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

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. Stockholders 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) dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date 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 fall. 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 $1.34 during trading hours on Monday, reaching $64.44. The company had a trading volume of 507,670 shares, compared to its average volume of 553,557. The company has a quick ratio of 0.09, a current ratio of 0.09 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $5.76 billion, a PE ratio of 10.60 and a beta of 0.88. The stock has a 50-day moving average of $65.35 and a two-hundred day moving average of $59.35. Main Street Capital has a one year low of $47.00 and a one year high of $67.77.

Main Street Capital (NYSE:MAIN - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The financial services provider reported $0.99 earnings per share (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 business had revenue of $143.97 million for the quarter, compared to analyst estimates of $137.23 million. Analysts forecast that Main Street Capital will post 4.11 earnings per share for the current year.

Insider Activity at Main Street Capital

In other news, Director Nicholas Meserve sold 14,000 shares of the company's 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 completion of the sale, the director directly owned 82,383 shares in the company, valued at $5,532,018.45. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Jason B. Beauvais sold 13,664 shares of the company's stock in a transaction on Friday, June 27th. The stock was sold at an average price of $59.37, for a total value of $811,231.68. Following the completion of the sale, the executive vice president owned 181,526 shares of the company's stock, valued at $10,777,198.62. This trade 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 Trading of Main Street Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MAIN. Smartleaf Asset Management LLC increased 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 valued at $28,000 after buying an additional 250 shares during the period. Financial Network Wealth Advisors LLC purchased a new stake in shares of Main Street Capital during the first quarter worth about $39,000. Spire Wealth Management purchased a new stake in Main Street Capital during the 1st quarter valued at about $40,000. Wellington Shields & Co. LLC purchased a new stake in shares of Main Street Capital in the 1st quarter valued at approximately $41,000. Finally, Quarry LP acquired a new position in shares of Main Street Capital in the 1st quarter worth approximately $48,000. 20.31% of the stock is owned by hedge funds and other 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.