Main Street Capital (NYSE:MAIN) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

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

Main Street Capital Price Performance

Main Street Capital stock traded up $0.11 during midday trading on Friday, reaching $56.93. 498,991 shares of the stock traded hands, compared to its average volume of 477,730. The stock’s fifty day moving average is $55.53 and its 200-day moving average is $55.41. Main Street Capital has a 12 month low of $48.95 and a 12 month high of $65.23. The stock has a market cap of $5.32 billion, a P/E ratio of 14.69 and a beta of 0.73. The company has a quick ratio of 0.05, a current ratio of 0.05 and a debt-to-equity ratio of 0.11.

Main Street Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Monday, March 15th. Investors of record on Monday, March 8th will be given a $0.27 dividend. This represents a $3.24 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date is Monday, March 8th. Main Street Capital’s payout ratio is currently 64.11%.

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

Analyst Upgrades and Downgrades

Several research firms have recently commented on MAIN. Truist Financial raised their price objective on Main Street Capital from $53.00 to $57.00 and gave the stock a “hold” rating in a research note on Monday, August 10th. Weiss Ratings raised Main Street Capital from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, September 3rd. Citigroup reiterated a “market outperform” rating on shares of Main Street Capital in a research note on Monday, August 10th. UBS Group reduced their target price on shares of Main Street Capital from $62.00 to $57.00 and set a “neutral” rating for the company in a report on Friday, October 9th. Finally, Wall Street Zen lowered shares of Main Street Capital from a “hold” rating to a “sell” rating in a report on Sunday, October 11th. Five investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $61.00.

Insiders Place Their Bets

In other news, CAO Ryan Mchugh acquired 2,550 shares of Main Street Capital stock in a transaction on Thursday, August 13th. The shares were acquired at an average price of $59.05 per share, with a total value of $150,577.50. Following the purchase, the chief accounting officer directly owned 22,647 shares in the company, valued at $1,337,305.35. The trade was a 12.69% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 3.83% of the stock is owned by corporate insiders.

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.