Keefe, Bruyette & Woods Issues Pessimistic Forecast for New Mountain Finance (NASDAQ:NMFC) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on New Mountain Finance (NASDAQ:NMFC) from $9.00 to $8.00, while keeping a “market perform” rating. The new target still implies about 12.5% upside from the current share price.
• Analyst sentiment remains cautious overall, with five analysts rating the stock Hold and two rating it Sell. MarketBeat data shows an average rating of “Reduce” and an average target price of $9.08.
• NMFC shares opened at $7.11, near their 52-week low of $6.80, and the company recently reported earnings in line with expectations but revenue below forecasts. Quarterly revenue fell 19.7% year over year, underscoring pressure on results.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) had its target price dropped by research analysts at Keefe, Bruyette & Woods from $9.00 to $8.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' target price indicates a potential upside of 12.52% from the company's current price.

NMFC has been the topic of a number of other reports. Wall Street Zen upgraded shares of New Mountain Finance from a "sell" rating to a "hold" rating in a report on Sunday, April 5th. Weiss Ratings cut shares of New Mountain Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 18th. Finally, Zacks Research raised shares of New Mountain Finance from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $9.08.

New Mountain Finance Price Performance

NMFC stock opened at $7.11 on Monday. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 1.26. The business has a 50 day moving average price of $7.56 and a two-hundred day moving average price of $8.07. The company has a market cap of $671.54 million, a price-to-earnings ratio of -12.26 and a beta of 0.55. New Mountain Finance has a twelve month low of $6.80 and a twelve month high of $10.88.

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 analysts' consensus estimates of $0.32. The company had revenue of $41.27 million for the quarter, compared to analysts' expectations of $67.76 million. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.The business's revenue was down 19.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.32 EPS. Analysts anticipate that New Mountain Finance will post 1.11 EPS for the current fiscal year.

Hedge Funds Weigh In On New Mountain Finance

Institutional investors and hedge funds have recently made changes to their positions in the company. US Bancorp DE bought a new stake in New Mountain Finance in the 3rd quarter valued at $48,000. Advisory Services Network LLC bought a new position in New Mountain Finance during the 3rd quarter worth $65,000. Sound Income Strategies LLC increased its position in New Mountain Finance by 699.5% during the 4th quarter. Sound Income Strategies LLC now owns 7,683 shares of the company's stock worth $70,000 after buying an additional 6,722 shares during the period. State of Wyoming acquired a new stake in shares of New Mountain Finance during the first quarter worth $71,000. Finally, Catalyst Capital Advisors LLC acquired a new stake in shares of New Mountain Finance during the first quarter worth $93,000. Institutional investors and hedge funds own 32.08% 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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