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

Key Points

• Main Street Capital Corporation announced a quarterly dividend of $0.30 per share, with an impressive dividend yield of 6.35%, set to be paid on September 26th.
• The company has a current payout ratio of 78.9%, indicating that while the dividend is currently covered by earnings, future declines in earnings could jeopardize this coverage.
• Shares of Main Street Capital recently opened at $66.12, with the stock showing a wide trading range over the past year, hitting a low of $47.00 and a high of $67.77.

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 dividend 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 decline. Equities 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 Stock Performance

NYSE:MAIN traded up $0.30 during midday trading on Tuesday, reaching $64.58. The stock had a trading volume of 187,066 shares, compared to its average volume of 552,975. The firm has a fifty day simple moving average of $65.36 and a two-hundred day simple moving average of $59.39. Main Street Capital has a 12-month low of $47.00 and a 12-month high of $67.77. 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 stock has a market cap of $5.78 billion, a P/E ratio of 10.64 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 earnings per share 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 firm had revenue of $143.97 million for the quarter, compared to analyst estimates of $137.23 million. On average, equities analysts expect that Main Street Capital will post 4.11 EPS for the current year.

Insider Activity

In related news, Director Nicholas Meserve sold 14,000 shares of the business's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $67.15, for a total value of $940,100.00. Following the sale, the director directly owned 82,383 shares in the company, valued at $5,532,018.45. The trade was a 14.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Jason B. Beauvais sold 13,664 shares of the business's stock in a transaction dated 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. 4.09% of the stock is owned by insiders.

Institutional Investors Weigh In On Main Street Capital

Institutional investors and hedge funds have recently made changes to their positions in the business. Osaic Holdings Inc. raised its stake in Main Street Capital by 0.4% in the 2nd quarter. Osaic Holdings Inc. now owns 156,952 shares of the financial services provider's stock valued at $9,277,000 after purchasing an additional 640 shares during the last quarter. Squarepoint Ops LLC raised its stake in 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 valued at $1,541,000 after purchasing an additional 6,828 shares during the last quarter. B. Riley Wealth Advisors Inc. acquired a new position in Main Street Capital in the 2nd quarter valued at about $1,685,000. Newbridge Financial Services Group Inc. raised its stake in Main Street Capital by 30.3% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 3,318 shares of the financial services provider's stock valued at $196,000 after purchasing an additional 771 shares during the last quarter. Finally, State of Wyoming raised its stake in Main Street Capital by 47.0% in 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 last quarter. 20.31% of the stock is currently 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.