LGT Fund Management Co Ltd. Purchases New Holdings in Main Street Capital Corporation $MAIN

Key Points

• LGT Fund Management disclosed a new first-quarter position in Main Street Capital, buying 27,752 shares valued at about $1.47 million.
• Analysts have become more cautious on the stock, with multiple firms cutting price targets and ratings; the consensus view is now “Hold” with an average target price of $59.14.
• Main Street Capital reported Q1 earnings of $0.93 per share, missing expectations, and also announced a monthly dividend of $0.265 per share to be paid on September 15, implying a roughly 6.0% yield.

LGT Fund Management Co Ltd. acquired a new position in Main Street Capital Corporation (NYSE:MAIN - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 27,752 shares of the financial services provider's stock, valued at approximately $1,470,000.

A number of other hedge funds have also recently bought and sold shares of MAIN. Global Assets Advisory LLC acquired a new stake in shares of Main Street Capital in the 1st quarter valued at $170,000. Carnegie Investment Counsel acquired a new position in shares of Main Street Capital during the first quarter valued at $575,000. Fifth Third Bancorp bought a new position in Main Street Capital in the first quarter valued at about $57,000. Sequoia Financial Advisors LLC boosted its holdings in Main Street Capital by 3.5% in the first quarter. Sequoia Financial Advisors LLC now owns 6,142 shares of the financial services provider's stock valued at $325,000 after acquiring an additional 207 shares during the last quarter. Finally, Whipplewood Advisors LLC acquired a new stake in Main Street Capital in the first quarter worth about $276,000. 20.31% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have weighed in on MAIN. Truist Financial dropped their price objective on Main Street Capital from $60.00 to $53.00 and set a "hold" rating for the company in a report on Tuesday, May 19th. Weiss Ratings cut shares of Main Street Capital from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, May 22nd. Royal Bank Of Canada dropped their price target on shares of Main Street Capital from $66.00 to $58.00 and set an "outperform" rating for the company in a research note on Thursday, May 14th. Citizens Jmp cut their price objective on shares of Main Street Capital from $74.00 to $70.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 22nd. Finally, Wall Street Zen cut shares of Main Street Capital from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Main Street Capital has an average rating of "Hold" and an average target price of $59.14.

Insider Activity at Main Street Capital

In other news, EVP Jason B. Beauvais sold 6,830 shares of Main Street Capital stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $51.73, for a total transaction of $353,315.90. Following the transaction, the executive vice president owned 196,185 shares in the company, valued at $10,148,650.05. The trade was a 3.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.83% of the stock is currently owned by corporate insiders.

Main Street Capital Stock Up 0.0%

Shares of NYSE:MAIN opened at $52.87 on Monday. The company has a 50 day moving average price of $51.79 and a two-hundred day moving average price of $55.95. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.06 and a current ratio of 0.06. The company has a market capitalization of $4.92 billion, a PE ratio of 11.13 and a beta of 0.72. Main Street Capital Corporation has a 52 week low of $48.95 and a 52 week high of $67.77.

Main Street Capital (NYSE:MAIN - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.93 earnings per share for the quarter, missing analysts' consensus estimates of $1.04 by ($0.11). Main Street Capital had a return on equity of 12.01% and a net margin of 74.86%.The firm had revenue of $73.44 million for the quarter, compared to the consensus estimate of $145.23 million. Analysts forecast that Main Street Capital Corporation will post 3.78 earnings per share for the current year.

Main Street Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.265 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a c) dividend on an annualized basis and a dividend yield of 6.0%. Main Street Capital's dividend payout ratio (DPR) is currently 66.95%.

About Main Street Capital

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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