Steven B. Klinsky, a director at New Mountain Finance Corp (NASDAQ:NMFC), has increased his holdings in the company by acquiring shares worth $371,080. According to a recent SEC filing, Klinsky purchased a total of 31,476 shares over two days, with transaction prices varying slightly between $11.7432 and $11.7448 per share. The purchase comes as NMFC maintains an attractive dividend yield of 11.7% and trades at a P/E ratio of 10.9x, with the current share price of $11.79 sitting near its 52-week range of $10.62 to $13.18.
These acquisitions were made through various trusts and entities associated with Klinsky, including the Steven B. Klinsky 2008 Long Term Trust and the Steven B. Klinsky 2024 Revocable Trust. Following these transactions, Klinsky's indirect ownership of New Mountain Finance Corp shares stands at over 4.1 million shares, while his direct ownership is approximately 955,195 shares. According to InvestingPro, NMFC has maintained dividend payments for 14 consecutive years, demonstrating strong commitment to shareholder returns.
The purchases reflect Klinsky's continued investment in New Mountain Finance Corp, a company specializing in providing financial solutions to middle-market companies. With a market capitalization of $1.27 billion, NMFC has shown consistent profitability over the last twelve months. For deeper insights into NMFC's financial health and additional ProTips, visit InvestingPro.
In other recent news, New Mountain Finance Corporation (NMFC) posted robust Q3 earnings, outperforming the regular dividend with an adjusted net investment income of $0.34 per share. NMFC also reported a slight decrease in net asset value per share to $12.62 and issued a supplemental dividend of $0.01 per share. The company's portfolio, primarily floating rate, is well-positioned against interest rate fluctuations. Management expressed optimism about the direct lending market and anticipates an increase in M&A activity in early 2025.
NMFC also plans to reduce Payment-in-Kind (PIK) exposure and replace PIK repayments with new cash-oriented assets in 2025. Despite a minor decrease in the net asset value per share and a sequential decrease in dividends from the Senior Loan Program, NMFC has demonstrated strong credit performance, with 97.3% of the portfolio rated green. This strong performance is attributed to the company's diversified portfolio and investment strategy focused on defensive growth sectors.
The company has returned over $1.3 billion to shareholders since its IPO and continues to maintain a healthy debt-to-equity ratio. These recent developments highlight NMFC's commitment to shareholder returns and strategic financial management.
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