Steven B. Klinsky, a director at New Mountain Finance Corp (NASDAQ:NMFC), recently made significant purchases of the company's common stock, as revealed in a recent SEC filing. On November 22, Klinsky acquired a total of 36,721 shares, with a cumulative value of approximately $430,010, at an average price of $11.71 per share.
The transactions were executed in two separate acquisitions. The first involved 12,241 shares, while the second comprised 24,480 shares. These shares were acquired indirectly through various trusts and entities associated with Klinsky, as noted in the filing.
Following these transactions, Klinsky's direct and indirect holdings in New Mountain Finance Corp amount to substantial figures across different trusts and entities, reflecting his continued investment in the company.
In other recent news, New Mountain Finance Corporation (NMFC) reported a robust Q3 performance, with an adjusted net investment income surpassing its regular dividend. The company's net asset value per share saw a minor decrease to $12.62, while a supplemental dividend of $0.01 per share is set to be paid at the end of December. NMFC's portfolio, mainly floating rate, is well-positioned against interest rate changes.
Management expressed optimism about the direct lending market and M&A activity in early 2025. They anticipate increased opportunities for capital deployment and fee income. Furthermore, NMFC plans to reduce Payment-in-Kind (PIK) exposure in 2025 and replace PIK repayments with new cash-oriented assets.
Despite a slight decrease in net asset value per share and a sequential decrease in dividends from the Senior Loan Program, NMFC's credit performance remains strong, with 97.3% of the portfolio rated green. The company's investment strategy, focusing on defensive growth sectors, has contributed to this performance. These are among the recent developments in the company's operations.
InvestingPro Insights
Steven B. Klinsky's recent substantial purchase of New Mountain Finance Corp (NASDAQ:NMFC) shares aligns with several key financial indicators and trends highlighted by InvestingPro data. The company's attractive dividend yield of 11.61% 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, especially considering that NMFC "has maintained dividend payments for 14 consecutive years," according to another InvestingPro Tip.
The company's P/E ratio of 10.93 suggests that the stock may be undervalued relative to its earnings, potentially making it an attractive investment for insiders like Klinsky. Additionally, NMFC's revenue growth of 4.95% over the last twelve months indicates a positive trajectory, which could bode well for future performance and dividend sustainability.
It's worth noting that while NMFC has shown profitability over the last twelve months, an InvestingPro Tip cautions that "short term obligations exceed liquid assets," which investors should consider alongside the positive indicators. For a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide further context to Klinsky's investment decision.
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