New Mountain Finance (NASDAQ:NMFC) Sets New 52-Week Low - Here's What Happened

Key Points

• New Mountain Finance hit a new 52-week low on Thursday, trading as low as $6.73 before closing near $6.81, below its prior close of $6.92.
• Analyst sentiment has weakened, with Keefe, Bruyette & Woods cutting its price target to $8.00 and several firms maintaining or downgrading the stock; the consensus rating is now Reduce with an average target price of $9.08.
• The company recently reported earnings that matched EPS expectations at $0.32, but revenue came in below forecasts at $41.27 million and fell 19.7% year over year.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report)'s stock price reached a new 52-week low during trading on Thursday . The stock traded as low as $6.73 and last traded at $6.8050, with a volume of 401467 shares changing hands. The stock had previously closed at $6.92.

Analysts Set New Price Targets

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

New Mountain Finance Stock Performance

The firm has a market capitalization of $644.62 million, a price-to-earnings ratio of -11.76 and a beta of 0.55. The firm's 50-day moving average price is $7.50 and its two-hundred day moving average price is $8.02. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.02 and a current ratio of 2.02.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last announced its quarterly earnings results on Monday, May 4th. The company reported $0.32 EPS for the quarter, hitting analysts' consensus estimates of $0.32. New Mountain Finance had a negative net margin of 18.65% and a positive return on equity of 11.14%. The firm had revenue of $41.27 million during the quarter, compared to analysts' expectations of $67.76 million. During the same quarter last year, the company earned $0.32 earnings per share. The company's revenue for the quarter was down 19.7% compared to the same quarter last year. Sell-side analysts predict that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in NMFC. US Bancorp DE acquired a new position in New Mountain Finance in the third quarter worth $48,000. Advisory Services Network LLC bought a new position in shares of New Mountain Finance in the third quarter valued at about $65,000. Sound Income Strategies LLC lifted its position in New Mountain Finance by 699.5% during the 4th quarter. Sound Income Strategies LLC now owns 7,683 shares of the company's stock worth $70,000 after buying an additional 6,722 shares in the last quarter. State of Wyoming acquired a new position in New Mountain Finance during the 1st quarter worth about $71,000. Finally, Catalyst Capital Advisors LLC bought a new stake in New Mountain Finance during the 1st quarter worth about $93,000. 32.08% of the stock is owned by institutional investors.

About New Mountain Finance

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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