A Cluster of Insiders Bet Big on New Mountain Finance, Signaling Confidence in Defensive Growth

New Mountain Finance Corporation (NMFC:US) is a leading business development company specializing in direct lending to upper-middle-market U.S. companies, especially in defensive industries. Backed by New Mountain Capital’s sector expertise, NMFC’s portfolio emphasizes senior secured loans that offer attractive, risk-adjusted returns.

Insider Buying Signals Confidence

Following a three-month pause in insider investments, a series of insider trades at New Mountain Finance Corporation has caught the attention of market watchers. The company's top executives made a cluster of purchases between November 4 and November 7, indicating strong internal confidence in its growth trajectory.

• Steven Klinsky, Chairman of the Board, made one of the most significant insider buys, acquiring 384,126 shares at an average price of $10.83, totaling $4.16 million.

• John R. Kline, the President and Chief Executive Officer, bought 41,550 shares at $10.92 per share, for a total of $453,682.

• Kris Corbett, Chief Financial Officer, purchased 2,500 shares at $10.85 per share, totaling $27,118.

• Adam Weinstein, a Board member, also bought 45,000 shares at $10.87 each, contributing $489,285 to the cluster of insider purchases.

Strong Financial Results for Q3 2024

New Mountain Finance posted robust third-quarter results. The company reported adjusted net investment income of $36.7 million, or $0.34 per share, reflecting consistent earnings aligned with guidance. Its net asset value (NAV) per share stood at $12.62, slightly declining from $12.74 in Q2 but demonstrating resilience in a challenging market.

NMFC’s credit performance remains impressive, with 97.3% of its portfolio rated green on its internal risk scale, up from 97.0% in the previous quarter. The company generated $146.2 million in new originations while managing $100.6 million in repayments and $1.5 million in asset sales, balancing growth with prudent capital management. Moreover, NMFC declared a fourth-quarter dividend of $0.32 per share, supplemented by a $0.01 special distribution, underscoring its commitment to returning value to shareholders.

With a disciplined, defensive growth strategy and solid financial health, NMFC’s significant insider investments and stable performance signal a promising future. The company’s focus on high-quality assets and consistent dividend payouts highlight its commitment to long-term shareholder value in a volatile market.