New Mountain Finance (NASDAQ:NMFC) Sets New 52-Week Low – Time to Sell?

New Mountain Finance Corporation (NASDAQ:NMFC)’s share price reached a new 52-week low during trading on Friday . The company traded as low as $7.48 and last traded at $7.5150, with a volume of 201902 shares traded. The stock had previously closed at $7.65.

Analyst Ratings Changes

Several analysts have weighed in on NMFC shares. Keefe, Bruyette & Woods lowered their target price on shares of New Mountain Finance from $10.00 to $9.00 and set a “market perform” rating for the company in a research note on Wednesday, March 4th. Wall Street Zen downgraded shares of New Mountain Finance from a “hold” rating to a “sell” rating in a research report on Saturday. Zacks Research lowered shares of New Mountain Finance from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of New Mountain Finance in a research report on Thursday, January 22nd. 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 note on Tuesday, March 3rd. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $9.25.

New Mountain Finance Stock Down 2.0%

The company has a market cap of $773.70 million, a price-to-earnings ratio of 50.00 and a beta of 0.59. The stock has a 50-day simple moving average of $8.20 and a 200-day simple moving average of $9.03. The company has a current ratio of 3.16, a quick ratio of 3.16 and a debt-to-equity ratio of 1.41.

New Mountain Finance Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 17.1%. The ex-dividend date is Tuesday, March 17th. New Mountain Finance’s payout ratio is 853.33%.

Insider Activity

In related news, COO Laura C. Holson Boswerger acquired 12,500 shares of the stock in a transaction that occurred on Friday, February 27th. The shares were acquired at an average price of $7.74 per share, for a total transaction of $96,750.00. Following the completion of the purchase, the chief operating officer directly owned 81,030 shares of the company’s stock, valued at $627,172.20. The trade was a 18.24% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Adam B. Weinstein bought 12,900 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were purchased at an average cost of $7.61 per share, for a total transaction of $98,169.00. Following the acquisition, the executive vice president owned 751,756 shares of the company’s stock, valued at $5,720,863.16. This represents a 1.75% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased 1,200,673 shares of company stock worth $9,662,634 over the last three months. Corporate insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Millennium Management LLC boosted its position in shares of New Mountain Finance by 36.9% during the 1st quarter. Millennium Management LLC now owns 711,050 shares of the company’s stock valued at $7,843,000 after purchasing an additional 191,518 shares in the last quarter. Cetera Investment Advisers lifted its stake in New Mountain Finance by 45.6% during the second quarter. Cetera Investment Advisers now owns 35,164 shares of the company’s stock valued at $371,000 after purchasing an additional 11,018 shares during the last quarter. Franklin Resources Inc. boosted its holdings in New Mountain Finance by 18.1% during the second quarter. Franklin Resources Inc. now owns 643,433 shares of the company’s stock worth $6,788,000 after buying an additional 98,603 shares in the last quarter. XTX Topco Ltd acquired a new position in New Mountain Finance in the second quarter worth approximately $172,000. Finally, Lido Advisors LLC increased its holdings in shares of New Mountain Finance by 38.0% in the second quarter. Lido Advisors LLC now owns 33,240 shares of the company’s stock valued at $351,000 after buying an additional 9,159 shares in the last quarter. 32.08% of the stock is owned by institutional investors and hedge funds.

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.