Main Street Capital Corporation (MAIN) Stock Rating Reaffirmed by National Securities
Main Street Capital Corporation (NYSE:MAIN)‘s stock had its “sell” rating reissued by equities research analysts at National Securities in a research report issued on Monday. They presently have a $33.00 price target on the financial services provider’s stock. National Securities’ target price indicates a potential downside of 19.43% from the company’s current price.
The analysts wrote, “• 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.”
Several other research analysts have also commented on MAIN. Zacks Investment Research upgraded shares of Main Street Capital Corporation from a “hold” rating to a “buy” rating and set a $45.00 price objective for the company in a report on Thursday, August 10th. BidaskClub upgraded shares of Main Street Capital Corporation from a “hold” rating to a “buy” rating in a report on Thursday, August 10th. Finally, ValuEngine upgraded shares of Main Street Capital Corporation from a “hold” rating to a “buy” rating in a report on Friday, September 1st. Three research analysts have rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $38.98.
Main Street Capital Corporation (NYSE MAIN) opened at $40.96 on Monday. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.10 and a quick ratio of 0.10. Main Street Capital Corporation has a 1-year low of $32.18 and a 1-year high of $41.06. The company has a market cap of $2,379.69, a price-to-earnings ratio of 17.73 and a beta of 1.02.
Main Street Capital Corporation (NYSE:MAIN) last issued its quarterly earnings data on Thursday, November 2nd. The financial services provider reported $0.60 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.57 by $0.03. Main Street Capital Corporation had a net margin of 79.87% and a return on equity of 10.32%. The business had revenue of $51.79 million during the quarter, compared to analyst estimates of $50.89 million. During the same period in the prior year, the business earned $0.58 EPS. The company’s revenue for the quarter was up 11.1% on a year-over-year basis. sell-side analysts predict that Main Street Capital Corporation will post 2.31 earnings per share for the current fiscal year.
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Institutional investors have recently modified their holdings of the stock. Tower Research Capital LLC TRC bought a new position in shares of Main Street Capital Corporation in the 2nd quarter worth about $119,000. V Wealth Management LLC bought a new position in shares of Main Street Capital Corporation in the 2nd quarter worth about $139,000. US Bancorp DE increased its stake in shares of Main Street Capital Corporation by 15.6% in the 2nd quarter. US Bancorp DE now owns 3,707 shares of the financial services provider’s stock worth $143,000 after acquiring an additional 500 shares in the last quarter. Good Life Advisors LLC bought a new position in shares of Main Street Capital Corporation in the 3rd quarter worth about $203,000. Finally, Aperio Group LLC bought a new position in shares of Main Street Capital Corporation in the 2nd quarter worth about $204,000. Institutional investors own 26.78% of the company’s stock.
Main Street Capital Corporation 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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