Main Street Capital (NYSE:MAIN) Issues Quarterly Earnings Results

Main Street Capital (NYSE:MAIN) released its earnings results on Thursday. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.03), Zacks reports. Main Street Capital had a return on equity of 11.56% and a net margin of 76.98%. The business had revenue of $142.53 million for the quarter, compared to analyst estimates of $145.67 million.

Main Street Capital Price Performance

Shares of MAIN stock traded up $0.11 during midday trading on Friday, reaching $56.93. 498,991 shares of the company traded hands, compared to its average volume of 477,730. The firm’s 50 day simple moving average is $55.53 and its two-hundred day simple moving average is $55.41. Main Street Capital has a 1-year low of $48.95 and a 1-year high of $65.23. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.05 and a quick ratio of 0.05. The firm has a market cap of $5.32 billion, a PE ratio of 14.69 and a beta of 0.73.

Main Street Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Monday, March 15th. Shareholders of record on Monday, March 8th will be issued a $0.27 dividend. The ex-dividend date of this dividend is Monday, March 8th. This represents a $3.24 dividend on an annualized basis and a yield of 5.7%. Main Street Capital’s dividend payout ratio (DPR) is 64.11%.

Trending Headlines about Main Street Capital

Here are the key news stories impacting Main Street Capital this week:

• Positive Sentiment: Main Street raised its monthly dividend to $0.11 per share, a shareholder-friendly move that may support the stock’s appeal to income investors. Main Street Capital declares $0.11 dividend
• Positive Sentiment: One report said GAAP profit was $1.25 per share, 11.9% above analysts’ expectations, providing a brighter counterpoint to the shortfall in recurring investment income. Main Street Capital reports Q3 sales below estimates
• Neutral Sentiment: Management’s results were described as within preliminary estimates, which may temper the impact of the quarterly misses. The company’s earnings-call transcript is available, but the supplied coverage does not detail further guidance or commentary. Main Street Capital Q3 earnings miss but fall within preliminary estimates
• Negative Sentiment: Net investment income was $0.89 per share, below analyst estimates, and revenue of $142.5 million fell short of the $145.7 million consensus. Revenue grew only 1.9% year over year, while net investment income was down from $0.97 per share a year earlier. These results could weigh on expectations for the company’s ongoing earnings power. Main Street Capital Q3 earnings and revenues miss estimates

Analysts Set New Price Targets

MAIN has been the subject of a number of analyst reports. Zacks Research raised Main Street Capital from a “strong sell” rating to a “hold” rating in a research note on Monday, July 20th. Citigroup restated a “market outperform” rating on shares of Main Street Capital in a research note on Monday, August 10th. Truist Financial upped their price objective on Main Street Capital from $53.00 to $57.00 and gave the stock a “hold” rating in a report on Monday, August 10th. Wells Fargo & Company upgraded Main Street Capital from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $55.00 to $60.00 in a research report on Tuesday, September 29th. Finally, UBS Group cut their price objective on Main Street Capital from $62.00 to $57.00 and set a “neutral” rating for the company in a research report on Friday, October 9th. Five equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $61.00.

Insider Activity at Main Street Capital

In other news, CAO Ryan Mchugh purchased 2,550 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average price of $59.05 per share, for a total transaction of $150,577.50. Following the acquisition, the chief accounting officer directly owned 22,647 shares in the company, valued at approximately $1,337,305.35. The trade was a 12.69% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 3.83% of the stock is owned by company insiders.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company that provides customized debt and equity financing to privately held businesses. The company primarily invests in lower middle-market companies and also makes private loan investments in larger middle-market businesses.

Its investment activities include first-lien, second-lien and subordinated debt, as well as equity investments and other securities. Main Street seeks to provide flexible, long-term capital to support acquisitions, recapitalizations, growth initiatives and other corporate financing needs.