Main Street Capital (NYSE:MAIN) Posts Earnings Results, Misses Expectations By $0.03 EPS

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

Main Street Capital Stock Performance

Shares of NYSE MAIN traded up $0.11 during mid-day trading on Friday, hitting $56.93. 498,991 shares of the company were exchanged, compared to its average volume of 477,730. The company has a quick ratio of 0.05, a current ratio of 0.05 and a debt-to-equity ratio of 0.11. The stock has a 50 day simple moving average of $55.53 and a 200-day simple moving average of $55.41. Main Street Capital has a 1-year low of $48.95 and a 1-year high of $65.23. The firm has a market cap of $5.32 billion, a price-to-earnings ratio of 14.69 and a beta of 0.73.

Main Street Capital Dividend Announcement

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wall Street Zen cut Main Street Capital from a “hold” rating to a “sell” rating in a research note on Sunday, October 11th. Weiss Ratings raised Main Street Capital from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, September 3rd. Wells Fargo & Company upgraded shares of Main Street Capital from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $55.00 to $60.00 in a research report on Tuesday, September 29th. Zacks Research raised shares of Main Street Capital from a “strong sell” rating to a “hold” rating in a report on Monday, July 20th. Finally, Truist Financial lifted their target price on shares of Main Street Capital from $53.00 to $57.00 and gave the company a “hold” rating in a report on Monday, August 10th. Five research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $61.00.

Insider Transactions at Main Street Capital

In other news, CAO Ryan Mchugh acquired 2,550 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were bought at an average cost of $59.05 per share, with a total value of $150,577.50. Following the purchase, the chief accounting officer owned 22,647 shares of the company’s stock, valued at $1,337,305.35. This represents a 12.69% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 3.83% of the company’s stock.

Key Headlines Impacting 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

About Main Street Capital

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.