MidCap Financial Investment (NASDAQ:MFIC) Shares Gap Down on Analyst Downgrade

MidCap Financial Investment Corporation (NASDAQ:MFIC) gapped down prior to trading on Tuesday after Keefe, Bruyette & Woods lowered their price target on the stock from $13.00 to $11.50. The stock had previously closed at $10.31, but opened at $9.90. Keefe, Bruyette & Woods currently has a market perform rating on the stock. MidCap Financial Investment shares last traded at $10.1750, with a volume of 373,493 shares.

Several other brokerages have also weighed in on MFIC. Compass Point reaffirmed a “neutral” rating and issued a $12.25 target price (down from $14.75) on shares of MidCap Financial Investment in a research report on Monday, November 10th. Truist Financial reduced their price target on shares of MidCap Financial Investment from $15.00 to $13.00 and set a “buy” rating for the company in a report on Wednesday, March 4th. Royal Bank Of Canada dropped their price objective on shares of MidCap Financial Investment from $13.00 to $11.00 and set a “sector perform” rating on the stock in a report on Thursday, March 5th. Zacks Research upgraded shares of MidCap Financial Investment from a “strong sell” rating to a “hold” rating in a research report on Thursday, December 11th. Finally, JPMorgan Chase & Co. reduced their target price on shares of MidCap Financial Investment from $12.00 to $11.50 and set a “neutral” rating for the company in a research note on Monday, November 10th. Two analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $11.75.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Alpine Global Management LLC raised its stake in shares of MidCap Financial Investment by 138.6% during the fourth quarter. Alpine Global Management LLC now owns 316,086 shares of the company’s stock valued at $3,616,000 after purchasing an additional 183,586 shares in the last quarter. Virtu Financial LLC grew its position in MidCap Financial Investment by 22.0% in the 4th quarter. Virtu Financial LLC now owns 26,960 shares of the company’s stock valued at $308,000 after buying an additional 4,856 shares in the last quarter. Invesco Ltd. grew its position in MidCap Financial Investment by 3.5% in the 4th quarter. Invesco Ltd. now owns 911,041 shares of the company’s stock valued at $10,422,000 after buying an additional 30,604 shares in the last quarter. Papamarkou Wellner Asset Management inc. acquired a new position in MidCap Financial Investment during the 4th quarter valued at about $194,000. Finally, XTX Topco Ltd bought a new stake in shares of MidCap Financial Investment during the 4th quarter worth about $1,548,000. 28.45% of the stock is owned by institutional investors and hedge funds.

MidCap Financial Investment Price Performance

The business’s 50-day simple moving average is $11.13 and its 200 day simple moving average is $11.74. The company has a market capitalization of $940.54 million, a P/E ratio of 15.45 and a beta of 0.78. The company has a current ratio of 6.65, a quick ratio of 6.65 and a debt-to-equity ratio of 1.53.

MidCap Financial Investment (NASDAQ:MFIC) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.02. MidCap Financial Investment had a net margin of 19.69% and a return on equity of 10.43%. The business had revenue of ($1.38) million during the quarter, compared to analysts’ expectations of $78.87 million. As a group, sell-side analysts anticipate that MidCap Financial Investment Corporation will post 1.73 EPS for the current year.

MidCap Financial Investment Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th will be given a dividend of $0.31 per share. The ex-dividend date is Tuesday, March 10th. This represents a $1.24 annualized dividend and a dividend yield of 12.2%. MidCap Financial Investment’s dividend payout ratio (DPR) is 230.30%.

MidCap Financial Investment Company Profile

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a business development company that provides financing solutions to middle-market companies across the United States. The firm specializes in direct lending and asset-based financing, offering a range of debt instruments designed to support working capital needs, equipment acquisitions, lease financing and corporate recapitalizations. Its focus on senior secured loans, unitranche structures and equipment financings positions it to serve clients in sectors such as manufacturing, healthcare, transportation and energy.

Through its lending platform, MidCap Financial Investment Corporation partners with privately held and sponsor-backed companies that typically generate annual revenues between $25 million and $500 million.