Research Analysts’ Recent Ratings Updates for Main Street Capital (MAIN)

Main Street Capital (NYSE: MAIN) has recently received a number of price target changes and ratings updates:

  • 12/7/2018 – Main Street Capital was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $43.00 price target on the stock. 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. “
  • 12/6/2018 – Main Street Capital was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. 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. “
  • 12/1/2018 – Main Street Capital was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $43.00 price target on the stock. 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. “
  • 11/30/2018 – Main Street Capital was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. 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. “
  • 11/21/2018 – Main Street Capital was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $43.00 price target on the stock. 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. “
  • 11/20/2018 – Main Street Capital was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. 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. “
  • 11/7/2018 – Main Street Capital was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $43.00 price target on the stock. 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. “
  • 11/5/2018 – Main Street Capital was upgraded by analysts at Raymond James from a “market perform” rating to an “outperform” rating. They now have a $41.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 11/5/2018 – Main Street Capital had its “neutral” rating reaffirmed by analysts at National Securities. They now have a $38.00 price target on the stock. They wrote, “ Main Street posted NII/share of $0.63 for 3Q18, matching our estimate and comfortably ahead of the $0.57/share regular quarterly dividend. The company guided towards DNII/share (NII + share-based compensation) of $0.63-$0.65 for 4Q18, which we think is a roughly $0.04/share difference from NII (NII/share likely $0.59-$0.61).

     We expect the guidance being lower than 3Q18 numbers is likely in anticipation of reduced fee income which was $3.4 million for 3Q18 compared with $1.9 million the quarter prior. Notably, total repayments increased Q/Q to $198.9 million from $148.0 million which we expect drove the elevated fee income. For 4Q18, we model total repayments to decline to $146.1 million and fee income to fall concomitant with this to $1.7 million.

     The company has decided to phase out its supplemental dividend policy. As a reminder, MAIN typically pays a supplemental dividend in both the second and fourth quarters of the year as a result of its realized gains. The company will begin to reduce the supplemental dividends and increase the base dividend beginning in 2Q19 with the supplemental dividend being reduced to $0.25/share from $0.275/share and the regular dividend being increased to $0.60/share from $0.57/share.

     NAV/share increased 3.1% Q/Q to $24.69 from $23.96 as the positive feedback loop of MAIN being permitted to issue shares significantly above NAV combined with an out-earned dividend and sound asset quality continued to lift NAV. The company sold $18.6 million of equity in 3Q18 at an average price of $39.71, representing a 66% premium to 2Q18 NAV/share.

     We are revising our 2018 NII/share estimate to $2.52 from $2.55 and our 2019 NII/share estimate to $2.63 from $2.66 and maintaining our NEUTRAL rating and our $38 price target.”
  • 11/2/2018 – Main Street Capital was given a new $35.00 price target on by analysts at Janney Montgomery Scott. They now have a “hold” rating on the stock.

NYSE:MAIN traded down $0.06 during trading hours on Thursday, hitting $37.48. 220,000 shares of the stock were exchanged, compared to its average volume of 249,723. Main Street Capital Co. has a 52-week low of $34.37 and a 52-week high of $40.82. The company has a current ratio of 0.13, a quick ratio of 0.13 and a debt-to-equity ratio of 0.22. The firm has a market cap of $2.28 billion, a P/E ratio of 15.68 and a beta of 0.81.

Main Street Capital (NYSE:MAIN) last posted its quarterly earnings data on Thursday, November 1st. The financial services provider reported $0.63 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.62 by $0.01. The company had revenue of $58.26 million during the quarter, compared to analyst estimates of $59.19 million. Main Street Capital had a return on equity of 10.61% and a net margin of 95.77%. Main Street Capital’s quarterly revenue was up 12.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.60 EPS. On average, research analysts forecast that Main Street Capital Co. will post 2.54 earnings per share for the current year.

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

In related news, Chairman Vincent D. Foster bought 25,869 shares of the stock in a transaction dated Friday, November 16th. The shares were acquired at an average cost of $38.66 per share, for a total transaction of $1,000,095.54. Following the acquisition, the chairman now directly owns 1,583,565 shares in the company, valued at approximately $61,220,622.90. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 5.31% of the company’s stock.

Several institutional investors have recently modified their holdings of MAIN. Clearbridge Investments LLC boosted its holdings in shares of Main Street Capital by 969,029.0% during the 3rd quarter. Clearbridge Investments LLC now owns 300,430 shares of the financial services provider’s stock worth $11,567,000 after purchasing an additional 300,399 shares during the last quarter. Envestnet Asset Management Inc. acquired a new position in shares of Main Street Capital during the 3rd quarter worth approximately $3,122,000. Bank of Montreal Can boosted its holdings in shares of Main Street Capital by 13.2% during the 3rd quarter. Bank of Montreal Can now owns 642,418 shares of the financial services provider’s stock worth $24,734,000 after purchasing an additional 74,861 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Main Street Capital by 29.3% during the 3rd quarter. Morgan Stanley now owns 212,861 shares of the financial services provider’s stock worth $8,195,000 after purchasing an additional 48,252 shares during the last quarter. Finally, Sound Income Strategies LLC boosted its holdings in shares of Main Street Capital by 10.5% during the 3rd quarter. Sound Income Strategies LLC now owns 393,385 shares of the financial services provider’s stock worth $15,145,000 after purchasing an additional 37,454 shares during the last quarter. Institutional investors and hedge funds own 23.45% of the company’s stock.

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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