New York—Adam B. Weinstein, Executive Vice President, Chief Administrative Officer, and Director at New Mountain Finance Corp (NASDAQ:NMFC), has made a significant acquisition of company shares. According to a recent SEC filing, Weinstein purchased 45,000 shares of common stock on November 4, 2024, at an average price of $10.873 per share. This transaction amounts to a total value of approximately $489,284.
Following this purchase, Weinstein holds 552,534.50 shares of New Mountain Finance Corp, which includes shares acquired through the company's dividend reinvestment plan since his last reported ownership update in September 2022. This transaction underscores Weinstein's ongoing commitment to the company, where he plays a pivotal role in its executive leadership.
In other recent news, New Mountain Finance Corporation (NMFC) reported strong third-quarter earnings, surpassing its regular dividend with an adjusted net investment income of $0.34 per share. The company also declared a supplemental dividend of $0.01 per share to be paid in late December. Despite a slight decrease in net asset value per share to $12.62, the company's portfolio, primarily floating-rate, positions it well against interest rate changes.
These recent developments also include NMFC's plans for early 2025, which involve increased opportunities for capital deployment and fee income, driven by anticipated M&A activity. The company also intends to reduce its Payment-in-Kind (PIK) exposure and replace PIK repayments with new cash-oriented assets.
Furthermore, NMFC's management, holding approximately 12% of the company's shares, demonstrated strong alignment with shareholder interests. The company's robust credit performance is evidenced by 97.3% of the portfolio being rated green. Since its IPO, NMFC has returned over $1.3 billion to shareholders, affirming the firm's commitment to shareholder returns.
InvestingPro Insights
Adam B. Weinstein's recent purchase of New Mountain Finance Corp (NASDAQ:NMFC) shares aligns with several key financial indicators and trends highlighted by InvestingPro. The company's stock is currently trading near its 52-week low, with a price of $10.68 as of the previous close, which is 82.6% of its 52-week high. This could suggest that Weinstein sees value in the stock at current levels.
NMFC boasts a substantial dividend yield of 12.83%, which is particularly noteworthy given that the company has maintained dividend payments for 14 consecutive years. This impressive track record is reflected in an InvestingPro Tip, which states that NMFC "Pays a significant dividend to shareholders." For income-focused investors, this consistent dividend history could be a compelling reason to consider the stock.
The company's financial health appears solid, with an InvestingPro Tip indicating that "Liquid assets exceed short term obligations." This suggests that NMFC is well-positioned to meet its near-term financial commitments. Additionally, the company's P/E ratio of 10.09 implies that the stock may be undervalued relative to its earnings.
It's worth noting that NMFC has been profitable over the last twelve months, with a gross profit of $373.51 million and an operating income of $285.31 million for the same period. This profitability, combined with the stock's current valuation and dividend yield, may have factored into Weinstein's decision to increase his stake in the company.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 8 more tips available for NMFC. These tips could provide further context to Weinstein's investment decision and the company's overall financial position.
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