Closed End Fund Advisors Inc. Acquires New Holdings in New Mountain Finance Corporation $NMFC

Closed End Fund Advisors Inc. purchased a new position in New Mountain Finance Corporation (NASDAQ:NMFC) during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 586,070 shares of the company’s stock, valued at approximately $5,398,000. New Mountain Finance makes up 3.2% of Closed End Fund Advisors Inc.’s portfolio, making the stock its 5th biggest holding. Closed End Fund Advisors Inc. owned about 0.57% of New Mountain Finance as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of NMFC. US Bancorp DE bought a new stake in New Mountain Finance in the third quarter worth about $48,000. Advisory Services Network LLC bought a new stake in New Mountain Finance in the third quarter worth about $65,000. Sound Income Strategies LLC raised its position in New Mountain Finance by 699.5% in the fourth quarter. Sound Income Strategies LLC now owns 7,683 shares of the company’s stock worth $70,000 after acquiring an additional 6,722 shares in the last quarter. Alpha Cubed Investments LLC bought a new stake in New Mountain Finance in the fourth quarter worth about $94,000. Finally, United Capital Financial Advisors LLC bought a new stake in New Mountain Finance in the third quarter worth about $97,000. 32.08% of the stock is currently owned by institutional investors.

New Mountain Finance Trading Down 2.2%

Shares of NMFC opened at $7.83 on Friday. The business’s 50-day moving average price is $8.08 and its 200 day moving average price is $8.53. The stock has a market capitalization of $739.54 million, a P/E ratio of -13.50 and a beta of 0.54. New Mountain Finance Corporation has a 1-year low of $7.47 and a 1-year high of $11.04. The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 1.26.

New Mountain Finance (NASDAQ:NMFC) last issued its quarterly earnings results on Monday, May 4th. The company reported $0.32 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.32. The firm had revenue of $41.27 million for the quarter, compared to analysts’ expectations of $67.76 million. New Mountain Finance had a positive return on equity of 11.14% and a negative net margin of 18.65%.New Mountain Finance’s revenue was down 19.7% on a year-over-year basis. During the same quarter last year, the business posted $0.32 EPS. Analysts expect that New Mountain Finance Corporation will post 1.11 earnings per share for the current year.

New Mountain Finance Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 12.8%. The ex-dividend date of this dividend is Tuesday, June 16th. New Mountain Finance’s payout ratio is -220.69%.

Insider Activity

In other New Mountain Finance news, EVP Adam B. Weinstein bought 12,900 shares of the stock in a transaction on Tuesday, March 17th. The shares were bought at an average price of $7.61 per share, with a total value of $98,169.00. Following the purchase, the executive vice president directly owned 751,756 shares in the company, valued at $5,720,863.16. The trade was a 1.75% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Steven B. Klinsky bought 276,242 shares of the stock in a transaction on Wednesday, March 11th. The shares were acquired at an average cost of $8.05 per share, for a total transaction of $2,223,748.10. Following the purchase, the director owned 5,370,858 shares in the company, valued at approximately $43,235,406.90. This represents a 5.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have acquired 512,900 shares of company stock worth $4,123,169. Company insiders own 14.90% of the company’s stock.

Analyst Ratings Changes

NMFC has been the topic of several research reports. Weiss Ratings cut shares of New Mountain Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 18th. Wall Street Zen upgraded shares of New Mountain Finance from a “sell” rating to a “hold” rating in a research report on Sunday, April 5th. B. Riley Financial dropped their price target on shares of New Mountain Finance from $10.00 to $7.50 and set a “neutral” rating on the stock in a research report on Tuesday, March 3rd. Keefe, Bruyette & Woods dropped 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, March 4th. Finally, Wells Fargo & Company dropped their price target on New Mountain Finance from $10.00 to $8.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 26th. Five investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, New Mountain Finance presently has a consensus rating of “Reduce” and an average price target of $9.25.

New Mountain Finance Profile

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.