New Mountain Finance Q3 adjusted net investment income falls YoY

Overview

• US direct lender's Q3 adjusted net investment income per share declined year-over-year

• Net asset value per share fell from prior quarter

• Company extended $150 mln stock repurchase program through 2027

Outlook

• Company declares Q4 2026 distribution of $0.25 per share

• Company sees improving prospects heading into 2027

• Company aims to reinvest in first-lien, cash-paying assets to improve income quality

Result Drivers

• EQUITY AND PIK PERFORMANCE - Co said positive performance in equity and PIK-yielding positions supported results, with focus on monetizations and reinvestment into first-lien, cash-paying assets

• PORTFOLIO QUALITY - Majority of portfolio investments rated Green, indicating performance in line with or above expectations

Company press release:

Key Details

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 "buy"

• Wall Street's median 12-month price target for New Mountain Finance Corp is $8.00, about 13.8% above its October 30 closing price of $7.03

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

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(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.)