MidCap Financial Investment (NASDAQ:MFIC) Sets New 12-Month Low - Time to Sell?

Key Points

• MidCap Financial Investment fell to a new 52-week low of $8.60, below its 50-day and 200-day moving averages, signaling continued share-price weakness.
• Analyst sentiment is broadly cautious: the stock has a consensus “Hold” rating and an average price target of $11.11, although Truist maintained a Buy rating while several firms cut their targets.
• The company reported quarterly EPS of $0.40, exceeding estimates, and paid a $0.31 quarterly dividend. Its annualized dividend yield is approximately 14.4%, but the payout ratio remains deeply negative.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) hit a new 52-week low on Monday. The company traded as low as $8.60 and last traded at $8.6340, with a volume of 231 shares changing hands. The stock had previously closed at $8.62.

Analyst Ratings Changes

A number of brokerages have recently weighed in on MFIC. Truist Financial lowered their price objective on shares of MidCap Financial Investment from $13.00 to $12.00 and set a "buy" rating for the company in a report on Friday, August 7th. Weiss Ratings lowered shares of MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. Royal Bank Of Canada decreased their target price on shares of MidCap Financial Investment from $11.00 to $10.00 and set a "sector perform" rating on the stock in a research report on Wednesday, August 12th. Wells Fargo & Company lowered their price target on shares of MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating for the company in a research note on Monday, August 10th. Finally, JPMorgan Chase & Co. reduced their price objective 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. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, MidCap Financial Investment presently has an average rating of "Hold" and a consensus price target of $11.11.

MidCap Financial Investment Stock Performance

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 stock has a market cap of $710.11 million, a PE ratio of -23.96 and a beta of 0.62. The business has a 50 day moving average price of $9.42 and a two-hundred day moving average price of $10.26.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.40 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 analyst estimates 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 research analysts forecast that MidCap Financial Investment Corporation will post 1.49 EPS for the current fiscal year.

MidCap Financial Investment Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Investors 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 14.4%. The ex-dividend date was Tuesday, September 8th. MidCap Financial Investment's payout ratio is currently -344.44%.

Institutional Trading of MidCap Financial Investment

Large investors have recently added to or reduced their stakes in the stock. LB Partners LLC bought a new stake in shares of MidCap Financial Investment during the 1st quarter valued at about $112,000. Fifth Third Bancorp bought a new stake in shares of MidCap Financial Investment in the 1st quarter worth $119,000. World Investment Advisors purchased a new position in MidCap Financial Investment in the 4th quarter worth about $150,000. Empowered Funds LLC bought a new position in MidCap Financial Investment during the first quarter valued at approximately $158,000. Finally, Entropy Technologies LP bought a new stake in shares of MidCap Financial Investment during the 1st quarter valued at $160,000. 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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