Main Street Capital (NYSE:MAIN) Trading 2.3% Higher – Here’s Why

Main Street Capital Co. (NYSE:MAIN) traded up 2.3% during mid-day trading on Monday . The company traded as high as $54.40 and last traded at $54.19. 243,587 shares changed hands during trading, a decline of 46% from the average session volume of 449,917 shares. The stock had previously closed at $52.95.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Truist Financial lowered their target price on Main Street Capital from $62.00 to $54.00 and set a “hold” rating for the company in a research note on Monday. UBS Group cut their price objective on Main Street Capital from $55.00 to $54.00 and set a “neutral” rating for the company in a report on Thursday, April 17th. Four equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat, Main Street Capital currently has a consensus rating of “Hold” and a consensus price target of $51.00.

Main Street Capital Trading Up 1.7%

The business has a 50 day moving average of $54.72 and a two-hundred day moving average of $56.32. The company has a current ratio of 0.08, a quick ratio of 0.08 and a debt-to-equity ratio of 0.13. The firm has a market cap of $4.77 billion, a P/E ratio of 9.76 and a beta of 0.86.

Main Street Capital (NYSE:MAIN) last posted its quarterly earnings results on Thursday, May 8th. The financial services provider reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.01. Main Street Capital had a return on equity of 13.83% and a net margin of 89.25%. The business had revenue of $137.05 million for the quarter, compared to analysts’ expectations of $137.50 million. Analysts predict that Main Street Capital Co. will post 4.11 earnings per share for the current year.

Main Street Capital Increases Dividend

The company also recently disclosed a monthly dividend, which will be paid on Monday, September 15th. Shareholders of record on Monday, September 8th will be given a dividend of $0.255 per share. This is a boost from Main Street Capital’s previous monthly dividend of $0.25. The ex-dividend date is Monday, September 8th. This represents a $3.06 annualized dividend and a yield of 5.68%. Main Street Capital’s dividend payout ratio (DPR) is presently 50.93%.

Insiders Place Their Bets

In other Main Street Capital news, CEO Dwayne L. Hyzak sold 120,000 shares of the stock in a transaction on Wednesday, March 26th. The stock was sold at an average price of $58.05, for a total transaction of $6,966,000.00. Following the transaction, the chief executive officer now owns 402,371 shares in the company, valued at $23,357,636.55. This trade represents a 22.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider David L. Magdol sold 100,000 shares of the firm’s stock in a transaction on Wednesday, March 26th. The stock was sold at an average price of $58.05, for a total value of $5,805,000.00. Following the completion of the transaction, the insider now owns 377,182 shares in the company, valued at $21,895,415.10. The trade was a 20.96% decrease in their position. The disclosure for this sale can be found here. Company insiders own 4.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MAIN. Raymond James Financial Inc. bought a new position in shares of Main Street Capital in the fourth quarter worth $10,460,000. Invesco Ltd. increased its position in shares of Main Street Capital by 470.4% in the fourth quarter. Invesco Ltd. now owns 139,166 shares of the financial services provider’s stock worth $8,152,000 after purchasing an additional 114,768 shares during the period. Victory Capital Management Inc. bought a new position in shares of Main Street Capital in the first quarter worth $6,205,000. First Trust Advisors LP bought a new position in shares of Main Street Capital in the fourth quarter worth $6,059,000. Finally, Morgan Dempsey Capital Management LLC acquired a new stake in Main Street Capital in the fourth quarter valued at about $6,007,000. Institutional investors own 20.31% of the company’s stock.

About Main Street Capital

Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation, mature, later stage emerging growth.