National Securities reissued their sell rating on shares of Main Street Capital Co. (NYSE:MAIN) in a report published on Monday, November 6th. The firm currently has a $33.00 price objective on the financial services provider’s stock.
“• MAIN posted NII/share of $0.60 for 3Q17, exceeding our estimate of $0.58 and consensus estimates of $0.57. Fee income was down to $1.9 million from $3.1 million Q/Q but dividend income increased significantly to $10.1 million from $8.1 million with roughly $1.7 million being considered “non-recurring”.
• NAV/share was up 1.7% on the quarter largely from an out-earned dividend and unrealized appreciation, partially offset by net realized losses of $10.7 million. The company sold $40.0 million of stock under its ATM (at-the-market) program during the quarter at an average price of $39.58, representing a whopping 75% premium to 2Q17 NAV/share. We expect the highly accretive issuances to continue on a flow basis with total D/E ranging from 0.64x – 0.69x through the end of 2018, by our estimates.
• Asset quality remains sound with non-accruals at cost increasing slightly Q/Q to $55.2 million or 2.7% of the portfolio from $51.0 million or 2.5%. One new company, CapFusion, LLC, was placed on non-accrual status with an amortized cost of $11.5 million.
• While we continue to hold Main Street’s management in high esteem and respect the performance of the company, at nearly 80% above NAV/share, we find the valuation to be untenable.
• We are revising our 2017 NII/share estimate to $2.33 from $2.31 and are maintaining our 2018 NII/share estimate of $2.42.,” the firm’s analyst commented.
A number of other research firms have also recently commented on MAIN. ValuEngine upgraded Main Street Capital from a hold rating to a buy rating in a research note on Friday, September 1st. BidaskClub upgraded Main Street Capital from a hold rating to a buy rating in a research note on Thursday, August 10th. Finally, Zacks Investment Research raised Main Street Capital from a hold rating to a buy rating and set a $45.00 price objective on the stock in a research report on Thursday, August 10th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $39.15.
Main Street Capital (NYSE:MAIN) last released its quarterly earnings data on Thursday, November 2nd. The financial services provider reported $0.60 EPS for the quarter, beating analysts’ consensus estimates of $0.57 by $0.03. Main Street Capital had a return on equity of 10.72% and a net margin of 67.39%. The firm had revenue of $51.79 million for the quarter, compared to analysts’ expectations of $50.89 million. During the same period in the prior year, the firm posted $0.58 earnings per share. The firm’s quarterly revenue was up 11.1% on a year-over-year basis. equities research analysts forecast that Main Street Capital will post 2.33 earnings per share for the current fiscal year.
The firm also recently announced a monthly dividend, which will be paid on Thursday, February 15th. Investors of record on Friday, January 19th will be issued a $0.19 dividend. This represents a $2.28 annualized dividend and a yield of 5.64%. The ex-dividend date of this dividend is Thursday, January 18th. Main Street Capital’s dividend payout ratio (DPR) is presently 80.57%.
A number of large investors have recently bought and sold shares of MAIN. Ameriprise Financial Inc. increased its holdings in Main Street Capital by 54.8% in the first quarter. Ameriprise Financial Inc. now owns 27,523 shares of the financial services provider’s stock valued at $1,054,000 after buying an additional 9,739 shares during the last quarter. California Public Employees Retirement System increased its holdings in Main Street Capital by 746.5% in the first quarter. California Public Employees Retirement System now owns 107,500 shares of the financial services provider’s stock valued at $4,114,000 after buying an additional 94,800 shares during the last quarter. PNC Financial Services Group Inc. increased its holdings in Main Street Capital by 75.0% in the first quarter. PNC Financial Services Group Inc. now owns 10,299 shares of the financial services provider’s stock valued at $395,000 after buying an additional 4,415 shares during the last quarter. Capital Investment Advisors LLC increased its holdings in Main Street Capital by 1.2% in the second quarter. Capital Investment Advisors LLC now owns 28,395 shares of the financial services provider’s stock valued at $1,092,000 after buying an additional 350 shares during the last quarter. Finally, Creative Planning increased its holdings in Main Street Capital by 19.5% in the second quarter. Creative Planning now owns 17,595 shares of the financial services provider’s stock valued at $677,000 after buying an additional 2,877 shares during the last quarter. 27.15% of the stock is currently owned by hedge funds and other institutional investors.
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Main Street Capital Company Profile
Main Street Capital Corporation (MSCC) is a principal investment firm. MSCC’s principal investment objective is to maximize its portfolio’s total return by generating current income from the Company’s debt investments and capital appreciation from its equity and equity related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company.
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