Zacks Investment Research Downgrades New Mountain Finance (NMFC) to Hold

New Mountain Finance (NYSE:NMFC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

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. “

Other equities analysts have also issued research reports about the stock. ValuEngine raised shares of New Mountain Finance from a “sell” rating to a “hold” rating in a report on Tuesday, September 18th. TheStreet lowered shares of New Mountain Finance from a “b-” rating to a “c” rating in a report on Friday, November 9th. Finally, Wells Fargo & Co reduced their target price on shares of New Mountain Finance from $15.00 to $14.00 and set an “outperform” rating on the stock in a report on Thursday, October 4th. Three analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $14.67.



Shares of NYSE:NMFC opened at $13.35 on Friday. The firm has a market capitalization of $1.00 billion, a PE ratio of 10.35 and a beta of 0.53. New Mountain Finance has a one year low of $12.05 and a one year high of $14.30. The company has a debt-to-equity ratio of 1.31, a quick ratio of 1.65 and a current ratio of 1.65.

New Mountain Finance (NYSE:NMFC) last issued its quarterly earnings results on Wednesday, November 7th. The investment management company reported $0.32 EPS for the quarter, missing the Zacks’ consensus estimate of $0.35 by ($0.03). The company had revenue of $60.47 million during the quarter, compared to the consensus estimate of $55.38 million. New Mountain Finance had a return on equity of 10.18% and a net margin of 45.47%. Research analysts expect that New Mountain Finance will post 1.38 EPS for the current fiscal year.

In other news, CEO Robert Hamwee purchased 15,000 shares of the company’s stock in a transaction on Thursday, December 13th. The stock was acquired at an average price of $12.88 per share, with a total value of $193,200.00. Following the transaction, the chief executive officer now directly owns 347,591 shares of the company’s stock, valued at approximately $4,476,972.08. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Adam Weinstein purchased 16,700 shares of the company’s stock in a transaction on Monday, December 10th. The shares were purchased at an average cost of $13.22 per share, with a total value of $220,774.00. Following the transaction, the chief accounting officer now directly owns 114,721 shares in the company, valued at $1,516,611.62. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 233,304 shares of company stock worth $2,943,143. 10.27% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in NMFC. Brown Advisory Inc. purchased a new stake in New Mountain Finance during the 3rd quarter valued at $154,000. Tocqueville Asset Management L.P. purchased a new stake in New Mountain Finance during the 2nd quarter valued at $162,000. AJ Wealth Strategies LLC purchased a new stake in New Mountain Finance during the 3rd quarter valued at $180,000. GSA Capital Partners LLP purchased a new stake in shares of New Mountain Finance in the 2nd quarter worth about $270,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of New Mountain Finance in the 3rd quarter worth about $271,000. 36.19% 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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