Should I Buy NMFC? NMFC 2026 Analysis

Should You Buy New Mountain Finance Corp (NMFC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

8.640

1 Day change

0.47%

52 Week Range

11.700

Analysis Updated At

2026/01/26

New Mountain Finance Corp (NMFC) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock's technical indicators are bearish, the financial performance is weak with significant YoY declines, and analysts have lowered price targets with underperform or neutral ratings. While insider buying is a positive catalyst, it is not sufficient to outweigh the negative trends. Holding off on investment is recommended until stronger signals or improvements in fundamentals emerge.

Technical Analysis

The stock's technical indicators are bearish. The MACD is slightly positive but contracting, RSI is neutral at 42.554, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot level of 9.177, with key support at 9.025 and resistance at 9.33.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The options data shows a strong bias toward calls, with a very low put-call ratio in both open interest and volume, indicating bullish sentiment among options traders. However, this sentiment is not supported by other indicators.

Technical Summary

Sell

Buy

Positive Catalysts

Insider buying has surged by 20189.46% over the last month, indicating confidence from company insiders.

Neutral/Negative Catalysts

Weak financial performance in Q3 2025, with revenue down -29.83% YoY, net income down -48.98% YoY, and EPS down -40.91% YoY. Analysts have also lowered price targets and ratings, with BofA maintaining an underperform rating and B. Riley a neutral rating. No recent news or congress trading data to provide additional support.

Financial Performance

The company's Q3 2025 financials show significant declines: revenue dropped to $58.83M (-29.83% YoY), net income dropped to $12.19M (-48.98% YoY), EPS dropped to $0.13 (-40.91% YoY), and gross margin fell to 44.51% (-17.36% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have lowered price targets recently. BofA reduced the target to $9 from $10 with an underperform rating, and B. Riley reduced the target to $10 from $11 with a neutral rating. Both cite weak earnings performance as a concern.

2 Analyst Rating

Wall Street analysts forecast NMFC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NMFC is 9.5 USD with a low forecast of 9 USD and a high forecast of 10 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

1 Hold

1 Sell

Moderate Sell

Current: 8.600

Low

Averages

9.5

High

Current: 8.600

Low

Averages

9.5

High

BofA

Underperform

downgrade

$10 -> $9

AI Analysis

2025-11-21

Reason

BofA

Price Target

$10 -> $9

AI Analysis

2025-11-21

downgrade

Underperform

Reason

BofA lowered the firm's price target on New Mountain Finance to $9 from $10 and keeps an Underperform rating on the shares. The firm is adjusting estimates and price targets among its business development company coverage following quarterly earnings reports from the group.

B. Riley

Neutral

downgrade

$11 -> $10

2025-11-05

Reason

B. Riley

Price Target

$11 -> $10

2025-11-05

downgrade

Neutral

Reason

B. Riley lowered the firm's price target on New Mountain Finance to $10 from $11 and keeps a Neutral rating on the shares following the Q3 report. The company's raw earnings were below expectations, the analyst tells investors in a research note.

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NMFC Should I Buy

NMFC Should I Buy

Should You Buy New Mountain Finance Corp (NMFC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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