Insider Buying: New Mountain Finance (NASDAQ:NMFC) Director Buys $1,988,930.30 in Stock

New Mountain Finance Corporation (NASDAQ:NMFC) Director Steven Klinsky purchased 250,495 shares of the business’s stock in a transaction dated Tuesday, March 3rd. The stock was bought at an average cost of $7.94 per share, with a total value of $1,988,930.30. Following the completion of the acquisition, the director owned 4,754,338 shares of the company’s stock, valued at approximately $37,749,443.72. The trade was a 5.56% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

New Mountain Finance Stock Down 1.5%

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

New Mountain Finance Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be given a dividend of $0.32 per share. The ex-dividend date is Tuesday, March 17th. This represents a $1.28 dividend on an annualized basis and a yield of 16.0%. New Mountain Finance’s dividend payout ratio (DPR) is 853.33%.

Hedge Funds Weigh In On New Mountain Finance

Hedge funds have recently made changes to their positions in the stock. MTM Investment Management LLC purchased a new stake in shares of New Mountain Finance during the 2nd quarter valued at $38,000. State of Alaska Department of Revenue purchased a new position in shares of New Mountain Finance in the 3rd quarter worth $47,000. Huntington National Bank boosted its holdings in New Mountain Finance by 311.8% in the second quarter. Huntington National Bank now owns 4,534 shares of the company’s stock valued at $48,000 after acquiring an additional 3,433 shares during the last quarter. US Bancorp DE acquired a new position in New Mountain Finance in the third quarter valued at $48,000. Finally, Advisory Services Network LLC purchased a new stake in New Mountain Finance during the third quarter valued at about $65,000. Institutional investors and hedge funds own 32.08% of the company’s stock.

Key New Mountain Finance News

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 Analyst Weigh In

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