Insider Buying: New Mountain Finance (NASDAQ:NMFC) EVP Purchases 49,750 Shares of Stock

Key Points

• Adam Weinstein, the Executive Vice President of New Mountain Finance, purchased 49,750 shares of the company at an average price of $10.03 per share, increasing his ownership by 8.25%.
• The company recently announced a $0.32 per share dividend, representing an annualized dividend of $1.28 with a yield of 13.1%, despite a payout ratio of 168.42%.
• New Mountain Finance's stock has experienced a decline, trading at $9.78, down from its 50-day and 200-day moving average of $10.50, with analysts expressing caution on its forecast.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) EVP Adam B. Weinstein bought 49,750 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The stock was purchased at an average cost of $10.03 per share, with a total value of $498,992.50. Following the completion of the purchase, the executive vice president directly owned 652,490 shares of the company's stock, valued at $6,544,474.70. This represents a 8.25% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

New Mountain Finance Stock Up 0.7%

Shares of NASDAQ:NMFC traded up $0.07 during midday trading on Friday, hitting $9.91. The stock had a trading volume of 1,195,452 shares, compared to its average volume of 537,311. New Mountain Finance Corporation has a 12 month low of $8.84 and a 12 month high of $12.09. The company has a quick ratio of 1.42, a current ratio of 1.42 and a debt-to-equity ratio of 1.35. The business's 50-day simple moving average is $10.42 and its 200-day simple moving average is $10.46. The company has a market cap of $1.05 billion, a P/E ratio of 13.04 and a beta of 0.80.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last released 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. New Mountain Finance had a net margin of 23.27% and a return on equity of 10.43%. The business had revenue of $83.49 million during the quarter, compared to analysts' expectations of $84.57 million. During the same period last year, the business earned $0.36 earnings per share. On average, sell-side analysts forecast that New Mountain Finance Corporation will post 1.39 earnings per share for the current fiscal year.

New Mountain Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 12.9%. The ex-dividend date of this dividend is Tuesday, September 16th. New Mountain Finance's payout ratio is 168.42%.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Oppenheimer set a $11.00 price objective on shares of New Mountain Finance and gave the stock a "market perform" rating in a research report on Wednesday, August 6th. Bank of America reaffirmed an "underperform" rating and set a $10.00 price objective (down from $11.75) on shares of New Mountain Finance in a research report on Monday, September 15th. Four investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $10.60.

Institutional Investors Weigh In On New Mountain Finance

A number of hedge funds and other institutional investors have recently modified their holdings of NMFC. Transcend Capital Advisors LLC acquired a new stake in shares of New Mountain Finance during the first quarter worth $4,674,000. LSV Asset Management raised its stake in New Mountain Finance by 14.3% in the first quarter. LSV Asset Management now owns 2,764,111 shares of the company's stock valued at $30,488,000 after purchasing an additional 346,508 shares in the last quarter. Millennium Management LLC raised its stake in New Mountain Finance by 102.2% in the fourth quarter. Millennium Management LLC now owns 519,532 shares of the company's stock valued at $5,850,000 after purchasing an additional 262,631 shares in the last quarter. Acadian Asset Management LLC raised its stake in New Mountain Finance by 266.7% in the second quarter. Acadian Asset Management LLC now owns 345,926 shares of the company's stock valued at $3,647,000 after purchasing an additional 251,596 shares in the last quarter. Finally, Marshall Wace LLP acquired a new position in New Mountain Finance in the second quarter valued at about $2,303,000. Institutional investors and hedge funds own 32.08% of the company's stock.

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.