New Mountain Finance (NASDAQ:NMFC) Trading Down 3.5% - Here's What Happened

Key Points

• New Mountain Finance Corporation's stock fell 3.5% to trade at $10.11, with average trading volume declining by 29% from its usual rate.
• Analysts have set price targets for NMFC, with Oppenheimer rating it as "market perform" at $11 and Bank of America lowering its target to $10.
• The company recently declared a quarterly dividend of $0.32, reflecting a yield of 12.9%, amidst a high payout ratio of 168.42%.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report)'s stock price fell 3.5% on Monday . The company traded as low as $9.97 and last traded at $10.11. 328,014 shares were traded during trading, a decline of 29% from the average session volume of 463,381 shares. The stock had previously closed at $10.47.

Analysts Set New Price Targets

A number of research firms have weighed in on NMFC. Oppenheimer set a $11.00 price target on shares of New Mountain Finance and gave the stock a "market perform" rating in a research note on Wednesday, August 6th. Bank of America reaffirmed an "underperform" rating and set a $10.00 price target (down previously from $11.75) on shares of New Mountain Finance in a research note on Monday. Four analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $10.60.

New Mountain Finance Stock Performance

The stock's 50 day moving average price is $10.51 and its 200 day moving average price is $10.51. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 1.35. The firm has a market cap of $1.06 billion, a PE ratio of 13.05 and a beta of 0.80.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last released its quarterly earnings data 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 analyst estimates of $84.57 million. During the same period last year, the company posted $0.36 earnings per share. As a group, equities analysts forecast that New Mountain Finance Corporation will post 1.39 earnings per share for the current fiscal year.

New Mountain Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th will be given a $0.32 dividend. The ex-dividend date of this dividend is Tuesday, September 16th. This represents a $1.28 annualized dividend and a yield of 12.9%. New Mountain Finance's dividend payout ratio (DPR) is 168.42%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Northern Trust Corp increased its stake in New Mountain Finance by 27.8% during the 4th quarter. Northern Trust Corp now owns 61,228 shares of the company's stock worth $689,000 after buying an additional 13,314 shares during the period. Jane Street Group LLC increased its stake in New Mountain Finance by 232.7% during the 4th quarter. Jane Street Group LLC now owns 104,285 shares of the company's stock worth $1,174,000 after buying an additional 72,944 shares during the period. BNP Paribas Financial Markets increased its stake in New Mountain Finance by 240.4% during the 4th quarter. BNP Paribas Financial Markets now owns 7,488 shares of the company's stock worth $84,000 after buying an additional 5,288 shares during the period. D. E. Shaw & Co. Inc. increased its stake in New Mountain Finance by 161.2% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 124,989 shares of the company's stock worth $1,407,000 after buying an additional 77,141 shares during the period. Finally, Focus Partners Wealth purchased a new stake in New Mountain Finance during the 4th quarter worth $236,000. 32.08% of the stock is owned by hedge funds and other 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.

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