Main Street Capital Corporation Plans Quarterly Dividend of $0.30 (NYSE:MAIN)

Key Points

• Main Street Capital Corporation declared a dividend of $0.30 per share, with an impressive yield of 635.0%, payable to shareholders of record on September 22nd.
• The company has a payout ratio of 78.9%, indicating that its current dividend is covered by earnings, though future coverage may be at risk if earnings decline.
• Main Street Capital's stock recently traded at $65.27, with a market capitalization of $5.84 billion and a price-to-earnings ratio of 10.75.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) declared a quarterly dividend on Monday, August 4th, investing.com reports. Stockholders of record on Wednesday, October 8th will be paid a dividend of 0.30 per share by the financial services provider on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, October 8th.

Main Street Capital has a payout ratio of 78.9% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect Main Street Capital to earn $4.06 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 73.9%.

Main Street Capital Price Performance

NYSE MAIN traded down $1.52 on Monday, reaching $64.26. The company's stock had a trading volume of 757,604 shares, compared to its average volume of 563,715. The firm has a market cap of $5.75 billion, a PE ratio of 16.36 and a beta of 0.88. The business has a 50-day moving average price of $65.36 and a 200 day moving average price of $59.39. Main Street Capital has a 52 week low of $47.00 and a 52 week high of $67.77. The company has a current ratio of 0.09, a quick ratio of 0.09 and a debt-to-equity ratio of 0.12.

Main Street Capital (NYSE:MAIN - Get Free Report) last posted its earnings results on Thursday, August 7th. The financial services provider reported $0.99 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.99. Main Street Capital had a net margin of 96.16% and a return on equity of 12.70%. The company had revenue of $143.97 million during the quarter, compared to analysts' expectations of $137.23 million. Sell-side analysts expect that Main Street Capital will post 4.11 EPS for the current year.

Insider Buying and Selling

In other Main Street Capital news, Director Nicholas Meserve sold 14,000 shares of the business's stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $67.15, for a total transaction of $940,100.00. Following the sale, the director directly owned 82,383 shares of the company's stock, valued at $5,532,018.45. The trade was a 14.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Jason B. Beauvais sold 13,664 shares of the stock in a transaction on Friday, June 27th. The stock was sold at an average price of $59.37, for a total transaction of $811,231.68. Following the transaction, the executive vice president directly owned 181,526 shares in the company, valued at approximately $10,777,198.62. This represents a 7.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 4.09% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. increased its stake in shares of Main Street Capital by 0.4% in the second quarter. Osaic Holdings Inc. now owns 156,952 shares of the financial services provider's stock worth $9,277,000 after purchasing an additional 640 shares in the last quarter. Squarepoint Ops LLC lifted its holdings in shares of Main Street Capital by 35.5% in the 2nd quarter. Squarepoint Ops LLC now owns 26,074 shares of the financial services provider's stock worth $1,541,000 after acquiring an additional 6,828 shares during the last quarter. B. Riley Wealth Advisors Inc. purchased a new position in shares of Main Street Capital in the second quarter worth $1,685,000. Newbridge Financial Services Group Inc. increased its stake in shares of Main Street Capital by 30.3% in the second quarter. Newbridge Financial Services Group Inc. now owns 3,318 shares of the financial services provider's stock worth $196,000 after buying an additional 771 shares during the period. Finally, State of Wyoming increased its position in Main Street Capital by 47.0% during the 2nd quarter. State of Wyoming now owns 4,026 shares of the financial services provider's stock valued at $238,000 after purchasing an additional 1,287 shares during the period. 20.31% of the stock is owned by institutional investors.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation, mature, later stage emerging growth.