Tranquility Partners LLC Grows Stock Position in New Mountain Finance Corporation $NMFC

Key Points

• Tranquility Partners LLC increased its holdings in New Mountain Finance Corporation (NASDAQ: NMFC) by 92.6% in the second quarter, acquiring an additional 111,615 shares.
• New Mountain Finance reported a quarterly dividend of $0.32, resulting in an annualized yield of 14.3%, despite a dividend payout ratio of 168.42%.
• The company's stock is currently down 0.8% and analysts have a mixed outlook, with average ratings indicating a "Reduce" stance and a target price of $10.50.

Tranquility Partners LLC lifted its stake in shares of New Mountain Finance Corporation (NASDAQ:NMFC - Free Report) by 92.6% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 232,087 shares of the company's stock after purchasing an additional 111,615 shares during the quarter. New Mountain Finance comprises approximately 0.9% of Tranquility Partners LLC's portfolio, making the stock its 25th biggest position. Tranquility Partners LLC owned about 0.22% of New Mountain Finance worth $2,449,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of NMFC. Farther Finance Advisors LLC raised its stake in shares of 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. Oppenheimer & Co. Inc. raised its stake 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 purchasing an additional 2,450 shares during the last quarter. Transcend Capital Advisors LLC purchased a new stake in shares of New Mountain Finance during the first quarter worth approximately $4,674,000. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of New Mountain Finance by 19.0% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 387,176 shares of the company's stock worth $4,271,000 after purchasing an additional 61,809 shares during the last quarter. Finally, Naviter Wealth LLC raised its stake in shares of New Mountain Finance by 4.5% during the first quarter. Naviter Wealth LLC now owns 197,677 shares of the company's stock worth $2,251,000 after purchasing an additional 8,548 shares during the last quarter. Hedge funds and other institutional investors own 32.08% of the company's stock.

New Mountain Finance Stock Down 0.8%

New Mountain Finance stock opened at $8.93 on Friday. 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 firm has a market capitalization of $949.79 million, a price-to-earnings ratio of 11.75 and a beta of 0.79. New Mountain Finance Corporation has a fifty-two week low of $8.84 and a fifty-two week high of $12.05. The stock's fifty day moving average is $10.08 and its two-hundred day moving average is $10.29.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported $0.32 earnings per share for the quarter, meeting the consensus estimate of $0.32. The company had revenue of $83.49 million for the quarter, compared to analyst estimates 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 prior year, the company earned $0.36 earnings per share. Analysts predict that New Mountain Finance Corporation will post 1.39 EPS for the current fiscal year.

New Mountain Finance Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th were issued a $0.32 dividend. The ex-dividend date of this dividend was Tuesday, September 16th. This represents a $1.28 annualized dividend and a yield of 14.3%. New Mountain Finance's dividend payout ratio is 168.42%.

Analyst Ratings Changes

NMFC has been the subject of several research analyst reports. Weiss Ratings reiterated a "hold (c-)" rating on shares of New Mountain Finance in a research report on Wednesday. Oppenheimer set a $11.00 price objective on New Mountain Finance and gave the stock a "market perform" rating in a research report on Wednesday, August 6th. Bank of America reiterated an "underperform" rating and issued a $10.00 price objective (down previously from $11.75) on shares of New Mountain Finance in a research report on Monday, September 15th. Finally, New Street Research set a $10.00 price objective on New Mountain Finance in a research report on Friday. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $10.50.

Insider Buying and Selling at New Mountain Finance

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