MidCap Financial Investment Corporation Plans Quarterly Dividend of $0.31 (NASDAQ:MFIC)

Key Points

• MidCap Financial Investment declared a quarterly dividend of $0.31 per share, payable September 24 to shareholders of record September 8. The dividend implies an annualized payout of $1.24 and a 12.8% yield.
• The dividend is currently supported by earnings with an 82.7% payout ratio, but analysts project a future payout ratio above 100%, raising concerns about sustainability if earnings weaken.
• The company reported a quarterly loss of $0.21 per share, missing estimates by $0.58, while analysts maintain a consensus “Hold” rating and an average price target of $11.46.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Shareholders of record on Tuesday, September 8th will be paid a dividend of 0.31 per share on Thursday, September 24th. This represents a c) annualized dividend and a yield of 12.8%. The ex-dividend date of this dividend is Tuesday, September 8th.

MidCap Financial Investment has decreased its dividend payment by an average of 0.0%annually over the last three years. MidCap Financial Investment has a dividend payout ratio of 82.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities research analysts expect MidCap Financial Investment to earn $1.22 per share next year, which means the company may not be able to cover its $1.24 annual dividend with an expected future payout ratio of 101.6%.

MidCap Financial Investment Stock Performance

NASDAQ MFIC traded up $0.23 during trading on Thursday, reaching $9.71. The company's stock had a trading volume of 1,297,103 shares, compared to its average volume of 817,156. The company has a current ratio of 4.42, a quick ratio of 4.42 and a debt-to-equity ratio of 1.59. The firm has a market capitalization of $799.81 million, a price-to-earnings ratio of 242.81 and a beta of 0.61. MidCap Financial Investment has a 12 month low of $9.28 and a 12 month high of $13.34. The firm has a 50 day moving average price of $9.99 and a 200 day moving average price of $10.73.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.37 by ($0.58). MidCap Financial Investment had a return on equity of 10.86% and a net margin of 1.90%.The business had revenue of ($9.12) million for the quarter, compared to the consensus estimate of $67.80 million. As a group, equities analysts anticipate that MidCap Financial Investment will post 1.38 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on MFIC shares. Wall Street Zen raised MidCap Financial Investment from a "sell" rating to a "hold" rating in a research report on Saturday, April 25th. JPMorgan Chase & Co. reduced their target price on MidCap Financial Investment from $10.00 to $9.50 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Finally, Weiss Ratings cut MidCap Financial Investment from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 18th. Two investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $11.46.

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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