Van ECK Associates Corp Has $30.12 Million Position in MidCap Financial Investment Corporation $MFIC

Key Points

• VanEck Associates Corp increased its stake in MidCap Financial Investment to 2,511,678 shares (about 2.69% ownership), valued at roughly $30.12 million at quarter-end; institutional investors own about 28.45% of the stock.
• The company disclosed a quarterly dividend of $0.31 (annualized $1.24), implying a 12.2% yield, but the payout ratio is an elevated 187.9%, raising questions about dividend sustainability.
• MFIC has a consensus analyst rating of "Hold" with an average price target of $11.75, amid recent downward target revisions from Wells Fargo ($9.50) and RBC ($11.00).

Van ECK Associates Corp raised its holdings in MidCap Financial Investment Corporation (NASDAQ:MFIC - Free Report) by 5.1% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,511,678 shares of the company's stock after acquiring an additional 121,523 shares during the quarter. Van ECK Associates Corp owned about 2.69% of MidCap Financial Investment worth $30,115,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Caxton Associates LLP bought a new position in shares of MidCap Financial Investment during the 1st quarter valued at $166,000. Envestnet Asset Management Inc. increased its position in MidCap Financial Investment by 9.0% during the second quarter. Envestnet Asset Management Inc. now owns 48,838 shares of the company's stock worth $616,000 after buying an additional 4,014 shares during the last quarter. Condor Capital Management raised its holdings in MidCap Financial Investment by 4.0% during the second quarter. Condor Capital Management now owns 412,875 shares of the company's stock valued at $5,210,000 after buying an additional 15,789 shares in the last quarter. Rockefeller Capital Management L.P. raised its holdings in MidCap Financial Investment by 1.5% during the second quarter. Rockefeller Capital Management L.P. now owns 77,277 shares of the company's stock valued at $975,000 after buying an additional 1,111 shares in the last quarter. Finally, Nomura Asset Management Co. Ltd. lifted its position in shares of MidCap Financial Investment by 20.6% in the second quarter. Nomura Asset Management Co. Ltd. now owns 6,706 shares of the company's stock worth $85,000 after buying an additional 1,147 shares during the last quarter. 28.45% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on MFIC. Weiss Ratings reissued a "hold (c)" rating on shares of MidCap Financial Investment in a research note on Thursday, January 22nd. Wells Fargo & Company dropped their price target on shares of MidCap Financial Investment from $11.00 to $9.50 and set an "equal weight" rating on the stock in a research report on Monday, March 2nd. Zacks Research upgraded shares of MidCap Financial Investment from a "strong sell" rating to a "hold" rating in a research note on Thursday, December 11th. Wall Street Zen upgraded shares of MidCap Financial Investment from a "sell" rating to a "hold" rating in a research note on Saturday, December 6th. Finally, Royal Bank Of Canada dropped their target price on shares of MidCap Financial Investment from $13.00 to $11.00 and set a "sector perform" rating on the stock in a report on Thursday, March 5th. Two investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $11.75.

MidCap Financial Investment Stock Performance

NASDAQ MFIC opened at $10.20 on Thursday. The company's fifty day moving average is $11.10 and its two-hundred day moving average is $11.73. MidCap Financial Investment Corporation has a 52-week low of $9.48 and a 52-week high of $13.51. The company has a debt-to-equity ratio of 1.53, a current ratio of 6.65 and a quick ratio of 6.65. The firm has a market capitalization of $940.54 million, a price-to-earnings ratio of 15.45 and a beta of 0.78.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.02. MidCap Financial Investment had a net margin of 19.69% and a return on equity of 10.43%. The business had revenue of ($1.38) million during the quarter, compared to analysts' expectations of $78.87 million. Equities research analysts forecast that MidCap Financial Investment Corporation will post 1.73 EPS for the current year.

MidCap Financial Investment Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th will be given a dividend of $0.31 per share. The ex-dividend date is Tuesday, March 10th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 12.2%. MidCap Financial Investment's payout ratio is currently 187.88%.

MidCap Financial Investment Profile

MidCap Financial Investment Corporation NASDAQ: MFIC is a business development company that provides financing solutions to middle-market companies across the United States. The firm specializes in direct lending and asset-based financing, offering a range of debt instruments designed to support working capital needs, equipment acquisitions, lease financing and corporate recapitalizations. Its focus on senior secured loans, unitranche structures and equipment financings positions it to serve clients in sectors such as manufacturing, healthcare, transportation and energy.

Through its lending platform, MidCap Financial Investment Corporation partners with privately held and sponsor-backed companies that typically generate annual revenues between $25 million and $500 million.

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