Main Street Capital Target of Unusually High Options Trading (NYSE:MAIN)

Main Street Capital Corporation (NYSE:MAIN) was the target of unusually large options trading on Tuesday. Investors purchased 7,461 put options on the stock. This represents an increase of approximately 723% compared to the average daily volume of 907 put options.

Main Street Capital Price Performance

MAIN opened at $58.54 on Wednesday. Main Street Capital has a fifty-two week low of $48.95 and a fifty-two week high of $67.34. The firm has a 50-day moving average of $54.46 and a 200 day moving average of $54.60. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.05 and a current ratio of 0.05. The firm has a market cap of $5.47 billion, a P/E ratio of 11.80 and a beta of 0.71.

Main Street Capital (NYSE:MAIN) last announced its quarterly earnings data on Thursday, August 6th. The financial services provider reported $0.97 EPS for the quarter, topping the consensus estimate of $0.96 by $0.01. Main Street Capital had a net margin of 78.49% and a return on equity of 11.80%. The business had revenue of $327.56 million for the quarter, compared to analyst estimates of $144.59 million. On average, research analysts expect that Main Street Capital will post 3.77 EPS for the current year.

Main Street Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 8th will be issued a $0.265 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date of this dividend is Tuesday, December 8th. Main Street Capital’s payout ratio is 64.11%.

Insiders Place Their Bets

In related news, CAO Ryan Mchugh purchased 2,550 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average cost of $59.05 per share, with a total value of $150,577.50. Following the transaction, the chief accounting officer owned 22,647 shares of the company’s stock, valued at $1,337,305.35. This represents a 12.69% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jason B. Beauvais sold 6,830 shares of the firm’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $51.73, for a total value of $353,315.90. Following the transaction, the executive vice president owned 196,185 shares in the company, valued at approximately $10,148,650.05. This trade represents a 3.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 3.83% of the company’s stock.

Hedge Funds Weigh In On Main Street Capital

Several institutional investors and hedge funds have recently bought and sold shares of MAIN. Prospera Financial Services Inc grew its position in shares of Main Street Capital by 0.4% in the 4th quarter. Prospera Financial Services Inc now owns 48,229 shares of the financial services provider’s stock worth $2,915,000 after buying an additional 194 shares during the last quarter. SMH Capital Advisors Inc. raised its holdings in shares of Main Street Capital by 1.1% during the fourth quarter. SMH Capital Advisors Inc. now owns 18,884 shares of the financial services provider’s stock valued at $1,140,000 after acquiring an additional 206 shares in the last quarter. Sequoia Financial Advisors LLC lifted its stake in Main Street Capital by 3.5% in the first quarter. Sequoia Financial Advisors LLC now owns 6,142 shares of the financial services provider’s stock worth $325,000 after acquiring an additional 207 shares during the period. Lido Advisors LLC boosted its holdings in Main Street Capital by 1.7% in the fourth quarter. Lido Advisors LLC now owns 12,520 shares of the financial services provider’s stock valued at $794,000 after acquiring an additional 209 shares in the last quarter. Finally, Freedom Financial Partners LLC boosted its holdings in Main Street Capital by 4.1% in the first quarter. Freedom Financial Partners LLC now owns 5,577 shares of the financial services provider’s stock valued at $295,000 after acquiring an additional 221 shares in the last quarter. 20.31% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

MAIN has been the topic of several analyst reports. Wells Fargo & Company boosted their price target on shares of Main Street Capital from $50.00 to $55.00 and gave the stock an “equal weight” rating in a report on Monday, August 10th. Wall Street Zen cut shares of Main Street Capital from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. Weiss Ratings downgraded Main Street Capital from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. Truist Financial upped their target price on Main Street Capital from $53.00 to $57.00 and gave the company a “hold” rating in a report on Monday, August 10th. Finally, Royal Bank Of Canada decreased their price target on Main Street Capital from $66.00 to $58.00 and set an “outperform” rating for the company in a research report on Thursday, May 14th. Three equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Main Street Capital currently has an average rating of “Hold” and a consensus target price of $60.83.

About Main Street Capital

Main Street Capital Corporation (NYSE: MAIN) is a publicly traded business development company that provides flexible debt and equity capital to lower middle market companies in the United States. Headquartered in Houston, Texas, Main Street Capital was formed in 2007 and operates under the Investment Company Act of 1940. The firm’s management services are provided by Main Street Capital Management, L.P., which focuses on identifying growing private companies with enterprise values typically between $10 million and $150 million.

Main Street Capital’s primary offerings include first-lien senior secured loans, second-lien loans, subordinated debt, and equity co-investments or minority equity positions.