's stock, valued at $43,235,406.90. The trade was a 5.42% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Laura C. Holson Boswerger bought 12,500 shares of the stock in a transaction on Friday, February 27th. The shares were acquired at an average cost of $7.74 per share, for a total transaction of $96,750.00. Following the acquisition, the chief operating officer directly owned 81,030 shares in the company, valued at approximately $627,172.20. This trade represents a 18.24% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 1,200,673 shares of company stock valued at $9,662,634 in the last 90 days. 14.90% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on NMFC shares. Wells Fargo & Company dropped their price objective on New Mountain Finance from $10.00 to $8.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 26th. Wall Street Zen upgraded New Mountain Finance from a "sell" rating to a "hold" rating in a research note on Sunday, April 5th. Zacks Research upgraded New Mountain Finance from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 6th. Weiss Ratings downgraded New Mountain Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 18th. Finally, Keefe, Bruyette & Woods dropped their price objective on New Mountain Finance from $10.00 to $9.00 and set a "market perform" rating on the stock in a research note on Wednesday, March 4th. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, New Mountain Finance currently has an average rating of "Reduce" and an average price target of $9.25.

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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