Main Street Capital (NYSE:MAIN) Downgraded by Wall Street Zen to Sell

Wall Street Zen cut shares of Main Street Capital (NYSE:MAIN) from a hold rating to a sell rating in a research note published on Saturday.

Several other equities research analysts also recently issued reports on the company. Truist Financial lowered their price target on Main Street Capital from $62.00 to $54.00 and set a “hold” rating on the stock in a research report on Monday, May 12th. UBS Group decreased their target price on Main Street Capital from $55.00 to $54.00 and set a “neutral” rating on the stock in a research report on Thursday, April 17th. Finally, Oppenheimer reissued a “market perform” rating on shares of Main Street Capital in a research report on Tuesday, May 13th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $52.80.

Main Street Capital Price Performance

NYSE MAIN opened at $56.94 on Friday. Main Street Capital has a fifty-two week low of $45.00 and a fifty-two week high of $63.32. The stock’s 50-day moving average is $54.17 and its two-hundred day moving average is $56.70. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.08 and a quick ratio of 0.08. The firm has a market cap of $5.07 billion, a P/E ratio of 10.31 and a beta of 0.86.

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

Main Street Capital Increases Dividend

The business also recently disclosed a monthly dividend, which will be paid on Monday, September 15th. Shareholders of record on Monday, September 8th will be issued a dividend of $0.255 per share. This represents a $3.06 dividend on an annualized basis and a yield of 5.37%. This is an increase from Main Street Capital’s previous monthly dividend of $0.25. The ex-dividend date is Monday, September 8th. Main Street Capital’s payout ratio is presently 50.93%.

Insider Activity

In related news, insider David L. Magdol sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 26th. The shares were 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Dwayne L. Hyzak sold 120,000 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the chief executive officer now owns 402,371 shares of the company’s stock, valued at $23,357,636.55. This trade represents a 22.97% decrease in their position. The disclosure for this sale can be found here. 4.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Main Street Capital

Institutional investors have recently bought and sold shares of the business. Wealthstar Advisors LLC acquired a new stake in Main Street Capital during the 4th quarter worth $1,326,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors acquired a new position in shares of Main Street Capital in the 4th quarter valued at $957,000. Nomura Asset Management Co. Ltd. grew its holdings in shares of Main Street Capital by 270.9% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 9,301 shares of the financial services provider’s stock valued at $545,000 after buying an additional 6,793 shares during the period. AssuredPartners Investment Advisors LLC acquired a new position in shares of Main Street Capital in the 4th quarter valued at $385,000. Finally, Morgan Dempsey Capital Management LLC acquired a new position in Main Street Capital in the 4th quarter worth $6,007,000. Institutional investors and hedge funds own 20.31% of the company’s stock.

Main Street Capital Company Profile

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.