New Mountain Finance (NASDAQ:NMFC) Posts Earnings Results, Hits Expectations

Key Points

• New Mountain Finance reported Q1 EPS of $0.32, in line with estimates, but revenue missed sharply at $41.27 million versus $67.76 million expected.
• The company paid a quarterly dividend of $0.32 (annualized $1.28) equating to a 15.0% yield853.33%, raising sustainability concerns.
• Analyst sentiment is weak — MarketBeat shows a consensus rating of "Reduce" with a $9.25 price target and several recent downgrades and lowered price objectives (as low as $7.50).

New Mountain Finance (NASDAQ:NMFC - Get Free Report) released its quarterly earnings results on Monday. The company reported $0.32 earnings per share for the quarter, meeting the consensus estimate of $0.32, FiscalAI reports. New Mountain Finance had a return on equity of 10.66% and a net margin of 5.04%.The business had revenue of $41.27 million during the quarter, compared to analysts' expectations of $67.76 million.

New Mountain Finance Trading Down 0.5%

New Mountain Finance stock traded down $0.04 during mid-day trading on Monday, hitting $8.56. The company's stock had a trading volume of 634,538 shares, compared to its average volume of 1,116,467. The company has a 50 day moving average of $8.00 and a 200-day moving average of $8.77. The stock has a market cap of $843.25 million, a PE ratio of 57.07 and a beta of 0.57. The company has a debt-to-equity ratio of 1.41, a quick ratio of 3.16 and a current ratio of 3.16. New Mountain Finance has a one year low of $7.47 and a one year high of $11.04.

New Mountain Finance Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 15.0%. The ex-dividend date of this dividend was Tuesday, March 17th. New Mountain Finance's dividend payout ratio is 853.33%.

Wall Street Analyst Weigh In

NMFC has been the topic of several recent research reports. Zacks Research cut New Mountain Finance from a "hold" rating to a "strong sell" rating in a report on Thursday, February 26th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of New Mountain Finance in a report on Tuesday, April 21st. Wall Street Zen raised New Mountain Finance from a "sell" rating to a "hold" rating in a report on Sunday, April 5th. Keefe, Bruyette & Woods decreased their price objective on 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. Finally, B. Riley Financial decreased their price objective on 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 equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, New Mountain Finance currently has a consensus rating of "Reduce" and a consensus price target of $9.25.

Insider Buying and Selling at New Mountain Finance

In other New Mountain Finance news, COO Laura C. Holson Boswerger acquired 12,500 shares of the business's stock in a transaction on Friday, February 27th. The shares were bought at an average price of $7.74 per share, with a total value of $96,750.00. Following the transaction, the chief operating officer directly owned 81,030 shares of the company's stock, valued at $627,172.20. The trade was a 18.24% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Adam B. Weinstein acquired 12,900 shares of the business's stock in a transaction on Tuesday, March 17th. The stock was acquired at an average cost of $7.61 per share, for a total transaction of $98,169.00. Following the transaction, the executive vice president directly owned 751,756 shares in the company, valued at $5,720,863.16. The trade was a 1.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired 1,200,673 shares of company stock valued at $9,662,634 in the last quarter. 14.90% of the stock is owned by insiders.

Hedge Funds Weigh In On New Mountain Finance

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Virtu Financial LLC grew its position in shares of New Mountain Finance by 66.9% during the 4th quarter. Virtu Financial LLC now owns 21,914 shares of the company's stock worth $202,000 after buying an additional 8,785 shares in the last quarter. Corient Private Wealth LLC bought a new position in shares of New Mountain Finance during the 4th quarter worth $7,450,000. Mercer Global Advisors Inc. ADV bought a new position in shares of New Mountain Finance during the 4th quarter worth $146,000. XTX Topco Ltd bought a new position in shares of New Mountain Finance during the 4th quarter worth $1,728,000. Finally, VARCOV Co. bought a new position in shares of New Mountain Finance during the 4th quarter worth $853,000. 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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