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

Key Points

• MFIC fell to a new 52-week low of $9.23, trading down 3.4% with its price below both the 50-day and 200-day moving averages.
• Analyst sentiment is largely cautious: the consensus rating is “Hold”, with an average price target of $11.11, while several firms recently lowered their targets and Weiss Ratings downgraded the stock to “Sell.”
• The company reported quarterly EPS of $0.40, exceeding estimates, but posted negative net margins and a revenue figure well below expectations. MFIC continues to offer a $0.31 quarterly dividend, representing a high indicated yield of about 13.3%.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report)'s stock price hit a new 52-week low during trading on Tuesday . The stock traded as low as $9.23 and last traded at $9.2550, with a volume of 123863 shares changing hands. The stock had previously closed at $9.62.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Royal Bank Of Canada lowered 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 report on Wednesday, August 12th. Wells Fargo & Company reduced their price target on shares of 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. Weiss Ratings cut shares of MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Truist Financial dropped 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. Finally, JPMorgan Chase & Co. cut their target price on shares of 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. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, MidCap Financial Investment currently has a consensus rating of "Hold" and an average target price of $11.11.

MidCap Financial Investment Trading Down 3.4%

The company's 50-day moving average is $9.74 and its 200-day moving average is $10.47. The firm has a market cap of $765.38 million, a price-to-earnings ratio of -25.82 and a beta of 0.61. The company has a debt-to-equity ratio of 1.58, a quick ratio of 3.78 and a current ratio of 3.78.

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

MidCap Financial Investment Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Tuesday, September 8th will be given a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 13.3%. The ex-dividend date is Tuesday, September 8th. MidCap Financial Investment's payout ratio is -344.44%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Advocate Investing Services LLC bought a new stake in shares of MidCap Financial Investment during the fourth quarter worth $36,000. BNP Paribas Financial Markets acquired a new stake in MidCap Financial Investment in the third quarter worth about $55,000. Kestra Advisory Services LLC bought a new stake in MidCap Financial Investment during the 4th quarter worth about $109,000. Tower Research Capital LLC TRC boosted its stake in shares of MidCap Financial Investment by 20,580.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,513 shares of the company's stock valued at $120,000 after purchasing an additional 9,467 shares during the last quarter. Finally, LB Partners LLC acquired a new stake in shares of MidCap Financial Investment during the 1st quarter worth approximately $112,000. 28.45% of the stock is currently owned by institutional investors.

MidCap Financial Investment Company Profile

MidCap Financial Investment Corporation NASDAQ: MFIC is a business development company that provides financing solutions to middle-market companies across the United States. The firm specializes in direct lending and asset-based financing, offering a range of debt instruments designed to support working capital needs, equipment acquisitions, lease financing and corporate recapitalizations. Its focus on senior secured loans, unitranche structures and equipment financings positions it to serve clients in sectors such as manufacturing, healthcare, transportation and energy.

Through its lending platform, MidCap Financial Investment Corporation partners with privately held and sponsor-backed companies that typically generate annual revenues between $25 million and $500 million.

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