MidCap Financial Investment (NASDAQ:MFIC) Hits New 1-Year Low - Time to Sell?

Key Points

• MFIC fell to a new 52-week low of $8.31, with the stock last trading near $8.38. Its 50-day and 200-day moving averages stood at $9.25 and $10.14, respectively.
• Analyst sentiment is mostly neutral: six analysts rate the stock “Hold,” one rates it “Buy,” and one rates it “Sell.” The consensus price target is $10.71, despite several recent target-price reductions.
• MFIC reported quarterly EPS of $0.40, exceeding the $0.37 consensus estimate, and maintains a quarterly dividend of $0.31 per share, equivalent to a 14.8% annualized yield.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) hit a new 52-week low during trading on Wednesday. The stock traded as low as $8.31 and last traded at $8.38, with a volume of 55,272 shares traded. The stock had previously closed at $8.42.

Wall Street Analysts Forecast Growth

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

MidCap Financial Investment Price Performance

The stock has a market capitalization of $691.50 million, a PE ratio of -23.32 and a beta of 0.62. The company has a debt-to-equity ratio of 1.58, a current ratio of 3.78 and a quick ratio of 3.78. The firm's 50 day simple moving average is $9.25 and its 200 day simple moving average is $10.14.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.03. The company had revenue of ($9.12) million during the quarter, compared to analysts' expectations of $67.80 million. MidCap Financial Investment had a negative net margin of 9.85% and a positive return on equity of 11.17%. As a group, equities analysts forecast that MidCap Financial Investment Corporation will post 1.49 EPS for the current fiscal year.

MidCap Financial Investment Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Tuesday, September 8th were paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 14.8%. The ex-dividend date of this dividend was Tuesday, September 8th. MidCap Financial Investment's dividend payout ratio (DPR) is -344.44%.

Institutional Investors Weigh In On MidCap Financial Investment

A number of hedge funds and other institutional investors have recently modified their holdings of MFIC. Wellington Management Group LLP bought a new stake in MidCap Financial Investment during the 2nd quarter valued at $10,869,000. Next Capital Management LLC boosted its holdings in shares of MidCap Financial Investment by 26.1% during the first quarter. Next Capital Management LLC now owns 1,871,652 shares of the company's stock worth $21,037,000 after purchasing an additional 387,303 shares during the period. Y Intercept Hong Kong Ltd purchased a new position in MidCap Financial Investment during the 2nd quarter valued at about $995,000. Alpine Global Management LLC raised its position in MidCap Financial Investment by 138.6% during the 4th quarter. Alpine Global Management LLC now owns 316,086 shares of the company's stock valued at $3,616,000 after purchasing an additional 183,586 shares during the last quarter. Finally, Millennium Capital Advisors LLC raised its position in MidCap Financial Investment by 8.0% during the 1st quarter. Millennium Capital Advisors LLC now owns 61,823 shares of the company's stock valued at $695,000 after purchasing an additional 4,600 shares during the last quarter. Institutional investors own 28.45% of the company's stock.

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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