New Mountain Finance (NASDAQ:NMFC) Sees Strong Trading Volume – What’s Next?

New Mountain Finance Corporation (NASDAQ:NMFC) saw unusually-strong trading volume on Friday . Approximately 1,677,272 shares were traded during mid-day trading, an increase of 207% from the previous session’s volume of 546,327 shares.The stock last traded at $9.0550 and had previously closed at $9.12.

Analyst Upgrades and Downgrades

NMFC has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a report on Wednesday, October 8th. Bank of America restated an “underperform” rating and issued a $10.00 target price (down previously from $11.75) on shares of New Mountain Finance in a report on Monday, September 15th. Keefe, Bruyette & Woods cut their price target on shares of New Mountain Finance from $11.00 to $10.00 and set a “market perform” rating on the stock in a research note on Wednesday, November 5th. Zacks Research raised shares of New Mountain Finance from a “strong sell” rating to a “hold” rating in a research report on Monday, November 24th. Finally, B. Riley reaffirmed a “neutral” rating and set a $10.00 price objective (down previously from $11.00) on shares of New Mountain Finance in a report on Wednesday, November 5th. Six investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, New Mountain Finance presently has a consensus rating of “Reduce” and a consensus target price of $10.17.

New Mountain Finance Stock Down 1.3%

The business’s fifty day moving average price is $9.50 and its 200 day moving average price is $10.05. The firm has a market capitalization of $928.82 million, a price-to-earnings ratio of 13.85 and a beta of 0.57. The company has a current ratio of 1.99, a quick ratio of 1.99 and a debt-to-equity ratio of 1.40.

New Mountain Finance (NASDAQ:NMFC) last issued its quarterly earnings data on Monday, November 3rd. The company reported $0.32 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.32. New Mountain Finance had a net margin of 20.84% and a return on equity of 10.42%. The company had revenue of $80.53 million for the quarter, compared to the consensus estimate of $83.91 million. During the same period last year, the firm posted $0.34 EPS. New Mountain Finance’s revenue for the quarter was down 15.5% on a year-over-year basis. On average, equities analysts expect that New Mountain Finance Corporation will post 1.39 EPS for the current year.

New Mountain Finance Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Wednesday, December 17th will be paid a dividend of $0.32 per share. The ex-dividend date of this dividend is Wednesday, December 17th. This represents a $1.28 annualized dividend and a yield of 14.2%. New Mountain Finance’s dividend payout ratio is currently 196.92%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. CIBC Bancorp USA Inc. acquired a new position in shares of New Mountain Finance in the third quarter valued at approximately $208,000. Advisory Services Network LLC purchased a new position in New Mountain Finance in the 3rd quarter valued at $65,000. CANADA LIFE ASSURANCE Co increased its stake in New Mountain Finance by 19.1% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 114,062 shares of the company’s stock valued at $1,100,000 after buying an additional 18,257 shares during the period. United Capital Financial Advisors LLC purchased a new position in New Mountain Finance during the 3rd quarter worth $97,000. Finally, Brevan Howard Capital Management LP purchased a new position in New Mountain Finance during the 3rd quarter worth $437,000. 32.08% of the stock is currently owned by hedge funds and other institutional investors.

New Mountain Finance Company Profile

New Mountain Finance Corp. is a closed-end, externally managed business development company (BDC) that provides customized debt and equity capital solutions to U.S. middle-market companies. As a BDC organized under the Investment Company Act of 1940, New Mountain Finance invests in sponsor-backed and founder-led businesses that span a range of industry sectors, with a focus on companies demonstrating resilient growth and recurring revenue streams.

The company’s investment portfolio typically includes first-lien senior secured loans, second-lien and junior debt instruments, mezzanine financing and equity co-investments.