Zacks Investment Research Downgrades New Mountain Finance (NYSE:NMFC) to Sell

Zacks Investment Research cut shares of New Mountain Finance (NYSE:NMFC) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning, Zacks.com reports.

According to Zacks, “New Mountain Finance Corporation is a Business Development Company specializing in investments in middle market companies and debt securities at various levels of the capital structure, including first and second lien debt, unsecured notes, bonds, and mezzanine securities. It invests in various industries that include software, education, business services, distribution and logistics, federal services, healthcare services and products, healthcare facilities, energy, media, consumer and industrial services, healthcare Information Technology, Information Technology and services, specialty chemicals and materials, telecommunication, retail, and power generation. It seeks to invest in United States. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. “

Separately, ValuEngine cut New Mountain Finance from a hold rating to a sell rating in a report on Saturday, September 14th.

Shares of NYSE NMFC opened at $13.52 on Tuesday. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 1.47. The stock has a market capitalization of $1.18 billion, a price-to-earnings ratio of 9.80 and a beta of 0.53. The stock’s fifty day simple moving average is $13.50 and its 200 day simple moving average is $13.78. New Mountain Finance has a 52-week low of $12.06 and a 52-week high of $14.38.

New Mountain Finance (NYSE:NMFC) last issued its earnings results on Wednesday, August 7th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.35. The business had revenue of $66.47 million for the quarter, compared to analysts’ expectations of $64.98 million. New Mountain Finance had a return on equity of 10.47% and a net margin of 36.54%. As a group, analysts anticipate that New Mountain Finance will post 1.39 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Friday, September 27th. Investors of record on Friday, September 13th were issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 10.06%. The ex-dividend date of this dividend was Thursday, September 12th. New Mountain Finance’s payout ratio is 98.55%.

In other New Mountain Finance news, CFO Shiraz Kajee bought 2,500 shares of the firm’s stock in a transaction dated Monday, August 12th. The stock was acquired at an average price of $13.38 per share, with a total value of $33,450.00. Following the completion of the transaction, the chief financial officer now directly owns 7,500 shares in the company, valued at approximately $100,350. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Adam Weinstein bought 9,350 shares of the firm’s stock in a transaction dated Monday, August 12th. The stock was acquired at an average cost of $13.34 per share, with a total value of $124,729.00. The disclosure for this purchase can be found here. Insiders purchased a total of 22,200 shares of company stock worth $297,792 over the last 90 days. Insiders own 10.27% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. Lenox Wealth Advisors LLC acquired a new stake in shares of New Mountain Finance in the third quarter worth $26,000. Atria Investments LLC acquired a new stake in shares of New Mountain Finance in the second quarter worth $389,000. Royal Bank of Canada boosted its position in shares of New Mountain Finance by 0.4% in the second quarter. Royal Bank of Canada now owns 316,944 shares of the investment management company’s stock worth $4,427,000 after buying an additional 1,341 shares during the period. UBS Group AG boosted its position in shares of New Mountain Finance by 5.1% in the second quarter. UBS Group AG now owns 707,839 shares of the investment management company’s stock worth $9,889,000 after buying an additional 34,210 shares during the period. Finally, Ladenburg Thalmann Financial Services Inc. boosted its position in shares of New Mountain Finance by 2.9% in the second quarter. Ladenburg Thalmann Financial Services Inc. now owns 33,771 shares of the investment management company’s stock worth $471,000 after buying an additional 940 shares during the period. 34.66% of the stock is owned by institutional investors and hedge funds.

New Mountain Finance Company Profile

New Mountain Finance Corporation is a Business Development Company specializing in investments in middle market companies and debt securities at various levels of the capital structure, including first and second lien debt, unsecured notes, bonds, and mezzanine securities. It invests in various industries that include software, education, business services, distribution and logistics, federal services, healthcare services and products, healthcare facilities, energy, media, consumer and industrial services, healthcare Information Technology, Information Technology and services, specialty chemicals and materials, telecommunication, retail, and power generation.

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