Insider Buying: New Mountain Finance (NASDAQ:NMFC) Director Buys 223,758 Shares of Stock

Key Points

• Director Steven Klinsky bought 223,758 shares at an average price of $8.05 (totaling $1.80M) on March 10, increasing his direct stake to 5,186,696 shares (a 4.51% rise) worth roughly $41.75M.
• The company declared a $0.32 quarterly dividend (annualized $1.28) yielding 16.2% but with an unsustainably high payout ratio of 853.33%; shares trade near $7.92 and analysts' consensus is a "Reduce" rating with an average price target around $9.25.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) Director Steven Klinsky acquired 223,758 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were bought at an average cost of $8.05 per share, for a total transaction of $1,801,251.90. Following the transaction, the director directly owned 5,186,696 shares of the company's stock, valued at approximately $41,752,902.80. This trade represents a 4.51% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

New Mountain Finance Stock Down 1.4%

Shares of NASDAQ NMFC traded down $0.11 during mid-day trading on Thursday, hitting $7.92. The company had a trading volume of 1,569,313 shares, compared to its average volume of 1,228,347. The company has a market capitalization of $817.00 million, a PE ratio of 52.80 and a beta of 0.59. The business's 50-day simple moving average is $8.55 and its 200 day simple moving average is $9.26. New Mountain Finance Corporation has a 1-year low of $7.52 and a 1-year high of $11.23. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.16 and a quick ratio of 3.16.

New Mountain Finance Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 16.2%. The ex-dividend date is Tuesday, March 17th. New Mountain Finance's dividend payout ratio (DPR) is presently 853.33%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Zacks Research lowered shares of New Mountain Finance from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 26th. B. Riley Financial decreased their price target on shares of New Mountain Finance from $10.00 to $7.50 and set a "neutral" rating for the company in a research note on Tuesday, March 3rd. Weiss Ratings reiterated a "hold (c-)" rating on shares of New Mountain Finance in a report on Thursday, January 22nd. Keefe, Bruyette & Woods dropped their price objective on shares of New Mountain Finance from $10.00 to $9.00 and set a "market perform" rating on the stock in a research report on Wednesday, March 4th. Finally, Wells Fargo & Company reduced their price objective on shares of New Mountain Finance from $10.00 to $8.00 and set an "equal weight" rating on the stock in a report on Thursday, February 26th. Five investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Reduce" and an average price target of $9.25.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Sumitomo Mitsui Trust Group Inc. increased its stake in New Mountain Finance by 23.4% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 606,264 shares of the company's stock valued at $5,844,000 after purchasing an additional 114,840 shares during the last quarter. Acadian Asset Management LLC raised its holdings in New Mountain Finance by 266.7% during the second quarter. Acadian Asset Management LLC now owns 345,926 shares of the company's stock worth $3,647,000 after purchasing an additional 251,596 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of New Mountain Finance by 29.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,595,646 shares of the company's stock worth $15,382,000 after buying an additional 363,443 shares during the last quarter. Franklin Resources Inc. lifted its position in shares of New Mountain Finance by 18.1% during the 2nd quarter. Franklin Resources Inc. now owns 643,433 shares of the company's stock worth $6,788,000 after buying an additional 98,603 shares during the last quarter. Finally, Dimension Capital Management LLC boosted its holdings in shares of New Mountain Finance by 17.0% in the 2nd quarter. Dimension Capital Management LLC now owns 950,072 shares of the company's stock valued at $10,023,000 after buying an additional 138,123 shares in the last quarter. Hedge funds and other institutional investors own 32.08% of the company's stock.

New Mountain Finance Company 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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