MidCap Financial Investment (NASDAQ:MFIC) Shares Gap Up - Time to Buy?

Key Points

• MFIC shares jumped 23.3%, opening at $10.20 versus a prior close of $8.36 and later trading near $10.30 on heavy volume.
• Analyst sentiment remains cautious: six analysts rate the stock Hold, one Buy, and one Sell, with an average price target of $10.54; several firms recently cut their targets.
• The company exceeded quarterly EPS expectations ($0.40 versus $0.37) and declared a $0.31 quarterly dividend, equivalent to a 12% annualized yield, though it reported negative net margin and a negative payout ratio.

MidCap Financial Investment Corporation (NASDAQ:MFIC - Get Free Report)'s stock price gapped up before the market opened on Tuesday. The stock had previously closed at $8.36, but opened at $10.20. MidCap Financial Investment shares last traded at $10.2960, with a volume of 1,354,807 shares.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on MFIC. JPMorgan Chase & Co. lowered their target price on MidCap Financial Investment from $10.00 to $9.50 and set a "neutral" rating on the stock in a research report on Thursday, July 2nd. Wells Fargo & Company dropped their target price on MidCap Financial Investment from $10.50 to $9.00 and set an "equal weight" rating on the stock in a report on Monday, August 10th. Royal Bank Of Canada reduced their price target on MidCap Financial Investment from $11.00 to $10.00 and set a "sector perform" rating for the company in a research report on Wednesday, August 12th. Raymond James Financial set a $9.50 price target on MidCap Financial Investment in a research note on Thursday. Finally, Weiss Ratings lowered MidCap Financial Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $10.54.

MidCap Financial Investment Trading Up 23.3%

The business's 50 day simple moving average is $9.03 and its 200 day simple moving average is $10.30. The stock has a market cap of $848.82 million, a price-to-earnings ratio of -28.65 and a beta of 0.62. The company has a quick ratio of 3.78, a current ratio of 3.78 and a debt-to-equity ratio of 1.58.

MidCap Financial Investment (NASDAQ:MFIC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of ($9.12) million for the quarter, compared to analyst estimates of $67.80 million. On average, research analysts expect that MidCap Financial Investment Corporation will post 1.49 EPS for the current fiscal year.

MidCap Financial Investment Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Tuesday, September 8th were given a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a dividend yield of 12.0%. The ex-dividend date of this dividend was Tuesday, September 8th. MidCap Financial Investment's dividend payout ratio (DPR) is presently -344.44%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Park Avenue Securities LLC lifted its holdings in MidCap Financial Investment by 54.4% during the 3rd quarter. Park Avenue Securities LLC now owns 20,579 shares of the company's stock valued at $180,000 after purchasing an additional 7,250 shares during the last quarter. Confluence Investment Management LLC increased its holdings in shares of MidCap Financial Investment by 6.7% in the third quarter. Confluence Investment Management LLC now owns 126,539 shares of the company's stock valued at $1,106,000 after purchasing an additional 7,988 shares during the last quarter. Cidel Asset Management Inc. acquired a new position in shares of MidCap Financial Investment in the second quarter valued at $507,000. Camelot Portfolios LLC increased its holdings in shares of MidCap Financial Investment by 8.6% in the second quarter. Camelot Portfolios LLC now owns 62,646 shares of the company's stock valued at $631,000 after purchasing an additional 4,961 shares during the last quarter. Finally, Headlands Technologies LLC raised its position in shares of MidCap Financial Investment by 304.1% in the second quarter. Headlands Technologies LLC now owns 51,819 shares of the company's stock valued at $522,000 after purchasing an additional 38,995 shares during the period. 28.45% of the stock is currently owned by institutional investors.

MidCap Financial Investment Company Profile

MidCap Financial Investment Corporation NASDAQ: MFIC is a closed-end, externally managed 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 in privately negotiated debt and equity securities.

MFIC primarily invests in senior secured loans, including first-lien and second-lien loans, as well as subordinated debt and other investments issued by companies across a range of industries.

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