Steven B. Klinsky, a director at New Mountain Finance Corp (NASDAQ:NMFC), has significantly increased his stake in the company, purchasing a total of $1.03 million worth of common stock. The transactions occurred over two days, with shares acquired on November 20 and November 21, 2024. The purchase prices ranged from $11.5084 to $11.5872 per share.
The acquisitions were executed indirectly through various trusts, including the Steven B. Klinsky 2008 Long Term Trust and the Steven B. Klinsky 2024 Revocable Trust, among others. Following these transactions, Klinsky's total direct and indirect holdings in New Mountain Finance Corp have increased, reflecting a substantial commitment to the company's future performance.
These transactions highlight Klinsky's ongoing involvement with New Mountain Finance Corp, which is headquartered in New York. The company continues to operate in the finance sector, providing capital solutions to middle-market companies.
In other recent news, New Mountain Finance Corporation (NMFC) reported strong Q3 earnings, with an adjusted net investment income of $0.34 per share, surpassing the regular dividend of $0.32 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. NMFC's portfolio, primarily floating rate, positions the company favorably against interest rate changes.
The company anticipates increased opportunities for capital deployment and fee income in early 2025, driven by mergers and acquisitions activity. Management, holding approximately 12% of the company's shares, plans to reduce Payment-in-Kind (PIK) exposure in 2025 and replace PIK repayments with new cash-oriented assets.
Despite a minor decrease in the net asset value per share and a sequential decrease in dividends from the Senior Loan Program, NMFC's strong credit performance is evident with 97.3% of the portfolio rated green. The average yield on the portfolio stands at 10.5%, with a robust weighted average EBITDA of $189 million among borrowers. These are some of the recent developments for NMFC, indicating a positive outlook for the company.
InvestingPro Insights
Steven B. Klinsky's recent $1.03 million investment in New Mountain Finance Corp (NASDAQ:NMFC) aligns with several key financial indicators and trends highlighted by InvestingPro. The company's attractive dividend yield of 11.65% as of the latest data underscores 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, particularly given that NMFC "has maintained dividend payments for 14 consecutive years," according to another InvestingPro Tip.
The company's P/E ratio of 10.84 suggests that the stock may be undervalued relative to its earnings, which could have also influenced Klinsky's purchase decision. Additionally, NMFC's revenue growth of 4.95% over the last twelve months indicates a positive trajectory for the company's top line, albeit modest.
It's worth noting that while NMFC has been "profitable over the last twelve months," as highlighted by an InvestingPro Tip, the company faces some financial challenges. One InvestingPro Tip cautions that "short term obligations exceed liquid assets," which investors should consider when evaluating the company's financial health.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond what's mentioned here. In fact, there are 6 more InvestingPro Tips available for NMFC, providing a deeper insight into the company's financial position and market performance.
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