MidCap Financial Investment (NASDAQ:MFIC) Releases Earnings Results

Key Points

• MidCap Financial Investment reported a sharp quarterly miss, posting EPS of ($0.30) versus analysts' estimate of $0.36 and revenue of ($17.79) million compared to an expected $74.62 million.
• The company paid a quarterly dividend of $0.31 (annualized $1.24) for a yield of 10.3%, but its dividend payout ratio is an elevated 187.88%, suggesting the payout may be unsustainable.
• Shares fell to $12.07 (market cap ≈ $994M), and analysts maintain a consensus “Hold” rating with a $11.54 target after several recent price-target cuts.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) issued its earnings results on Wednesday. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.66), FiscalAI reports. The company had revenue of ($17.79) million for the quarter, compared to analyst estimates of $74.62 million. MidCap Financial Investment had a net margin of 19.69% and a return on equity of 10.43%.

MidCap Financial Investment Stock Performance

MFIC traded down $0.16 during trading on Wednesday, hitting $12.07. The stock had a trading volume of 718,050 shares, compared to its average volume of 806,949. The firm has a market cap of $994.21 million, a PE ratio of 18.29 and a beta of 0.63. MidCap Financial Investment has a 12 month low of $9.48 and a 12 month high of $13.51. The company has a current ratio of 6.65, a quick ratio of 6.65 and a debt-to-equity ratio of 1.53. The company has a 50 day simple moving average of $11.10 and a 200-day simple moving average of $11.46.

MidCap Financial Investment Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 10th were issued a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 10.3%. The ex-dividend date was Tuesday, March 10th. MidCap Financial Investment's dividend payout ratio (DPR) is 187.88%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Advocate Investing Services LLC acquired a new stake in MidCap Financial Investment in the 4th quarter worth $36,000. BNP Paribas Financial Markets acquired a new stake in MidCap Financial Investment in the 3rd quarter worth $55,000. Kestra Advisory Services LLC acquired a new stake in MidCap Financial Investment in the 4th quarter worth $109,000. Tower Research Capital LLC TRC grew its position in MidCap Financial Investment by 20,580.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,513 shares of the company's stock worth $120,000 after purchasing an additional 9,467 shares during the last quarter. Finally, Permanens Capital L.P. acquired a new stake in MidCap Financial Investment in the 3rd quarter worth $132,000. Institutional investors own 28.45% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently weighed in on MFIC shares. Weiss Ratings upgraded shares of MidCap Financial Investment from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, May 1st. Wall Street Zen upgraded shares of MidCap Financial Investment from a "sell" rating to a "hold" rating in a report on Saturday, April 25th. Truist Financial cut their price target on shares of MidCap Financial Investment from $15.00 to $13.00 and set a "buy" rating on the stock in a report on Wednesday, March 4th. JPMorgan Chase & Co. cut their price target on shares of MidCap Financial Investment from $11.50 to $10.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. Finally, Wells Fargo & Company cut their price target on shares of 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. Two research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $11.54.

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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