New Mountain Finance Corporation (NASDAQ:NMFC) to Issue $0.32 Quarterly Dividend

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) declared 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 of this dividend is Tuesday, September 16th.

New Mountain Finance has a 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 decline. 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 0.5%

NASDAQ:NMFC traded up $0.05 during mid-day trading on Friday, reaching $10.25. The stock had a trading volume of 608,456 shares, compared to its average volume of 399,433. The business's 50 day moving average is $10.56 and its 200 day moving average is $10.74. New Mountain Finance has a fifty-two week low of $8.84 and a fifty-two week high of $12.44. The stock has a market cap of $1.09 billion, a P/E ratio of 13.49 and a beta of 0.82. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.42 and a quick ratio of 2.22.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last announced its quarterly earnings results on Monday, August 4th. The company reported $0.32 EPS 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 the consensus estimate of $84.57 million. During the same quarter last year, the company posted $0.36 earnings per share. As a group, sell-side analysts predict that New Mountain Finance will post 1.39 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Oppenheimer & Co. Inc. lifted its position in New Mountain Finance by 7.9% in the first quarter. Oppenheimer & Co. Inc. now owns 33,624 shares of the company's stock worth $371,000 after purchasing an additional 2,450 shares during the period. ProShare Advisors LLC lifted its position in New Mountain Finance by 17.2% in the fourth quarter. ProShare Advisors LLC now owns 18,161 shares of the company's stock worth $204,000 after purchasing an additional 2,664 shares during the period. Squarepoint Ops LLC lifted its position in New Mountain Finance by 179.7% in the fourth quarter. Squarepoint Ops LLC now owns 40,292 shares of the company's stock worth $454,000 after purchasing an additional 25,886 shares during the period. Jane Street Group LLC lifted its position in New Mountain Finance by 232.7% in the fourth quarter. Jane Street Group LLC now owns 104,285 shares of the company's stock worth $1,174,000 after purchasing an additional 72,944 shares during the period. Finally, D. E. Shaw & Co. Inc. lifted its position in New Mountain Finance by 161.2% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 124,989 shares of the company's stock worth $1,407,000 after purchasing an additional 77,141 shares during the period. 32.08% of the stock is owned by institutional investors.

New Mountain Finance Company Profile

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.