Transcend Capital Advisors LLC Has $3.87 Million Stake in New Mountain Finance Corporation $NMFC

Key Points

• Transcend Capital Advisors cut its stake in New Mountain Finance by 41.3% to 420,509 shares valued at $3.87 million (0.41% of the company), even as other institutions boosted positions and institutional investors now own about 32.08% of the stock.
• Company insiders have been buying heavily — Director Steven B. Klinsky purchased 276,242 shares at $8.05 and insiders bought 1,200,673 shares totaling roughly $9.66 million in the last three months, bringing insider ownership to 14.90%.
• Analysts are generally negative, with a MarketBeat consensus rating of "Reduce" and a $9.25 target after multiple downgrades, while the stock offers a 15.7% yield but an unsustainably high payout ratio of 853%, signaling dividend risk.

Transcend Capital Advisors LLC lowered its position in New Mountain Finance Corporation (NASDAQ:NMFC - Free Report) by 41.3% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 420,509 shares of the company's stock after selling 295,284 shares during the period. Transcend Capital Advisors LLC owned 0.41% of New Mountain Finance worth $3,873,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of New Mountain Finance by 23.4% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 606,264 shares of the company's stock worth $5,844,000 after purchasing an additional 114,840 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of New Mountain Finance by 29.5% in the 3rd 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 period. Muzinich & Co. Inc. lifted its stake in shares of New Mountain Finance by 26.6% in the 4th quarter. Muzinich & Co. Inc. now owns 849,437 shares of the company's stock valued at $7,823,000 after purchasing an additional 178,381 shares during the period. Hennion & Walsh Asset Management Inc. lifted its stake in shares of New Mountain Finance by 17.1% in the 3rd quarter. Hennion & Walsh Asset Management Inc. now owns 480,420 shares of the company's stock valued at $4,631,000 after purchasing an additional 70,277 shares during the period. Finally, Tranquility Partners LLC lifted its stake in shares of New Mountain Finance by 36.4% in the 3rd quarter. Tranquility Partners LLC now owns 316,671 shares of the company's stock valued at $3,053,000 after purchasing an additional 84,584 shares during the period. Institutional investors and hedge funds own 32.08% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Weiss Ratings reissued a "hold (c-)" rating on shares of New Mountain Finance in a research note on Thursday, January 22nd. Zacks Research downgraded New Mountain Finance from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 26th. B. Riley Financial dropped their price objective on New Mountain Finance from $10.00 to $7.50 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. 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. 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 equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $9.25.

Insider Buying and Selling

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

New Mountain Finance Stock Up 1.8%

NMFC stock opened at $8.13 on Tuesday. The stock's 50 day simple moving average is $8.00 and its 200 day simple moving average is $8.87. New Mountain Finance Corporation has a fifty-two week low of $7.47 and a fifty-two week high of $11.04. The company has a debt-to-equity ratio of 1.41, a quick ratio of 3.16 and a current ratio of 3.16. The company has a market cap of $800.89 million, a P/E ratio of 54.20 and a beta of 0.54.

New Mountain Finance Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th were paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 15.7%. The ex-dividend date of this dividend was Tuesday, March 17th. New Mountain Finance's dividend payout ratio is 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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