New Mountain Finance Corporation (NASDAQ:NMFC) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• New Mountain Finance received a consensus “Reduce” rating from seven brokerages: two analysts recommend selling and five recommend holding. The average 12-month price target is $9.08.
• NMFC shares opened at $6.92, near their 52-week low of $6.73 and below both their 50-day and 200-day moving averages. Keefe, Bruyette & Woods recently cut its price target from $9 to $8 while maintaining a “market perform” rating.
• The company met quarterly EPS expectations at $0.32, but revenue fell 19.7% year over year to $41.27 million, substantially below the $67.76 million analyst estimate. Institutional investors own approximately 32.1% of the stock.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) has been assigned a consensus rating of "Reduce" from the seven brokerages that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $9.0833.

A number of brokerages have recently commented on NMFC. Weiss Ratings lowered New Mountain Finance from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 18th. Keefe, Bruyette & Woods dropped their price objective on shares of New Mountain Finance from $9.00 to $8.00 and set a "market perform" rating on the stock in a report on Monday, July 20th. Wall Street Zen raised New Mountain Finance from a "sell" rating to a "hold" rating in a research report on Sunday, April 5th. Finally, Zacks Research upgraded New Mountain Finance from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th.

Institutional Investors Weigh In On New Mountain Finance

Large investors have recently modified their holdings of the stock. Entropy Technologies LP acquired a new position in New Mountain Finance during the first quarter worth $186,000. State of Wyoming bought a new position in shares of New Mountain Finance in the first quarter valued at approximately $71,000. Glenview Trust Co boosted its holdings in shares of New Mountain Finance by 73.3% in the 1st quarter. Glenview Trust Co now owns 17,500 shares of the company's stock worth $136,000 after acquiring an additional 7,400 shares in the last quarter. Catalyst Capital Advisors LLC acquired a new position in shares of New Mountain Finance in the 1st quarter worth approximately $93,000. Finally, Y Intercept Hong Kong Ltd bought a new stake in New Mountain Finance during the 1st quarter worth approximately $236,000. 32.08% of the stock is currently owned by institutional investors.

New Mountain Finance Stock Down 2.1%

NMFC opened at $6.92 on Thursday. The firm has a market cap of $653.59 million, a P/E ratio of -11.93 and a beta of 0.55. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.02 and a current ratio of 2.02. The business has a 50 day moving average price of $7.38 and a 200 day moving average price of $7.94. New Mountain Finance has a twelve month low of $6.73 and a twelve month high of $10.71.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last released its earnings results on Monday, May 4th. The company reported $0.32 earnings per share for the quarter, hitting analysts' consensus estimates of $0.32. The firm had revenue of $41.27 million during the quarter, compared to analyst estimates of $67.76 million. New Mountain Finance had a negative net margin of 18.65% and a positive return on equity of 11.14%. The business's revenue was down 19.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.32 EPS. Research analysts forecast that New Mountain Finance will post 1.1 EPS for the current year.

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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