Zacks Investment Research Lowers 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 report published on Wednesday, 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. “

New Mountain Finance stock opened at $13.74 on Wednesday. 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 company has a market capitalization of $1.17 billion, a P/E ratio of 9.96 and a beta of 0.55. The stock’s 50 day moving average is $13.73 and its 200 day moving average is $13.84. New Mountain Finance has a twelve month low of $12.06 and a twelve month high of $14.38.



The firm also recently announced a quarterly dividend, which will be paid on Friday, September 27th. Shareholders of record on Friday, September 13th will be paid a dividend of $0.34 per share. The ex-dividend date is Thursday, September 12th. This represents a $1.36 annualized dividend and a yield of 9.90%. New Mountain Finance’s dividend payout ratio is 98.55%.

In other news, CFO Shiraz Kajee purchased 2,500 shares of the stock in a transaction dated Monday, August 12th. The shares were purchased at an average cost of $13.38 per share, with a total value of $33,450.00. Following the acquisition, the chief financial officer now directly owns 7,500 shares of the company’s stock, valued at $100,350. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Adam Weinstein purchased 9,350 shares of the stock in a transaction dated Monday, August 12th. The shares were purchased at an average cost of $13.34 per share, for a total transaction of $124,729.00. The disclosure for this purchase can be found here. Over the last quarter, insiders have acquired 14,700 shares of company stock worth $196,392. Company insiders own 10.27% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. LSV Asset Management lifted its holdings in shares of New Mountain Finance by 12.5% during the 1st quarter. LSV Asset Management now owns 2,323,600 shares of the investment management company’s stock valued at $31,531,000 after buying an additional 258,429 shares during the period. Dimension Capital Management LLC lifted its holdings in shares of New Mountain Finance by 43.4% during the 2nd quarter. Dimension Capital Management LLC now owns 1,570,752 shares of the investment management company’s stock valued at $21,947,000 after buying an additional 475,629 shares during the period. Round Table Services LLC lifted its holdings in shares of New Mountain Finance by 4.9% during the 2nd quarter. Round Table Services LLC now owns 1,533,784 shares of the investment management company’s stock valued at $21,427,000 after buying an additional 71,950 shares during the period. Confluence Investment Management LLC lifted its holdings in shares of New Mountain Finance by 0.7% during the 1st quarter. Confluence Investment Management LLC now owns 924,957 shares of the investment management company’s stock valued at $12,552,000 after buying an additional 6,603 shares during the period. Finally, Bank of Montreal Can lifted its holdings in shares of New Mountain Finance by 5.2% during the 2nd quarter. Bank of Montreal Can now owns 794,000 shares of the investment management company’s stock valued at $11,092,000 after buying an additional 39,000 shares during the period. 33.33% of the stock is currently owned by hedge funds and other institutional investors.

About New Mountain Finance

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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