New Mountain Finance Q3 net investment income dips
New Mountain Finance reported a Q3 net investment income of $0.32 per share, with a decrease in NAV to $12.06. The company has doubled its stock repurchase plan to $100 million and is exploring a $500 million secondary portfolio sale. Approximately 95% of its portfolio is rated green, and the senior asset mix has increased to 80%. Analysts currently rate the stock as 'hold', with a median 12-month price target of $10.50, reflecting a potential upside from its recent trading price of $9.67.
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Overview
- New Mountain Finance Q3 net investment income per weighted average share at $0.32
- Company’s NAV per share decreased to $12.06
- Company doubled stock repurchase plan to $100 mln, enhancing financial flexibility
Outlook
- Company exploring $500 mln secondary portfolio sale to enhance financial flexibility
- Company confident in delivering consistent enhanced yield with strong margin of safety
Result Drivers
- HIGH PORTFOLIO QUALITY - Approximately 95% of NMFC’s portfolio is rated green, indicating strong credit performance
- SENIOR ASSET MIX - Increased senior-oriented asset mix to 80%, up from 75% a year ago
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 NAV $12.06
Per
Share
Q3 Net $1.26
Asset bln
Value
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is no “strong buy” or “buy”, 6 “hold” and 1 “sell” or “strong sell”
- The average consensus recommendation for the closed end funds peer group is “hold”
- Wall Street’s median 12-month price target for New Mountain Finance Corp is $10.50, about 7.9% above its October 31 closing price of $9.67
- The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
