MidCap Financial Investment (NASDAQ:MFIC) Hits New 1-Year Low - Here's What Happened

Key Points

• MFIC shares fell to a new 52-week low, trading as low as $8.14 before last changing hands at $8.22, below the prior close of $8.34.
• Analysts generally remain cautious: the consensus rating is “Hold”, with an average price target of $10.71. Several firms lowered their targets, while Weiss Ratings downgraded the stock to “sell.”
• MidCap Financial Investment reported quarterly EPS of $0.40, beating estimates of $0.37, but posted negative net margin and revenue well below consensus. The company’s quarterly dividend of $0.31 implies a 15.1% annualized yield.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) shares reached a new 52-week low during trading on Tuesday. The stock traded as low as $8.14 and last traded at $8.22, with a volume of 520,517 shares. The stock had previously closed at $8.34.

Analyst Ratings Changes

Several brokerages have weighed in on MFIC. Truist Financial cut their price target on MidCap Financial Investment from $13.00 to $12.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Royal Bank Of Canada decreased their price objective on MidCap Financial Investment from $11.00 to $10.00 and set a "sector perform" rating for the company in a research note on Wednesday, August 12th. JPMorgan Chase & Co. decreased their price objective on MidCap Financial Investment from $10.00 to $9.50 and set a "neutral" rating for the company in a research note on Thursday, July 2nd. Weiss Ratings downgraded MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. Finally, Wells Fargo & Company cut their target price on shares of MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating on the stock in a research note on Monday, August 10th. One research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $10.71.

MidCap Financial Investment Price Performance

The firm has a market capitalization of $677.08 million, a price-to-earnings ratio of 5.38 and a beta of 0.62. The stock's fifty day moving average price is $9.14 and its two-hundred day moving average price is $10.06. The company has a current ratio of 3.78, a quick ratio of 3.78 and a debt-to-equity ratio of 1.58.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.03. The firm had revenue of ($9.12) million during the quarter, compared to the consensus estimate of $67.80 million. MidCap Financial Investment had a negative net margin of 9.85% and a positive return on equity of 11.17%. Equities research analysts expect that MidCap Financial Investment Corporation will post 1.49 EPS for the current year.

MidCap Financial Investment Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Tuesday, September 8th were issued a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a yield of 15.1%. The ex-dividend date of this dividend was Tuesday, September 8th. MidCap Financial Investment's payout ratio is -344.44%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Next Capital Management LLC boosted its holdings in MidCap Financial Investment by 26.1% in the first quarter. Next Capital Management LLC now owns 1,871,652 shares of the company's stock valued at $21,037,000 after purchasing an additional 387,303 shares in the last quarter. Wellington Management Group LLP acquired a new stake in MidCap Financial Investment during the second quarter worth approximately $10,869,000. D.A. Davidson & CO. raised its holdings in MidCap Financial Investment by 3.1% during the first quarter. D.A. Davidson & CO. now owns 360,807 shares of the company's stock worth $4,055,000 after purchasing an additional 10,736 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S raised its holdings in MidCap Financial Investment by 3.3% during the first quarter. BI Asset Management Fondsmaeglerselskab A S now owns 249,306 shares of the company's stock worth $2,802,000 after purchasing an additional 7,942 shares in the last quarter. Finally, Lansforsakringar Fondforvaltning AB publ raised its holdings in MidCap Financial Investment by 22.1% during the first quarter. Lansforsakringar Fondforvaltning AB publ now owns 145,576 shares of the company's stock worth $1,636,000 after purchasing an additional 26,362 shares in the last quarter. 28.45% of the stock is owned by institutional investors and hedge funds.

MidCap Financial Investment Company Profile

MidCap Financial Investment Corporation NASDAQ: MFIC is a business development company that provides financing to middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation by investing primarily in privately negotiated debt securities and, selectively, equity investments.

Its investments generally include senior secured, first-lien and unitranche loans, as well as second-lien loans, subordinated debt and equity interests. MidCap Financial Investment typically works with companies across a range of industries and emphasizes businesses with established operations, recurring cash flow and experienced management teams.

The company invests primarily in the United States and operates as a regulated business development company under the Investment Company Act of 1940.

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