Kris Corbett, the Chief Financial Officer and Treasurer of New Mountain Finance Corp (NASDAQ:NMFC), has acquired additional shares in the company. According to a recent filing, Corbett purchased 2,500 shares of common stock on November 4, 2024, at a price of $10.8474 per share. The total value of this transaction amounts to $27,118. Following this transaction, Corbett holds 9,000 shares indirectly through the Corbett Living Trust, where he serves as trustee.
In other recent news, New Mountain Finance Corporation (NMFC) announced strong Q3 earnings, surpassing its regular dividend with an adjusted net investment income of $0.34 per share. The company's net asset value per share saw a slight decrease to $12.62, and a supplemental dividend of $0.01 per share was issued to be paid at the end of December. The portfolio, primarily floating rate, is positioned favorably against interest rate changes.
NMFC remains optimistic about the direct lending market and anticipates increased M&A activity in early 2025. This is expected to provide more opportunities for capital deployment and fee income. The company also plans to reduce Payment-in-Kind (PIK) exposure in 2025 and replace PIK repayments with new cash-oriented assets.
While the average yield on the portfolio decreased to 10.5% due to a shift in the SOFR curve, 97.3% of the portfolio is rated green, indicating strong credit performance. Despite a minor decrease in dividends from the Senior Loan Program (SLP), NMFC has returned over $1.3 billion to shareholders since its IPO, demonstrating its commitment to shareholder returns.
InvestingPro Insights
The recent insider purchase by CFO Kris Corbett aligns with several key insights from InvestingPro. New Mountain Finance Corp (NASDAQ:NMFC) currently trades at a P/E ratio of 10.09, suggesting a relatively attractive valuation. This could explain why insiders like Corbett are increasing their stakes in the company.
One of the most notable InvestingPro Tips is that NMFC pays a significant dividend to shareholders, with a current dividend yield of 12.83%. This high yield is particularly impressive given that the company has maintained dividend payments for 14 consecutive years, demonstrating a strong commitment to returning value to shareholders.
The stock's recent performance, however, has been challenging. NMFC is currently trading near its 52-week low, with a 1-month price total return of -9.87%. This downturn may present an opportunity for investors who share Corbett's confidence in the company's prospects.
InvestingPro Data also reveals that NMFC's revenue for the last twelve months as of Q3 2024 was $373.51 million, with a modest growth of 4.95% over the same period. The company's profitability remains solid, with a gross profit margin of 100% and operating income of $285.31 million for the same period.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for NMFC, providing a deeper understanding of the company's financial health and market position.
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