BlackRock Inc. Makes New $20.94 Million Investment in Main Street Capital Corporation $MAIN

Key Points

• BlackRock bought 403,623 shares of Main Street Capital during the second quarter, worth approximately $20.94 million and representing a 0.43% stake. Institutional investors and hedge funds collectively own 20.31% of the company.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $60.83. Ratings include three Buys and seven Holds, while several firms recently downgraded or adjusted their targets.
• Main Street Capital reported quarterly earnings of $0.97 per share, beating estimates by $0.01, and declared a monthly dividend of $0.265 per share, implying an annualized yield of about 5.5%.

BlackRock Inc. bought a new position in shares of Main Street Capital Corporation (NYSE:MAIN - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 403,623 shares of the financial services provider's stock, valued at approximately $20,940,000. BlackRock Inc. owned 0.43% of Main Street Capital at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Garner Asset Management Corp acquired a new stake in Main Street Capital during the fourth quarter worth approximately $28,000. Smartleaf Asset Management LLC raised its holdings in Main Street Capital by 109.6% in the 2nd quarter. Smartleaf Asset Management LLC now owns 478 shares of the financial services provider's stock valued at $28,000 after acquiring an additional 250 shares in the last quarter. Sankala Group LLC acquired a new position in Main Street Capital in the 4th quarter valued at $29,000. Gilpin Wealth Management LLC bought a new stake in shares of Main Street Capital during the 4th quarter valued at $31,000. Finally, MassMutual Private Wealth & Trust FSB bought a new stake in shares of Main Street Capital during the 2nd quarter valued at $28,000. 20.31% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

MAIN has been the topic of a number of analyst reports. Wall Street Zen downgraded shares of Main Street Capital from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Weiss Ratings downgraded shares of Main Street Capital from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, August 13th. Zacks Research upgraded shares of Main Street Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. Royal Bank Of Canada lowered their price objective on shares of Main Street Capital from $66.00 to $58.00 and set an "outperform" rating for the company in a research report on Thursday, May 14th. Finally, Truist Financial raised their target price on Main Street Capital from $53.00 to $57.00 and gave the company a "hold" rating in a report on Monday, August 10th. Three investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $60.83.

Main Street Capital Price Performance

MAIN stock opened at $57.78 on Thursday. The company has a 50 day simple moving average of $55.41 and a 200 day simple moving average of $54.49. The stock has a market cap of $5.40 billion, a price-to-earnings ratio of 11.65 and a beta of 0.72. Main Street Capital Corporation has a 1 year low of $48.95 and a 1 year high of $67.34. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.05 and a quick ratio of 0.05.

Main Street Capital (NYSE:MAIN - Get Free Report) last issued its earnings results on Thursday, August 6th. The financial services provider reported $0.97 earnings per share for the quarter, beating analysts' consensus estimates of $0.96 by $0.01. The firm had revenue of $327.56 million for the quarter, compared to analyst estimates of $144.59 million. Main Street Capital had a net margin of 78.49% and a return on equity of 11.80%. Research analysts anticipate that Main Street Capital Corporation will post 3.77 EPS for the current fiscal year.

Main Street Capital Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 8th will be paid a $0.265 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date is Tuesday, December 8th. Main Street Capital's dividend payout ratio is presently 64.11%.

Insider Buying and Selling at Main Street Capital

In related news, EVP Jason B. Beauvais sold 6,830 shares of the firm's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $51.73, for a total transaction of $353,315.90. Following the sale, the executive vice president owned 196,185 shares of the company's stock, valued at $10,148,650.05. This trade represents a 3.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Ryan Mchugh acquired 2,550 shares of Main Street Capital stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $59.05 per share, for a total transaction of $150,577.50. Following the transaction, 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 3.83% of the company's stock.

Main Street Capital Profile

Main Street Capital Corporation NYSE: MAIN is a publicly traded business development company that provides flexible debt and equity capital to lower middle market companies in the United States. Headquartered in Houston, Texas, Main Street Capital was formed in 2007 and operates under the Investment Company Act of 1940. The firm's management services are provided by Main Street Capital Management, L.P., which focuses on identifying growing private companies with enterprise values typically between $10 million and $150 million.

Main Street Capital's primary offerings include first-lien senior secured loans, second-lien loans, subordinated debt, and equity co-investments or minority equity positions.

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