MidCap Financial Investment Corporation (NASDAQ:MFIC) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts give MidCap Financial Investment a consensus "Hold" rating (7 holds, 2 buys) with an average 12‑month price target of about $11.54, and several brokers have recently trimmed targets (Truist, RBC, KBW, Wells Fargo).
• The company pays a high quarterly dividend ($0.31; annualized $1.24) implying a 10.5% dividend yield, but the payout ratio is an unsustainably high 187.88%, and the firm reportedly has cut its dividend.
• MidCap posted an EPS beat of $0.39 vs. $0.37 last quarter, while the firm trades at a market cap of about $1.09 billion and a PE of ~17.9, with a 52‑week range of $9.48–$13.51.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) has earned a consensus rating of "Hold" from the nine analysts that are presently covering the firm, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $11.5357.

Several brokerages recently weighed in on MFIC. Weiss Ratings reiterated a "hold (c)" rating on shares of MidCap Financial Investment in a report on Thursday, January 22nd. Truist Financial reduced their target price on shares of MidCap Financial Investment from $15.00 to $13.00 and set a "buy" rating for the company in a report on Wednesday, March 4th. Royal Bank Of Canada lowered their price target 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. Keefe, Bruyette & Woods reduced their price objective on MidCap Financial Investment from $13.00 to $11.50 and set a "market perform" rating for the company in a research note on Tuesday, March 10th. Finally, Wells Fargo & Company dropped their target price on MidCap Financial Investment from $11.00 to $9.50 and set an "equal weight" rating on the stock in a report on Monday, March 2nd.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sound Income Strategies LLC raised its position in shares of MidCap Financial Investment by 167.4% in the fourth quarter. Sound Income Strategies LLC now owns 2,989 shares of the company's stock worth $35,000 after acquiring an additional 1,871 shares during the period. Advocate Investing Services LLC acquired a new position in MidCap Financial Investment in the 4th quarter worth about $36,000. Physician Wealth Advisors Inc. purchased a new position in MidCap Financial Investment during the third quarter worth approximately $42,000. State of Alaska Department of Revenue acquired a new stake in MidCap Financial Investment in the third quarter valued at approximately $46,000. Finally, Financial Consulate Inc. purchased a new stake in shares of MidCap Financial Investment in the third quarter valued at approximately $46,000. Hedge funds and other institutional investors own 28.45% of the company's stock.

MidCap Financial Investment Price Performance

Shares of MFIC opened at $11.83 on Tuesday. 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 company's fifty day moving average price is $11.02 and its 200-day moving average price is $11.47. MidCap Financial Investment has a 1-year low of $9.48 and a 1-year high of $13.51. The firm has a market capitalization of $1.09 billion, a PE ratio of 17.92 and a beta of 0.66.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.02. The company had revenue of ($1.38) million during the quarter, compared to analyst estimates of $78.87 million. MidCap Financial Investment had a return on equity of 10.43% and a net margin of 19.69%. On average, equities research analysts predict that MidCap Financial Investment will post 1.36 EPS for the current year.

MidCap Financial Investment Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th were issued a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 10.5%. The ex-dividend date of this dividend was Tuesday, March 10th. MidCap Financial Investment's payout ratio is 187.88%.

About MidCap Financial Investment

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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