“CMFN reported net investment income (NII) per share of $0.25, in line with our and consensus ests, and covering the $0.25 dividend. It is the 4th quarters in a row that they cover the dividend. The stock is only trading at 66% of NAV, normally a sign of a company where NAV is eroding and dividend is at risk, in fact we believe the company can continue to cover its dividend in C4Q18 and CY2019. We attribute the recent stable performance to the company’s strategy of originating mostly first lien loans, albeit with lower yield compared to other tranches. Given where we are in the cycle, we believe it is the right way for a company like CMFN with only 30 portfolio companies to be conservative in underwriting.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 9.7% and a 61.1% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Fidus Investment Corporation.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CM Finance with a $10.50 average price target.
The company has a one-year high of $9.90 and a one-year low of $7.40. Currently, CM Finance has an average volume of 22.16K.
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CM Finance, Inc. is a closed-end investment company, which engages in business development. Its investment objective is to is to maximize total return to stockholders in the form of current income and capital appreciation by investing directly in debt and related equity of privately held middle- market companies.