Main Street Capital (MAIN) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Main Street Capital (NYSE:MAIN) from a buy rating to a hold rating in a report issued on Friday.

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 a number of other research reports. National Securities reiterated a neutral rating and set a $38.00 target price on shares of Main Street Capital in a research report on Monday, November 5th. Raymond James upgraded Main Street Capital from a market perform rating to an outperform rating and set a $41.00 target price on the stock in a research report on Monday, November 5th. They noted that the move was a valuation call. Janney Montgomery Scott set a $35.00 target price on Main Street Capital and gave the stock a hold rating in a research report on Friday, November 2nd. Finally, SunTrust Banks reiterated a hold rating and set a $40.00 target price on shares of Main Street Capital in a research report on Friday, August 3rd. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Main Street Capital presently has an average rating of Hold and a consensus price target of $39.50.

Main Street Capital stock opened at $38.64 on Friday. Main Street Capital has a 1-year low of $34.37 and a 1-year high of $40.82. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.13 and a current ratio of 0.13. The firm has a market capitalization of $2.33 billion, a price-to-earnings ratio of 16.17 and a beta of 0.81.

Main Street Capital (NYSE:MAIN) last posted its quarterly earnings results on Thursday, November 1st. The financial services provider reported $0.63 earnings per share for the quarter, beating the Zacks’ 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 company had revenue of $58.26 million for the quarter, compared to analysts’ expectations of $59.19 million. During the same period last year, the firm earned $0.60 earnings per share. Main Street Capital’s quarterly revenue was up 12.5% on a year-over-year basis. As a group, analysts anticipate that Main Street Capital will post 2.54 earnings per share for the current fiscal year.

The company also recently announced a dividend, which will be paid on Thursday, December 27th. Stockholders of record on Tuesday, December 18th will be given a dividend of $0.275 per share. The ex-dividend date of this dividend is Monday, December 17th. This is a boost from Main Street Capital’s previous dividend of $0.20. Main Street Capital’s payout ratio is 97.91%.

In other news, Chairman Vincent D. Foster bought 25,869 shares of the business’s stock in a transaction dated 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 completion of the transaction, the chairman now owns 1,583,565 shares of the company’s stock, valued at $61,220,622.90. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 5.31% of the stock is currently owned by insiders.

A number of hedge funds have recently modified their holdings of MAIN. Green Square Capital LLC acquired a new position in Main Street Capital in the 2nd quarter valued at about $203,000. Good Life Advisors LLC acquired a new position in Main Street Capital in the 3rd quarter valued at about $204,000. Paloma Partners Management Co acquired a new position in Main Street Capital in the 3rd quarter valued at about $210,000. Trexquant Investment LP acquired a new position in Main Street Capital in the 3rd quarter valued at about $211,000. Finally, Comerica Bank acquired a new position in Main Street Capital in the 3rd quarter valued at about $221,000. Hedge funds and other institutional investors own 23.45% of the company’s stock.

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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