The stock price of MidCap Financial Investment Corporation (NASDAQ: MFIC) has surged by 0.11 when compared to previous closing price of 13.32, but the company has seen a -2.88% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-13 that MidCap Financial Investment offers a high dividend yield of 11.3%, appealing to income-oriented investors despite recent underperformance due to merger uncertainty and rising non-accrual rates. The merger with Apollo funds boosts MFIC’s net assets by 44%, enhancing liquidity and positioning it for future growth despite potential short-term earnings impacts from interest rate cuts. MFIC’s diverse portfolio, with 97% senior secured first lien investments, mitigates risk and supports a strong dividend coverage rate of 118.4%, ensuring distribution stability.
Is It Worth Investing in MidCap Financial Investment Corporation (NASDAQ: MFIC) Right Now?
The price-to-earnings ratio for MidCap Financial Investment Corporation (NASDAQ: MFIC) is above average at 7.82x. The 36-month beta value for MFIC is also noteworthy at 1.55. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 2 rating it as “overweight,” 5 rating it as “hold,” and 1 rating it as “sell.”
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The public float for MFIC is 93.04M, and at present, short sellers hold a 0.58% of that float. The average trading volume of MFIC on September 26, 2024 was 476.43K shares.
MFIC’s Market Performance
The stock of MidCap Financial Investment Corporation (MFIC) has seen a -2.88% decrease in the past week, with a -3.93% drop in the past month, and a -11.06% fall in the past quarter. The volatility ratio for the week is 1.11%, and the volatility levels for the past 30 days are at 1.29% for MFIC. The simple moving average for the past 20 days is -2.70% for MFIC’s stock, with a -6.83% simple moving average for the past 200 days.
Analysts’ Opinion of MFIC
Many brokerage firms have already submitted their reports for MFIC stocks, with Keefe Bruyette repeating the rating for MFIC by listing it as a “Outperform.” The predicted price for MFIC in the upcoming period, according to Keefe Bruyette is $15 based on the research report published on August 05, 2024 of the current year 2024.
Compass Point, on the other hand, stated in their research note that they expect to see MFIC reach a price target of $16. The rating they have provided for MFIC stocks is “Buy” according to the report published on July 25th, 2024.
Compass Point gave a rating of “Neutral” to MFIC, setting the target price at $16 in the report published on June 10th of the current year.
MFIC Trading at -3.47% from the 50-Day Moving Average
After a stumble in the market that brought MFIC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -17.28% of loss for the given period.
Volatility was left at 1.29%, however, over the last 30 days, the volatility rate increased by 1.11%, as shares sank -3.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.62% lower at present.
During the last 5 trading sessions, MFIC fell by -2.80%, which changed the moving average for the period of 200-days by -3.65% in comparison to the 20-day moving average, which settled at $13.68. In addition, MidCap Financial Investment Corporation saw -1.04% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MFIC starting from PEARLMAN EMANUEL R, who purchase 1,000 shares at the price of $12.98 back on Aug 12 ’24. After this action, PEARLMAN EMANUEL R now owns 1,000 shares of MidCap Financial Investment Corporation, valued at $12,980 using the latest closing price.
Stock Fundamentals for MFIC
Current profitability levels for the company are sitting at:
- 0.89 for the present operating margin
- 0.25 for the gross margin
The net margin for MidCap Financial Investment Corporation stands at 1.19. The total capital return value is set at 0.04. Equity return is now at value 11.10, with 4.50 for asset returns.
Based on MidCap Financial Investment Corporation (MFIC), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 1.45. The interest coverage ratio of the stock is 1.13.
Currently, EBITDA for the company is 0.27 million with net debt to EBITDA at 15.18. When we switch over and look at the enterprise to sales, we see a ratio of 26.03. The receivables turnover for the company is 3.89for trailing twelve months and the total asset turnover is 0.04.
Conclusion
In summary, MidCap Financial Investment Corporation (MFIC) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
