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

Key Points

• Main Street Capital Corporation plans to distribute a dividend of $0.30 per share on September 26th, with an ex-dividend date set for September 19th, providing a substantial yield of 638.0%.
• The company's current payout ratio is 78.9%, but future earnings expectations suggest a slightly reduced payout ratio of 73.9% for the next fiscal year, potentially affecting dividend sustainability.
• Insider trading activity included recent sales of shares by executives at varying prices, reflecting shifts in insider holdings and signaling potential changes in management outlook.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) announced a quarterly dividend on Monday, August 4th, investing.com reports. Investors of record on Wednesday, October 8th will be given 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 of this dividend 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 tumble. Research 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 trading on Friday, reaching $65.85. 1,944,787 shares of the company traded hands, compared to its average volume of 495,497. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.09 and a current ratio of 0.09. The stock's 50 day moving average price is $65.35 and its two-hundred day moving average price is $59.33. The company has a market cap of $5.89 billion, a price-to-earnings ratio of 10.85 and a beta of 0.88. Main Street Capital has a 1-year low of $47.00 and a 1-year high of $67.77.

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

Insider Activity at Main Street Capital

In related news, Director Nicholas Meserve sold 14,000 shares of the firm'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 value of $940,100.00. Following the completion of the transaction, the director directly owned 82,383 shares of the company's stock, valued at approximately $5,532,018.45. This trade represents a 14.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Jason B. Beauvais sold 13,664 shares of the stock in a transaction that occurred 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 sale, the executive vice president owned 181,526 shares in the company, valued at $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. 4.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Main Street Capital

Large investors have recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Main Street Capital by 50.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 8,261 shares of the financial services provider's stock valued at $468,000 after purchasing an additional 2,756 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. increased its holdings in Main Street Capital by 10.1% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 242,857 shares of the financial services provider's stock valued at $13,736,000 after buying an additional 22,340 shares during the last quarter. Mackenzie Financial Corp purchased a new stake in Main Street Capital during the first quarter valued at approximately $578,000. Segment Wealth Management LLC boosted its position in shares of Main Street Capital by 134.3% in the first quarter. Segment Wealth Management LLC now owns 117,994 shares of the financial services provider's stock worth $6,674,000 after purchasing an additional 67,626 shares during the period. Finally, Victory Capital Management Inc. bought a new position in shares of Main Street Capital in the first quarter worth approximately $6,205,000. Institutional investors own 20.31% of the company's stock.

About Main Street Capital

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.