Steven Klinsky Buys 237,873 Shares of New Mountain Finance (NASDAQ:NMFC) Stock

New Mountain Finance Corporation (NASDAQ:NMFC) Director Steven Klinsky acquired 237,873 shares of the stock in a transaction dated Thursday, March 5th. The shares were purchased at an average price of $8.10 per share, for a total transaction of $1,926,771.30. Following the completion of the purchase, the director directly owned 5,037,524 shares in the company, valued at $40,803,944.40. The trade was a 4.96% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website.

New Mountain Finance Stock Down 1.5%

Shares of NMFC stock opened at $7.98 on Friday. New Mountain Finance Corporation has a 52-week low of $7.52 and a 52-week high of $11.46. The stock has a market cap of $823.22 million, a price-to-earnings ratio of 53.20 and a beta of 0.59. The firm’s 50-day moving average is $8.62 and its 200-day moving average is $9.31. The company has a debt-to-equity ratio of 1.41, a quick ratio of 3.16 and a current ratio of 3.16.

New Mountain Finance Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid a $0.32 dividend. The ex-dividend date is Tuesday, March 17th. This represents a $1.28 annualized dividend and a yield of 16.0%. New Mountain Finance’s dividend payout ratio is currently 853.33%.

Hedge Funds Weigh In On New Mountain Finance

Several institutional investors and hedge funds have recently made changes to their positions in NMFC. LSV Asset Management increased its stake in shares of New Mountain Finance by 13.4% during the fourth quarter. LSV Asset Management now owns 2,986,718 shares of the company’s stock worth $27,508,000 after purchasing an additional 353,062 shares during the period. Van ECK Associates Corp boosted its stake in New Mountain Finance by 4.6% in the 3rd quarter. Van ECK Associates Corp now owns 2,589,798 shares of the company’s stock valued at $24,966,000 after purchasing an additional 115,004 shares during the period. JPMorgan Chase & Co. grew its holdings in New Mountain Finance by 27.8% in the 4th quarter. JPMorgan Chase & Co. now owns 2,038,662 shares of the company’s stock valued at $18,776,000 after buying an additional 443,016 shares in the last quarter. UBS Group AG increased its position in New Mountain Finance by 33.4% during the 4th quarter. UBS Group AG now owns 1,541,128 shares of the company’s stock worth $14,194,000 after buying an additional 385,891 shares during the period. Finally, Rivernorth Capital Management LLC bought a new position in New Mountain Finance during the 4th quarter worth $12,326,000. Institutional investors and hedge funds own 32.08% of the company’s stock.

Key Headlines Impacting New Mountain Finance

Here are the key news stories impacting New Mountain Finance this week:

• Positive Sentiment: Director Steven B. Klinsky completed multiple purchases in early March — roughly 675,000 shares bought across March 3–5, representing a multi‑million dollar accumulation. Large insider buys signal management confidence in the company’s outlook and can support the stock. InsiderTrades: Klinsky Acquires Shares
• Neutral Sentiment: The company declared a quarterly dividend of $0.32 (payable March 31; ex-dividend March 17), which provides a very high yield that may appeal to income investors but also requires scrutiny of sustainability. Detailed dividend and company profile available here. MarketBeat: NMFC Dividend & Profile
• Negative Sentiment: Analysts have been cutting targets and taking a more cautious stance: B. Riley lowered its target and other firms have trimmed price objectives, leaving a consensus “Reduce”/Hold tilt and a consensus target below recent highs. Analyst pessimism is a near-term headwind. MarketBeat: Analyst Notes on NMFC
• Negative Sentiment: Dividend sustainability is a major concern: the reported annualized dividend implies an extremely high payout ratio (reported ~853%), which investors often view as unsustainable for a BDC and can pressure the share price if cash flows or NAV come under stress. MarketBeat: Dividend & Payout Ratio
• Negative Sentiment: Independent research and bearish commentary (including a pessimistic forecast cited by B. Riley) add selling pressure and may explain the weaker intraday performance. AmericanBankingNews: B. Riley Forecast

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Wells Fargo & Company reduced their target price on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating for the company in a research note on Thursday, February 26th. Zacks Research cut New Mountain Finance from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a report on Thursday, January 22nd. Keefe, Bruyette & Woods reduced their price objective on shares of New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating for the company in a research report on Wednesday. Finally, B. Riley Financial dropped their price objective on shares of New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating on the stock in a research report on Tuesday, March 3rd. Five investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $9.25.

About New Mountain Finance

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.