Zacks Investment Research upgraded shares of Main Street Capital (NYSE:MAIN) from a hold rating to a buy rating in a research report sent to investors on Wednesday morning. They currently have $43.00 price objective on the financial services provider’s stock.
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. “
MAIN has been the topic of several other research reports. National Securities boosted their price target on Main Street Capital from $35.00 to $38.00 and gave the company a neutral rating in a research report on Wednesday, August 8th. SunTrust Banks restated a hold rating and issued a $40.00 price target on shares of Main Street Capital in a research report on Friday, August 3rd. Janney Montgomery Scott set a $35.00 price target on Main Street Capital and gave the company a hold rating in a research report on Friday, November 2nd. Finally, Raymond James upgraded Main Street Capital from a market perform rating to an outperform rating and set a $41.00 price target on the stock in a research report on Monday, November 5th. They noted that the move was a valuation call. Four equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Main Street Capital currently has a consensus rating of Hold and an average price target of $39.50.
Main Street Capital (NYSE:MAIN) last posted its earnings results on Thursday, November 1st. The financial services provider reported $0.63 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.62 by $0.01. Main Street Capital had a return on equity of 10.61% and a net margin of 95.77%. The business had revenue of $58.26 million during the quarter, compared to the consensus estimate of $59.19 million. During the same period in the previous year, the business earned $0.60 EPS. The business’s quarterly revenue was up 12.5% on a year-over-year basis. On average, equities research analysts expect that Main Street Capital will post 2.54 EPS for the current year.
The company also recently declared a monthly dividend, which will be paid on Tuesday, January 15th. Investors of record on Monday, December 31st will be issued a $0.195 dividend. This represents a $2.34 dividend on an annualized basis and a dividend yield of 6.13%. The ex-dividend date of this dividend is Friday, December 28th. Main Street Capital’s dividend payout ratio is currently 97.91%.
In other news, Chairman Vincent D. Foster purchased 25,869 shares of the stock in a transaction that occurred on Friday, November 16th. The shares were acquired at an average price of $38.66 per share, for a total transaction of $1,000,095.54. Following the acquisition, the chairman now directly owns 1,583,565 shares in the company, valued at approximately $61,220,622.90. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 5.31% of the company’s stock.
Hedge funds have recently bought and sold shares of the stock. Green Square Capital LLC purchased a new stake in Main Street Capital in the 2nd quarter valued at approximately $203,000. Good Life Advisors LLC purchased a new stake in Main Street Capital in the 3rd quarter valued at approximately $204,000. Paloma Partners Management Co purchased a new stake in Main Street Capital in the 3rd quarter valued at approximately $210,000. Trexquant Investment LP purchased a new stake in Main Street Capital in the 3rd quarter valued at approximately $211,000. Finally, Comerica Bank purchased a new stake in Main Street Capital in the 3rd quarter valued at approximately $221,000. 23.20% 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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