MidCap Financial Investment (NASDAQ:MFIC) Share Price Breaks Below 200 Day Moving Average - Here's Why

Key Points

• MFIC fell below its 200-day moving average, trading at $10.18 versus the $10.21 average.
• The company reported a quarterly loss of $0.20 per share, missing the $0.36 consensus estimate, and revenue of $61.98 million also came in below forecasts.
• Analyst sentiment is cautious: the consensus rating is “Reduce” with a $10.25 target price. MFIC also declared a $0.31 quarterly dividend, equivalent to a 12.2% annualized yield.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report) passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $10.21 and traded as low as $10.17. MidCap Financial Investment shares last traded at $10.18, with a volume of 476,311 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on MFIC shares. Wells Fargo & Company reduced 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. Royal Bank Of Canada boosted their price target on shares of MidCap Financial Investment from $10.00 to $11.00 and gave the stock a "sector perform" rating in a research note on Tuesday. Weiss Ratings restated a "sell (d+)" rating on shares of MidCap Financial Investment in a report on Wednesday, November 4th. Raymond James Financial cut shares of MidCap Financial Investment from an "outperform" rating to a "market perform" rating in a research note on Wednesday, October 28th. Finally, Truist Financial cut shares of MidCap Financial Investment from a "buy" rating to a "hold" rating and reduced their price objective for the company from $12.00 to $11.00 in a research note on Monday, November 2nd. Seven equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $10.25.

MidCap Financial Investment Price Performance

The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.78 and a current ratio of 5.47. The company has a market capitalization of $838.53 million, a price-to-earnings ratio of -11.98 and a beta of 0.59. The company has a 50-day moving average price of $9.15 and a 200-day moving average price of $10.21.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.56). MidCap Financial Investment had a positive return on equity of 11.25% and a negative net margin of 26.23%. The business had revenue of $61.98 million during the quarter, compared to the consensus estimate of $64.43 million. On average, equities research analysts expect that MidCap Financial Investment Corporation will post 1.48 EPS for the current fiscal year.

MidCap Financial Investment Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 22nd. Shareholders of record on Tuesday, December 8th will be given a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 12.2%. The ex-dividend date of this dividend is Tuesday, December 8th. MidCap Financial Investment's dividend payout ratio is -145.88%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MFIC. Stiles Financial Services Inc bought a new stake in shares of MidCap Financial Investment in the 3rd quarter valued at about $91,000. Fifth Third Bancorp bought a new position in MidCap Financial Investment during the first quarter worth about $119,000. Empowered Funds LLC acquired a new position in MidCap Financial Investment during the first quarter worth approximately $158,000. Kestra Advisory Services LLC acquired a new position in MidCap Financial Investment during the third quarter worth approximately $158,000. Finally, Entropy Technologies LP acquired a new position in MidCap Financial Investment during the first quarter worth approximately $160,000. 28.45% of the stock is currently owned by institutional investors and hedge funds.

About MidCap Financial Investment

MidCap Financial Investment Corporation is a business development company that provides financing to middle-market companies. Its investments are primarily in privately held businesses and may include senior secured loans, unitranche and other subordinated debt, and, to a lesser extent, equity securities. The company focuses mainly on lending to businesses in the United States across a range of industries. Its financing can support acquisitions, refinancings, growth initiatives, and other corporate needs.

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