New Mountain Finance Corporation (NASDAQ:NMFC) Declares Quarterly Dividend of $0.32

Key Points

• New Mountain Finance Corporation announced a quarterly dividend of $0.32 per share, which will be paid on September 30th to shareholders of record as of September 16th, representing a 12.6% dividend yield.
• The company has a payout ratio of 92.1%, suggesting that its dividends are currently covered by earnings, although future coverage could be at risk if earnings decline.
• Analysts anticipate New Mountain Finance to earn $1.31 per share next year, allowing it to maintain coverage of its annual dividend of $1.28, but the expected payout ratio could increase to 97.7%.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) announced a quarterly dividend on Tuesday, August 5th, Wall Street Journal reports. Investors of record on Tuesday, September 16th will be given a dividend of 0.32 per share on Tuesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 12.5%. The ex-dividend date is Tuesday, September 16th.

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. Research analysts expect New Mountain Finance to earn $1.31 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 97.7%.

New Mountain Finance Stock Up 0.3%

Shares of New Mountain Finance stock traded up $0.04 during trading on Friday, hitting $10.24. 248,370 shares of the stock traded hands, compared to its average volume of 472,292. The stock has a market cap of $1.09 billion, a P/E ratio of 13.47 and a beta of 0.82. The company has a fifty day moving average price of $10.57 and a two-hundred day moving average price of $10.75. The company has a debt-to-equity ratio of 1.35, a quick ratio of 2.22 and a current ratio of 1.42. New Mountain Finance has a twelve month low of $8.84 and a twelve month high of $12.44.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported $0.32 earnings per share for the quarter, meeting the consensus estimate of $0.32. New Mountain Finance had a return on equity of 10.43% and a net margin of 23.27%. The company had revenue of $83.49 million for the quarter, compared to analyst estimates of $84.57 million. During the same period last year, the company earned $0.36 earnings per share. Equities research analysts predict that New Mountain Finance will post 1.39 EPS for the current fiscal year.

Institutional Investors Weigh In On New Mountain Finance

A number of institutional investors and hedge funds have recently made changes to their positions in NMFC. LSV Asset Management boosted its stake in New Mountain Finance by 14.3% in the first quarter. LSV Asset Management now owns 2,764,111 shares of the company's stock valued at $30,488,000 after acquiring an additional 346,508 shares during the last quarter. Invesco Ltd. raised its holdings in New Mountain Finance by 10.7% in the first quarter. Invesco Ltd. now owns 1,091,476 shares of the company's stock worth $12,039,000 after purchasing an additional 105,559 shares during the period. Transcend Capital Advisors LLC increased its position in shares of New Mountain Finance by 68.5% in the 2nd quarter. Transcend Capital Advisors LLC now owns 714,104 shares of the company's stock valued at $7,534,000 after buying an additional 290,320 shares in the last quarter. Millennium Management LLC grew its stake in New Mountain Finance by 36.9% in the first quarter. Millennium Management LLC now owns 711,050 shares of the company's stock valued at $7,843,000 after acquiring an additional 191,518 shares during the period. Finally, Muzinich & Co. Inc. increased its holdings in shares of New Mountain Finance by 46.4% in the second quarter. Muzinich & Co. Inc. now owns 575,474 shares of the company's stock worth $6,071,000 after acquiring an additional 182,338 shares in the last quarter. Institutional investors own 32.08% of the company's stock.

About New Mountain Finance

New Mountain Finance Corporation Nasdaq: NMFC, a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes, and mezzanine securities.