New Mountain Finance (NASDAQ:NMFC) Issues Earnings Results

Key Points

• New Mountain Finance matched earnings expectations with quarterly EPS of $0.26, but revenue of $39.02 million fell well short of the $62.78 million analyst estimate. The company reported an 11.14% return on equity and a negative 18.65% net margin.
• Shares rose 4.9% to $7.23 in Monday trading, though the stock remains below its 52-week high of $10.71. NMFC has a market capitalization of approximately $682.9 million and a debt-to-equity ratio of 1.26.
• Analyst sentiment remains cautious, with five Hold ratings and two Sell ratings producing a consensus “Reduce” rating and an average price target of $9.08. Institutional investors own 32.08% of the company.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) issued its quarterly earnings data on Monday. The company reported $0.26 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.26, FiscalAI reports. The business had revenue of $39.02 million for the quarter, compared to analysts' expectations of $62.78 million. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.

New Mountain Finance Trading Up 4.9%

NASDAQ:NMFC traded up $0.34 during mid-day trading on Monday, hitting $7.23. 779,825 shares of the stock traded hands, compared to its average volume of 905,746. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 1.26. New Mountain Finance has a 52 week low of $6.73 and a 52 week high of $10.71. The stock has a market capitalization of $682.89 million, a price-to-earnings ratio of -12.47 and a beta of 0.55. The firm's 50 day moving average is $7.34 and its two-hundred day moving average is $7.91.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on NMFC shares. Keefe, Bruyette & Woods decreased their target price on shares of New Mountain Finance from $9.00 to $8.00 and set a "market perform" rating on the stock in a research report on Monday, July 20th. Wall Street Zen raised New Mountain Finance from a "sell" rating to a "hold" rating in a research note on Sunday, April 5th. Weiss Ratings downgraded New Mountain Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 18th. Finally, Zacks Research raised New Mountain Finance from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Five research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $9.08.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of NMFC. JPMorgan Chase & Co. raised its holdings in shares of New Mountain Finance by 27.8% in the fourth quarter. JPMorgan Chase & Co. now owns 2,038,662 shares of the company's stock worth $18,776,000 after buying an additional 443,016 shares during the period. Rivernorth Capital Management LLC bought a new stake in shares of New Mountain Finance during the 4th quarter worth approximately $12,326,000. Invesco Ltd. boosted its holdings in New Mountain Finance by 18.5% during the 3rd quarter. Invesco Ltd. now owns 1,219,813 shares of the company's stock valued at $11,759,000 after acquiring an additional 190,152 shares during the period. Corient Private Wealth LLC purchased a new position in New Mountain Finance during the 4th quarter valued at $7,450,000. Finally, Millennium Management LLC grew its position in New Mountain Finance by 36.9% in the 1st 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 last quarter. Hedge funds and other institutional investors own 32.08% of the company's stock.

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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