New Mountain Finance (NASDAQ:NMFC) Shares Gap Down - Here's What Happened

Key Points

• New Mountain Finance shares fell 3%: NMFC gapped down from $7.22 to $6.93 and last traded near $6.98, below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: Wells Fargo and Keefe, Bruyette & Woods reduced their price targets, while the stock carries a consensus “Reduce” rating and an average target of $8.25.
• Dividend yield is high despite weak earnings metrics: The company reported quarterly EPS of $0.26, but revenue of $39.02 million missed expectations. Its $0.25 quarterly dividend implies a 14.3% annualized yield, though the payout ratio is negative.

New Mountain Finance Corporation (NASDAQ:NMFC - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $7.22, but opened at $6.93. New Mountain Finance shares last traded at $6.9840, with a volume of 40,556 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on NMFC shares. Wells Fargo & Company decreased their price objective on New Mountain Finance from $8.00 to $7.50 and set an "equal weight" rating on the stock in a research report on Wednesday, August 5th. Keefe, Bruyette & Woods dropped their target price on New Mountain Finance from $9.00 to $8.00 and set a "market perform" rating for the company in a report on Monday, July 20th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of New Mountain Finance in a report on Thursday, August 13th. Four investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, New Mountain Finance currently has an average rating of "Reduce" and an average target price of $8.25.

New Mountain Finance Trading Down 3.0%

The company's 50 day simple moving average is $7.32 and its 200-day simple moving average is $7.67. The firm has a market cap of $661.62 million, a P/E ratio of -14.93 and a beta of 0.57. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 1.30.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported $0.26 EPS for the quarter, meeting analysts' consensus estimates of $0.26. New Mountain Finance had a positive return on equity of 10.94% and a negative net margin of 16.78%.The firm had revenue of $39.02 million for the quarter, compared to analysts' expectations of $62.78 million. During the same quarter in the prior year, the firm posted $0.32 earnings per share. As a group, research analysts predict that New Mountain Finance Corporation will post 1.1 earnings per share for the current fiscal year.

New Mountain Finance Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid a $0.25 dividend. The ex-dividend date is Wednesday, September 16th. This represents a $1.00 dividend on an annualized basis and a yield of 14.3%. New Mountain Finance's dividend payout ratio (DPR) is presently -212.77%.

Institutional Trading of New Mountain Finance

Institutional investors and hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC purchased a new position in New Mountain Finance in the 2nd quarter worth about $27,000. State of Wyoming purchased a new stake in New Mountain Finance in the 1st quarter valued at about $71,000. Catalyst Capital Advisors LLC purchased a new stake in New Mountain Finance in the 1st quarter valued at about $93,000. SG Americas Securities LLC bought a new position in New Mountain Finance in the 1st quarter worth about $122,000. Finally, Calton & Associates Inc. bought a new position in New Mountain Finance in the 4th quarter worth about $125,000. 32.08% of the stock is currently owned by institutional investors.

About New Mountain Finance

New Mountain Finance Corporation NASDAQ: NMFC is a business development company that provides financing to middle-market businesses. The company invests primarily in debt securities, including senior secured loans, unitranche loans and subordinated debt, and may also make equity investments. Its investments are generally structured to support acquisitions, recapitalizations, refinancings, growth initiatives and other corporate activities.

New Mountain Finance focuses on companies operating in defensive growth industries, such as business services, healthcare, software and technology, and other sectors it believes have resilient demand and favorable long-term trends.

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