Sound Income Strategies LLC Has $6.13 Million Stock Holdings in Main Street Capital Corporation $MAIN

Key Points

• Sound Income Strategies LLC sharply cut its Main Street Capital stake by 64.8% in the first quarter, selling 217,879 shares and leaving it with 118,152 shares worth about $6.13 million.
• Main Street Capital reported weaker-than-expected quarterly results, with EPS of $0.93 versus the $1.04 estimate and revenue of $73.44 million, well below analyst expectations.
• The company also announced a monthly dividend of $0.265 per share, implying an annualized yield of about 6.1%, while analysts currently hold a consensus “Hold” rating with an average price target of $59.14.

Sound Income Strategies LLC reduced its stake in Main Street Capital Corporation (NYSE:MAIN - Free Report) by 64.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 118,152 shares of the financial services provider's stock after selling 217,879 shares during the period. Sound Income Strategies LLC owned 0.13% of Main Street Capital worth $6,133,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the stock. Brighton Jones LLC acquired a new stake in shares of Main Street Capital in the 4th quarter valued at about $304,000. NewEdge Advisors LLC raised its stake in Main Street Capital by 5,416.7% during the 1st quarter. NewEdge Advisors LLC now owns 1,655 shares of the financial services provider's stock worth $94,000 after buying an additional 1,625 shares during the period. Guggenheim Capital LLC boosted its holdings in Main Street Capital by 4.8% in the second quarter. Guggenheim Capital LLC now owns 12,492 shares of the financial services provider's stock worth $738,000 after acquiring an additional 570 shares in the last quarter. First Trust Advisors LP boosted its holdings in Main Street Capital by 2.3% in the second quarter. First Trust Advisors LP now owns 188,296 shares of the financial services provider's stock worth $11,128,000 after acquiring an additional 4,317 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in Main Street Capital in the second quarter valued at approximately $228,000. Institutional investors and hedge funds own 20.31% of the company's stock.

Insider Buying and Selling

In other Main Street Capital 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 transaction, the executive vice president directly owned 196,185 shares in the company, valued at approximately $10,148,650.05. This trade represents a 3.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.83% of the company's stock.

Main Street Capital Price Performance

MAIN stock opened at $52.02 on Friday. 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 business has a 50-day simple moving average of $52.05 and a two-hundred day simple moving average of $56.30. The company has a market capitalization of $4.84 billion, a P/E ratio of 10.95 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 issued its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.93 EPS for the quarter, missing the consensus estimate 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 company had revenue of $73.44 million during the quarter, compared to analysts' expectations of $145.23 million. Research analysts expect that Main Street Capital Corporation will post 3.78 EPS for the current fiscal year.

Main Street Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 8th will be given a $0.265 dividend. This represents a c) dividend on an annualized basis and a yield of 6.1%. The ex-dividend date of this dividend is Tuesday, September 8th. Main Street Capital's dividend payout ratio is presently 65.68%.

Wall Street Analyst Weigh In

MAIN has been the subject of several recent research reports. Citizens Jmp decreased their price objective on Main Street Capital from $74.00 to $70.00 and set a "market outperform" rating for the company in a report on Wednesday, April 22nd. Zacks Research cut Main Street Capital from a "hold" rating to a "strong sell" rating in a report on Thursday, May 28th. Royal Bank Of Canada reduced 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 report on Thursday, May 14th. Wall Street Zen lowered shares of Main Street Capital from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Finally, Weiss Ratings lowered shares of Main Street Capital from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 22nd. Three analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $59.14.

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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