Insider Buying Sparks Interest in New Mountain Finance Corporation Stock
In our latest analysis from the Dividend Channel ”DividendRank” report, we focus on companies with insider purchases in the last six months. Company executives often have valuable insights into their businesses, and their stock purchases can signal potential value. When they invest their personal funds, it indicates confidence in the company’s future. One notable instance is New Mountain Finance Corporation (Symbol: NMFC), where CFO and Treasurer Kris Corbett recently bought shares.
On August 5, Corbett purchased 6,500 shares of NMFC at a total cost of $76,157.90, which breaks down to a price of $11.72 per share. On Thursday, the stock was available for as low as $11.13 per share, offering investors a chance to buy at a 5% discount compared to Corbett’s investment. However, since the purchase, Corbett has collected $0.34 per share in dividends, which means they are currently at a 2.1% loss when accounting for total returns. At present, NMFC shares have risen by 1.46% on the day. The chart below provides a visual of NMFC’s performance over the past year against its 200-day moving average:
The 52-week low for NMFC shares stands at $11.13, while the high reaches $13.23, with the most recent trading price at $11.52. Below is a summary of the insider buying activity over the past six months:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 08/05/2024 | Kris Corbett | CFO and Treasurer | 6,500 | $11.72 | $76,157.90 |
The DividendRank report highlights NMFC’s favorable valuation and strong profitability. Currently, NMFC shares have a price of $11.33, giving it a price-to-book ratio of 0.9 and an annual dividend yield of 11.30%. In contrast, the average company in the Dividend Channel’s coverage yields 4.4% and has a price-to-book ratio of 2.4. The report also emphasizes NMFC’s robust quarterly dividends and positive long-term growth trends in key financial metrics.
As the report noted, ”Dividend investors interested in value generally seek out the most productive companies trading at favorable valuations. Our approach focuses on identifying such stocks through our DividendRank formula, which assesses profitability and valuation metrics to generate a list of compelling investment opportunities.”
New Mountain Finance Corporation currently pays an annualized dividend of $1.28 per share, disbursed quarterly. The last dividend ex-date was December 17, 2024. Below is a long-term chart of NMFC’s dividends, which illustrates the significance of past performance in determining future consistency.
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The views and opinions expressed herein belong to the author and do not necessarily reflect those of Nasdaq, Inc.
