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

Key Points

• Main Street Capital Corporation announced a dividend of $0.30 per share, with a dividend yield of 645.0%, payable on September 26th.
• The company has a payout ratio of 78.9% and is projected to maintain its annual dividend of $3.00 with an expected future payout ratio of 73.9% based on estimated earnings of $4.06 per share next year.
• Recent insider selling has occurred, with significant shares sold by executives, indicating a decrease in their ownership positions in the company.

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) annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Wednesday, October 8th.

Main Street Capital has a payout ratio of 78.9% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities 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 $0.29 during mid-day trading on Friday, hitting $65.85. The stock had a trading volume of 1,944,787 shares, compared to its average volume of 495,497. The firm's 50 day moving average is $65.35 and its 200 day moving average is $59.33. Main Street Capital has a twelve month low of $47.00 and a twelve month high of $67.77. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.09 and a quick ratio of 0.09. The stock has a market capitalization of $5.89 billion, a price-to-earnings ratio of 10.85 and a beta of 0.88.

Main Street Capital (NYSE:MAIN - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The financial services provider reported $0.99 EPS for the quarter, meeting the consensus estimate of $0.99. Main Street Capital had a return on equity of 12.70% and a net margin of 96.16%.The firm had revenue of $143.97 million during the quarter, compared to the consensus estimate of $137.23 million. Equities research analysts forecast that Main Street Capital will post 4.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Jason B. Beauvais sold 13,664 shares of Main Street Capital 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 completion of the transaction, the executive vice president directly owned 181,526 shares of the company's stock, valued at approximately $10,777,198.62. The trade was a 7.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Nicholas Meserve sold 14,000 shares of Main Street Capital stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $67.15, for a total value of $940,100.00. Following the transaction, the director directly owned 82,383 shares of the company's stock, valued at approximately $5,532,018.45. This represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. 4.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Main Street Capital

Several hedge funds and other institutional investors have recently bought and sold shares of MAIN. Smartleaf Asset Management LLC raised its holdings in Main Street Capital by 109.6% during the second quarter. Smartleaf Asset Management LLC now owns 478 shares of the financial services provider's stock worth $28,000 after purchasing an additional 250 shares during the last quarter. Financial Network Wealth Advisors LLC acquired a new position in Main Street Capital during the first quarter worth $39,000. Spire Wealth Management acquired a new position in Main Street Capital during the first quarter worth $40,000. Wellington Shields & Co. LLC acquired a new position in shares of Main Street Capital in the first quarter worth $41,000. Finally, Quarry LP acquired a new position in shares of Main Street Capital in the first quarter worth $48,000. 20.31% of the stock is owned by institutional investors and hedge funds.

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.