New Mountain Finance Corporation (NASDAQ:NMFC) Plans $0.25 Quarterly Dividend

Key Points

• $0.25 quarterly dividend declared, payable June 30 to shareholders of record June 16, implying a $1.00 annualized payout and a yield of 11.7%.
• Dividend sustainability is a concern: New Mountain Finance has a current payout ratio of 92.1%, but analysts expect next-year EPS of $1.06, which would imply a ~120.8% payout ratio and could make the dividend unsupportable if earnings decline.
• Analysts carry a consensus "Reduce" rating with a $9.25 price target; NMFC trades around $8.56 (12‑month range $7.47–$11.04) after reporting revenue down 19.7% year‑over‑year and QEPS of $0.32.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) declared a quarterly dividend on Monday, May 4th. Shareholders of record on Tuesday, June 16th will be given a dividend of 0.25 per share on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 11.7%. The ex-dividend date of this dividend is Tuesday, June 16th.

New Mountain Finance has raised its dividend by an average of 0.0%annually over the last three years. New Mountain Finance has a dividend payout ratio of 92.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect New Mountain Finance to earn $1.06 per share next year, which means the company may not be able to cover its $1.28 annual dividend with an expected future payout ratio of 120.8%.

New Mountain Finance Price Performance

NMFC stock opened at $8.56 on Tuesday. The company has a quick ratio of 3.16, a current ratio of 3.16 and a debt-to-equity ratio of 1.41. New Mountain Finance has a 12 month low of $7.47 and a 12 month high of $11.04. The firm has a market cap of $843.25 million, a P/E ratio of 57.07 and a beta of 0.57. The company's 50-day moving average price is $8.00 and its two-hundred day moving average price is $8.77.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last released its earnings results on Monday, May 4th. The company reported $0.32 EPS for the quarter, meeting the consensus estimate of $0.32. New Mountain Finance had a net margin of 5.04% and a return on equity of 10.66%. The firm had revenue of $41.27 million for the quarter, compared to analyst estimates of $67.76 million. During the same period last year, the firm earned $0.32 EPS. The business's quarterly revenue was down 19.7% compared to the same quarter last year. On average, analysts anticipate that New Mountain Finance will post 1.12 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms have commented on NMFC. Zacks Research lowered shares of New Mountain Finance from a "hold" rating to a "strong sell" rating in a report on Thursday, February 26th. Weiss Ratings reissued a "hold (c-)" rating on shares of New Mountain Finance in a report on Tuesday, April 21st. Keefe, Bruyette & Woods decreased their target price on shares of New Mountain Finance from $10.00 to $9.00 and set a "market perform" rating on the stock in a report on Wednesday, March 4th. Wall Street Zen raised shares of New Mountain Finance from a "sell" rating to a "hold" rating in a report on Sunday, April 5th. Finally, B. Riley Financial decreased their target price on shares of New Mountain Finance from $10.00 to $7.50 and set a "neutral" rating on the stock in a report on Tuesday, March 3rd. Five investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, New Mountain Finance has a consensus rating of "Reduce" and a consensus price target of $9.25.

New Mountain Finance Company Profile

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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