UBS Group AG Raises Holdings in New Mountain Finance Corporation $NMFC

Key Points

• UBS Group AG increased its stake in New Mountain Finance by 33.4% in the fourth quarter, buying 385,891 additional shares and bringing its total holding to 1.54 million shares worth about $14.2 million.
• New Mountain Finance reported mixed quarterly results, meeting EPS estimates at $0.32 but missing revenue expectations with $41.27 million in sales, down 19.7% from a year ago.
• The company cut its dividend to $0.25 per quarter, which still implies a high annualized yield of 12.4%, while analysts currently hold a cautious overall view with a consensus rating of “Reduce.”

UBS Group AG grew its position in shares of New Mountain Finance Corporation (NASDAQ:NMFC - Free Report) by 33.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,541,128 shares of the company's stock after purchasing an additional 385,891 shares during the period. UBS Group AG owned approximately 1.49% of New Mountain Finance worth $14,194,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. State of Alaska Department of Revenue purchased a new position in New Mountain Finance in the third quarter worth about $47,000. US Bancorp DE purchased a new position in New Mountain Finance in the third quarter worth about $48,000. Advisory Services Network LLC purchased a new position in New Mountain Finance in the third quarter worth about $65,000. Sound Income Strategies LLC grew its position in New Mountain Finance by 699.5% in the fourth quarter. Sound Income Strategies LLC now owns 7,683 shares of the company's stock worth $70,000 after acquiring an additional 6,722 shares in the last quarter. Finally, United Capital Financial Advisors LLC purchased a new position in New Mountain Finance in the third quarter worth about $97,000. Hedge funds and other institutional investors own 32.08% of the company's stock.

New Mountain Finance Stock Down 0.5%

Shares of NASDAQ NMFC opened at $8.08 on Thursday. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.02 and a quick ratio of 2.02. The company has a market cap of $763.16 million, a P/E ratio of -13.93 and a beta of 0.57. New Mountain Finance Corporation has a 1 year low of $7.47 and a 1 year high of $11.04. The firm has a 50-day simple moving average of $8.05 and a two-hundred day simple moving average of $8.72.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The company reported $0.32 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.32. The business had revenue of $41.27 million during the quarter, compared to the consensus estimate of $67.76 million. New Mountain Finance had a negative net margin of 18.65% and a positive return on equity of 11.14%. The firm's quarterly revenue was down 19.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.32 earnings per share. Research analysts anticipate that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

New Mountain Finance Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $1.00 annualized dividend and a yield of 12.4%. New Mountain Finance's dividend payout ratio (DPR) is presently -220.69%.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Wall Street Zen upgraded New Mountain Finance from a "sell" rating to a "hold" rating in a research report on Sunday, April 5th. Weiss Ratings reiterated a "hold (c-)" rating on shares of New Mountain Finance in a research report on Tuesday, April 21st. Zacks Research upgraded New Mountain Finance from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Keefe, Bruyette & Woods dropped their price target on New Mountain Finance from $10.00 to $9.00 and set a "market perform" rating for the company in a research report on Wednesday, March 4th. Finally, Wells Fargo & Company dropped their price target on New Mountain Finance from $10.00 to $8.00 and set an "equal weight" rating for the company in a research report on Thursday, February 26th. Six investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $9.25.

Insiders Place Their Bets

In other news, EVP Adam B. Weinstein acquired 12,900 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was acquired at an average price of $7.61 per share, with a total value of $98,169.00. Following the completion of the purchase, the executive vice president directly owned 751,756 shares in the company, valued at approximately $5,720,863.16. This trade represents a 1.75% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Steven B. Klinsky acquired 276,242 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was purchased 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 of the company's stock, valued at $43,235,406.90. The trade was a 5.42% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 1,200,673 shares of company stock valued at $9,662,634 over the last 90 days. Insiders own 14.90% of the company's stock.

About New Mountain Finance

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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