Zacks Investment Research cut shares of Main Street Capital (NYSE:MAIN) from a buy rating to a hold rating in a research note published on Saturday morning.
According to Zacks, “Main Street Capital Corporation is a specialty investment company providing customized financing solutions to lower middle market companies which operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides one stop financing alternatives to its portfolio companies. “
Several other research firms also recently issued reports on MAIN. Janney Montgomery Scott set a $35.00 price target on shares of Main Street Capital and gave the company a hold rating in a research report on Friday, November 2nd. National Securities reissued a neutral rating and issued a $38.00 price target on shares of Main Street Capital in a research report on Monday, November 5th. Finally, Raymond James raised shares of Main Street Capital from a market perform rating to an outperform rating and set a $41.00 price target for the company in a research report on Monday, November 5th. They noted that the move was a valuation call. Five research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $39.50.
Shares of MAIN stock opened at $37.47 on Friday. The company has a market cap of $2.29 billion, a PE ratio of 15.68 and a beta of 0.81. Main Street Capital has a 52 week low of $34.37 and a 52 week high of $40.82. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.13 and a quick ratio of 0.13.
Main Street Capital (NYSE:MAIN) last announced its quarterly earnings data on Thursday, November 1st. The financial services provider reported $0.63 EPS for the quarter, topping the consensus estimate of $0.62 by $0.01. Main Street Capital had a net margin of 95.77% and a return on equity of 10.61%. The company had revenue of $58.26 million during the quarter, compared to the consensus estimate of $59.19 million. During the same quarter last year, the firm posted $0.60 EPS. The company’s quarterly revenue was up 12.5% on a year-over-year basis. On average, sell-side analysts expect that Main Street Capital will post 2.54 earnings per share for the current fiscal year.
The firm also recently declared a dividend, which will be paid on Thursday, December 27th. Investors of record on Tuesday, December 18th will be given a $0.275 dividend. The ex-dividend date is Monday, December 17th. This is an increase from Main Street Capital’s previous dividend of $0.20. Main Street Capital’s dividend payout ratio (DPR) is presently 97.91%.
In other Main Street Capital news, Chairman Vincent D. Foster purchased 25,869 shares of Main Street Capital stock in a transaction that occurred on Friday, November 16th. The stock was acquired at an average price of $38.66 per share, with a total value of $1,000,095.54. Following the transaction, the chairman now owns 1,583,565 shares in the company, valued at approximately $61,220,622.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 5.31% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the business. Cue Financial Group Inc. purchased a new position in Main Street Capital during the 3rd quarter worth $689,000. Good Life Advisors LLC purchased a new position in Main Street Capital during the 3rd quarter worth $204,000. Green Square Capital LLC purchased a new position in Main Street Capital during the 2nd quarter worth $203,000. Paloma Partners Management Co purchased a new position in Main Street Capital during the 3rd quarter worth $210,000. Finally, Trexquant Investment LP purchased a new position in Main Street Capital during the 3rd quarter worth $211,000. 23.45% of the stock is currently owned by hedge funds and other institutional investors.
About Main Street Capital
Main Street Capital Corporation is a business development company specializing in long- term equity and debt investments in small and lower middle market companies. The firm focuses on investments in, subordinated loans, private equity, venture debt, mezzanine investments, mature, mid venture, industry consolidation, later stage, late venture, emerging growth, management buyouts, change of control transactions, ownership transitions, recapitalizations, strategic acquisitions, refinancing, business expansion capital, growth financings, family estate planning, and other growth initiatives primarily for later stage businesses.
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