MidCap Financial Investment (NASDAQ:MFIC) Reaches New 52-Week Low - Should You Sell?

Key Points

• MFIC shares fell to a new 52-week low of $8.72, below both the 50-day moving average of $9.48 and the 200-day average of $10.30.
• Analysts have generally reduced their price targets, leaving the stock with a consensus “Hold” rating and an average target of $11.11; ratings include two Buys, six Holds and one Sell.
• The company reported quarterly EPS of $0.40, above the $0.37 estimate, and paid a $0.31 quarterly dividend, equivalent to a high 14.2% annualized yield—though its negative payout ratio highlights financial strain.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) shares hit a new 52-week low on Tuesday. The company traded as low as $8.72 and last traded at $8.76, with a volume of 894287 shares changing hands. The stock had previously closed at $8.88.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Truist Financial dropped their target price on shares of MidCap Financial Investment from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Royal Bank Of Canada decreased their price target on shares of 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. Wells Fargo & Company lowered their price target on MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating for the company in a report on Monday, August 10th. Weiss Ratings cut MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Finally, JPMorgan Chase & Co. lowered their target price on MidCap Financial Investment from $10.00 to $9.50 and set a "neutral" rating for the company in a report on Thursday, July 2nd. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $11.11.

MidCap Financial Investment Stock Down 1.4%

The business's 50 day moving average is $9.48 and its 200 day moving average is $10.30. The company has a quick ratio of 3.78, a current ratio of 3.78 and a debt-to-equity ratio of 1.58. The company has a market cap of $721.56 million, a P/E ratio of -24.33 and a beta of 0.61.

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

MidCap Financial Investment Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Tuesday, September 8th were given a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 14.2%. The ex-dividend date of this dividend was Tuesday, September 8th. MidCap Financial Investment's dividend payout ratio is presently -344.44%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Cidel Asset Management Inc. purchased a new stake in MidCap Financial Investment during the second quarter valued at approximately $507,000. Camelot Portfolios LLC boosted its position in shares of MidCap Financial Investment by 8.6% in the 2nd quarter. Camelot Portfolios LLC now owns 62,646 shares of the company's stock worth $631,000 after purchasing an additional 4,961 shares in the last quarter. Headlands Technologies LLC grew its stake in MidCap Financial Investment by 304.1% during the 2nd quarter. Headlands Technologies LLC now owns 51,819 shares of the company's stock worth $522,000 after buying an additional 38,995 shares during the last quarter. Wellington Management Group LLP purchased a new position in MidCap Financial Investment during the 2nd quarter worth $10,869,000. Finally, Y Intercept Hong Kong Ltd acquired a new position in MidCap Financial Investment during the 2nd quarter valued at about $995,000. Institutional investors own 28.45% of the company's stock.

About MidCap Financial Investment

MidCap Financial Investment Corporation NASDAQ: MFIC is a non-diversified business development company that provides financing to privately held, middle-market companies. The company primarily invests in senior secured loans, including first-lien and unitranche facilities, and may also invest in subordinated debt and equity securities.

MFIC seeks to support companies across a range of industries and typically focuses on businesses with established operations and experienced management teams.

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