Steven B. Klinsky, a director at New Mountain Finance Corp (NASDAQ:NMFC), has recently acquired a substantial amount of the company's common stock, according to a filing with the Securities and Exchange Commission. The transactions, which took place on November 18 and 19, involved the purchase of 100,272 shares at prices ranging from $11.5214 to $11.6271 per share, totaling approximately $1,161,067.
The acquisitions were made through various trusts associated with Klinsky, including the Steven B. Klinsky 2008 Long Term Trust and the Steven B. Klinsky 2024 Revocable Trusts, as noted in the filing. These purchases have increased Klinsky's indirect ownership in the company, reflecting his continued confidence in New Mountain Finance Corp's prospects.
As of the latest transactions, Klinsky's holdings amount to significant stakes across different trusts, with the total shares owned following these transactions reaching over 4 million shares. Investors often watch insider transactions like these closely, as they can signal the insider's perspective on the company's future performance.
In other recent news, New Mountain Finance Corporation (NMFC) reported robust Q3 earnings, surpassing its dividend with an adjusted net investment income of $0.34 per share. The company's net asset value per share showed a slight decrease to $12.62. A supplemental dividend of $0.01 per share was issued, set to be paid in December. The company is primarily invested in floating rate assets, which are advantageous in the face of interest rate changes.
Recent developments show NMFC is optimistic about the direct lending market and anticipates increased M&A activity in early 2025. This is expected to create 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.
Analysts note that NMFC's credit performance remains strong, with 97.3% of the portfolio rated green. However, the net asset value per share saw a minor decrease of 0.9% to $12.62. The average yield on the portfolio decreased to 10.5%, primarily due to a shift in the SOFR curve. Despite these challenges, NMFC reaffirms its commitment to its investment strategy and shareholder returns.
InvestingPro Insights
Steven B. Klinsky's recent substantial purchase of New Mountain Finance Corp (NASDAQ:NMFC) shares aligns with several positive indicators highlighted by InvestingPro. The company's attractive dividend yield of 11.8% supports one of the InvestingPro Tips, which notes that NMFC "pays a significant dividend to shareholders." This high yield may have been a factor in Klinsky's decision to increase his stake, especially considering that NMFC "has maintained dividend payments for 14 consecutive years," according to another InvestingPro Tip.
The company's P/E ratio of 10.67 suggests a relatively low valuation compared to earnings, which could indicate potential value for investors like Klinsky. Additionally, NMFC's profitability over the last twelve months, as mentioned in an InvestingPro Tip, reinforces the company's financial stability.
While the stock's price has seen a slight decline in recent months, with a 3-month total return of -2.53%, the company's revenue growth of 4.95% over the last twelve months indicates ongoing business expansion. This growth, coupled with the company's 100% gross profit margin, suggests efficient operations and potential for future value creation.
For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 6 more InvestingPro Tips available for NMFC, providing a more comprehensive view of the company's financial health and market position.
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