New Mountain Finance: 29% NAV Discount And Stock Buybacks Create Opportunity

The Asian Investor 33K Followers Follow Summary New Mountain Finance remains a 'Buy' despite a 22% dividend cut and a 24% portfolio contraction year-over-year. The dividend reset to $0.25 per share restored dividend coverage to 104% in Q2, mitigating immediate payout sustainability concerns. NMFC's discount to NAV has not widened since my last coverage, indicating the market already priced in the dividend reduction. Management is leveraging the persistent NAV discount for accretive capital allocation and buying back stock aggressively. Dragon Claws/iStock via Getty Images New Mountain Finance ( NMFC ) lowered its dividend by 22% to $0.25 per share in the second-quarter amid a sharp contraction in the BDC's portfolio size and associated net investment income over the course of the last This article was written by The Asian Investor 33K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NMFC, ARCC, OBDC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.