New Mountain Finance Corporation stock trades under the ticker NMFC & has shown recent bullishness that traders & investors should research further into for when market volatility has cooled off.
NMFC stock closed at $11.99/share on 4/24/2023.
New Mountain Finance Corporation (NMFC) Stock’s Technical Performance Broken Down
NMFC Stock Price: $11.99
10 Day Moving Average: $11.91
50 Day Moving Average: $12.26
200 Day Moving Average: $12.52
RSI: 48.64
MACD: -0.104
Yesterday, NMFC stock completed a bullish MACD crossover, climbing 1.96% on the day’s session.
Recent trading volumes have been above average compared to the year prior & their RSI is neutral, as prices have been declining for the better part of the last two months & investors try to assess a proper valuation on their share price.
Due to broader market volatility in the coming weeks, it is wisest to watch how NMFC stock behaves around its support levels while planning a proper entry for a less volatile market environment.
NMFC has support at the $11.91, $11.89, $11.64 & $11.27/share price levels, with resistance at the $12.20, $12.26 (50 day moving average), $12.44 & $12.52/share (50 day moving average) price levels.
New Mountain Finance Corporation (NMFC) Stock As A Long-Term Investment
Long-term oriented investors will like NMFC stock’s valuation metrics, with a 16.05 P/E (ttm) & a 0.91 P/B (mrq).
They recently reported 8.6% Quarterly Revenue Growth Y-o-Y, with -71.5% Quarterly Earnings Growth Y-0-Y.
Their balance sheet will require a more thorough review, with $71.19M of Total Cash (mrq) & $1.98B of Total Debt (mrq).
NMFC stock pays a 10.37% dividend yield, which does not look sustainable in the long-run, as their payout ratio is >100.
44.24% of NMFC stock’s outstanding share float is owned by institutional investors.
New Mountain Finance Corporation (NMFC) Stock As A Short-Term Trade Using Options
Traders with shorter time horizons can trade options to profit from NMFC stock’s price movements, while protecting their portfolios from volatility.
I am looking at the contracts with the 5/19 expiration date.
There are no call options with open interest that are in-the-money, but there is open interest at the $12.50 strike price, 4% out-of-the-money.
The $12.50 puts are the only strike price with liquidity that is in-the-money.
Tying It All Together
NMFC stock has many interesting attributes that traders & investors will find appealing for when market volatility has subsided.
Investors will like their valuation metrics, but may want to look into their balance sheet & how sustainable their dividend is in the long-run.
Traders will like their recent technical performance, but will be disappointed by how liquid their options are.
Overall, it is worth taking a closer look into NMFC stock to see how it fits into your portfolio strategy.
*** I DO NOT OWN SHARES OR OPTIONS CONTRACT POSITIONS IN NMFC STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***