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

Zacks Investment Research downgraded shares of New Mountain Finance (NYSE:NMFC) from a hold rating to a sell rating in a research note issued to investors on Friday 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. “

Shares of New Mountain Finance stock opened at $13.57 on Friday. The stock has a market capitalization of $1.18 billion, a P/E ratio of 9.83 and a beta of 0.54. 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 50 day moving average price of $13.55 and a two-hundred day moving average price of $13.78. New Mountain Finance has a 12-month low of $12.06 and a 12-month high of $14.38.



New Mountain Finance (NYSE:NMFC) last announced its earnings results on Wednesday, August 7th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.35. The firm had revenue of $66.47 million during 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%. Sell-side analysts anticipate that New Mountain Finance will post 1.39 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 27th. Stockholders of record on Friday, September 13th will be given a $0.34 dividend. The ex-dividend date is Thursday, September 12th. This represents a $1.36 annualized dividend and a dividend yield of 10.02%. New Mountain Finance’s dividend payout ratio is 98.55%.

In other New Mountain Finance news, CAO Adam Weinstein acquired 9,350 shares of New Mountain Finance stock in a transaction dated Monday, August 12th. The stock was bought at an average cost of $13.34 per share, with a total value of $124,729.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Shiraz Kajee acquired 2,500 shares of New Mountain Finance stock in a transaction dated Monday, August 12th. The stock was acquired at an average cost 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 of the company’s stock, valued at approximately $100,350. The disclosure for this purchase can be found here. Insiders bought 22,200 shares of company stock valued at $297,792 over the last three months. 10.46% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the company. Atria Investments LLC bought a new position in New Mountain Finance in the second quarter worth $389,000. Royal Bank of Canada lifted its position in 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 purchasing an additional 1,341 shares during the period. UBS Group AG lifted its position in 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 purchasing an additional 34,210 shares during the period. Ladenburg Thalmann Financial Services Inc. lifted its position in 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 purchasing an additional 940 shares during the period. Finally, Green Square Asset Management LLC bought a new position in New Mountain Finance in the second quarter worth $1,319,000. 34.66% of the stock is owned by institutional investors.

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.

See Also: Commodities

Get a free copy of the Zacks research report on New Mountain Finance (NMFC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for New Mountain Finance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for New Mountain Finance and related companies with MarketBeat.com's FREE daily email newsletter.