Main Street Capital Co. Declares Monthly Dividend of $0.25 (NYSE:MAIN)

Main Street Capital Co. (NYSE:MAIN) declared a monthly dividend on Thursday, February 27th, Wall Street Journal reports. Shareholders of record on Friday, June 6th will be given a dividend of 0.25 per share by the financial services provider on Friday, June 13th. This represents a $3.00 annualized dividend and a yield of 5.31%. The ex-dividend date is Friday, June 6th.

Main Street Capital has raised its dividend by an average of 8.6% annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Main Street Capital has a payout ratio of 78.9% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Analysts expect Main Street Capital to earn $4.06 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 73.9%.

Main Street Capital Stock Performance

Shares of MAIN stock opened at $56.50 on Wednesday. Main Street Capital has a 12-month low of $45.00 and a 12-month high of $63.32. 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 capitalization of $5.03 billion, a price-to-earnings ratio of 10.24 and a beta of 0.86. The business has a 50 day simple moving average of $54.11 and a 200 day simple moving average of $56.76.

Main Street Capital (NYSE:MAIN) last announced 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. 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 during the quarter, compared to analysts’ expectations of $137.50 million. On average, equities research analysts anticipate that Main Street Capital will post 4.11 EPS for the current year.

Insider Buying and Selling

In other news, 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 value of $6,966,000.00. Following the transaction, the chief executive officer now directly owns 402,371 shares of the company’s stock, valued at $23,357,636.55. The trade was a 22.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David L. Magdol sold 100,000 shares of the firm’s stock in a transaction 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 sale, the insider now directly owns 377,182 shares of the company’s stock, valued at $21,895,415.10. This represents a 20.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 4.00% of the company’s stock.

Hedge Funds Weigh In On Main Street Capital

An institutional investor recently raised its position in Main Street Capital stock. NewEdge Advisors LLC boosted its position in shares of Main Street Capital Co. (NYSE:MAIN) by 5,416.7% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,655 shares of the financial services provider’s stock after buying an additional 1,625 shares during the quarter. NewEdge Advisors LLC’s holdings in Main Street Capital were worth $94,000 as of its most recent SEC filing. 20.31% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Wall Street Zen cut shares of Main Street Capital from a “hold” rating to a “sell” rating in a research note on Saturday. Oppenheimer reiterated a “market perform” rating on shares of Main Street Capital in a report on Tuesday, May 13th. UBS Group cut their target price on Main Street Capital from $55.00 to $54.00 and set a “neutral” rating on the stock in a report on Thursday, April 17th. Finally, Truist Financial decreased their price target on Main Street Capital from $62.00 to $54.00 and set a “hold” rating for the company in a research note on Monday, May 12th. One research 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.com, Main Street Capital currently has an average rating of “Hold” and a consensus target price of $52.80.

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.