Latest news with #MainStreetCapital
Yahoo
4 days ago
- Business
- Yahoo
Main Street Capital (MAIN) Q2 Earnings Meet Estimates
Main Street Capital (MAIN) came out with quarterly earnings of $0.99 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this investment firm would post earnings of $1 per share when it actually produced earnings of $1.01, delivering a surprise of +1%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Main Street Capital, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $143.97 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.92%. This compares to year-ago revenues of $132.15 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Main Street Capital shares have added about 9.5% since the beginning of the year versus the S&P 500's gain of 7.9%. What's Next for Main Street Capital? While Main Street Capital has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Main Street Capital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $137.83 million in revenues for the coming quarter and $3.96 on $550.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, Essent Group (ESNT), is yet to report results for the quarter ended June 2025. The results are expected to be released on August 8. This mortgage insurance and reinsurance holding company is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of -12%. The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. Essent Group's revenues are expected to be $317.15 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Main Street Capital Corporation (MAIN) : Free Stock Analysis Report Essent Group Ltd. (ESNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
7 days ago
- Business
- Yahoo
Main Street Capital Corporation (MAIN): A Bull Case Theory
We came across a bullish thesis on Main Street Capital Corporation on Investing Lawyer's Substack. In this article, we will summarize the bulls' thesis on MAIN. Main Street Capital Corporation's share was trading at $63.99 as of August 1st. MAIN's trailing and forward P/E were 10.85 and 15.60 respectively according to Yahoo Finance. A close-up of a hand signing a contract, symbolizing deals being made in private equity and buyouts. Main Street Capital (MAIN) is a leading Business Development Company (BDC) known for its reliable monthly dividend payments, offering investors steady income with a current yield of approximately 7.4%. This income-focused strategy appeals to investors seeking predictable cash flow. The company's strength lies in its diversified portfolio of middle-market investments and a disciplined capital allocation approach, which supports the sustainability and growth of its dividends over time. MAIN has an impressive track record of consistency, having never missed a dividend, and continues to prioritize high-quality, cash-generating businesses to enhance shareholder returns. The stock has demonstrated a stable trading pattern over recent years, moving within established trend lines, indicating resilience and investor confidence. While short-term price fluctuations may occur, MAIN is expected to maintain its upward momentum over the long term. Even in a scenario where the price corrects toward the $52–$55 range, technical indicators suggest a likely continuation of its positive trajectory thereafter. There are no strong signals of a prolonged downtrend, reinforcing the view of MAIN as a stable income-generating investment. In addition to its attractive yield, MAIN's unique feature of monthly dividends sets it apart from many peers, making it a compelling choice for investors seeking both stability and regular income. With its proven business model, focus on quality assets, and commitment to delivering shareholder value, MAIN offers a strong combination of income and potential price appreciation, making it a top pick for long-term, income-oriented portfolios. Previously, we covered a on McCormick & Company, Incorporated (MKC) by Investing Lawyer in February 2025, which highlighted its dividend growth consistency, defensive positioning, and key support levels near $70. The company's stock price has depreciated by approximately 13.91% since our coverage, as technical weakness persisted. The thesis still stands given MKC's strong fundamentals. Investing Lawyer shares a similar view on Main Street Capital but emphasizes its higher yield and monthly dividends. Main Street Capital Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held MAIN at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the potential of MAIN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
02-08-2025
- Business
- Yahoo
Main Street Capital (MAIN) Stock Moves -1.10%: What You Should Know
In the latest trading session, Main Street Capital (MAIN) closed at $63.99, marking a -1.1% move from the previous day. This change was narrower than the S&P 500's 1.6% loss on the day. Meanwhile, the Dow experienced a drop of 1.23%, and the technology-dominated Nasdaq saw a decrease of 2.24%. Coming into today, shares of the investment firm had gained 5.84% in the past month. In that same time, the Finance sector gained 0.8%, while the S&P 500 gained 2.25%. Market participants will be closely following the financial results of Main Street Capital in its upcoming release. The company plans to announce its earnings on August 7, 2025. The company is forecasted to report an EPS of $0.99, showcasing a 1.98% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $137.23 million, up 3.84% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $3.96 per share and a revenue of $550.78 million, demonstrating changes of -3.18% and +1.8%, respectively, from the preceding year. Investors should also note any recent changes to analyst estimates for Main Street Capital. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Main Street Capital holds a Zacks Rank of #3 (Hold). Looking at its valuation, Main Street Capital is holding a Forward P/E ratio of 16.34. This signifies a premium in comparison to the average Forward P/E of 8.93 for its industry. The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 37% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Main Street Capital Corporation (MAIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-07-2025
- Business
- Yahoo
1 Reason to Buy Main Street Capital (MAIN)
Key Points Main Street Capital pays a sustainable monthly dividend. The BDC also periodically pays supplemental dividends. The company's dividend payments really add up. 10 stocks we like better than Main Street Capital › There are many reasons to consider buying shares of Main Street Capital (NYSE: MAIN). The main one is the reliable and attractive dividend income it provides to investors. Here's a closer look at the dividend policy of this business development company (BDC). BDCs, much like master limited partnerships (MLPs) and real estate investment trusts (REITs), must distribute 90% of their taxable income to shareholders each year. As a result, these entities tend to pay out lucrative dividends. Main Street Capital stands out for its unique dividend policy and excellent track record. Unlike most BDCs, which pay dividends quarterly, MAIN pays monthly dividends. It sets its monthly dividend at a sustainable level to provide investors with comfort knowing they'll receive consistent income. The company has never cut or suspended its dividend and has increased its monthly payout by 132% since 2007. Over the past year, Main Street has raised its monthly dividend twice by a total of 4.1%. Additionally, Main Street Capital periodically pays supplemental dividends, typically on a quarterly basis. These payments enable the company to meet the 90% distribution requirement and provide investors with additional income. While the company doesn't always make a supplemental dividend payment, it has paid one every quarter since the end of 2021. Main Street Capital has declared a total of $1.065 per share in dividends for the third quarter ($0.765 in monthly payments and a $0.30 per share supplemental payment). Those payments give the company an annualized dividend yield of around 8%, several times higher than the S&P 500 (sub-1.5% dividend yield). With sustainable and growing monthly dividends and periodic supplemental income, Main Street Capital is a great stock to buy if you're seeking passive income. Should you buy stock in Main Street Capital right now? Before you buy stock in Main Street Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Main Street Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Matt DiLallo has positions in Main Street Capital. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Reason to Buy Main Street Capital (MAIN) was originally published by The Motley Fool
Yahoo
12-07-2025
- Business
- Yahoo
Intrigued by AGNC Investment's Monster Monthly Dividend? Consider This Passive Income Machine Instead.
Main Street Capital pays a stable and steadily growing monthly dividend. The company also periodically pays supplemental dividends. Its total return has been much higher than AGNC Investment's over the years. 10 stocks we like better than AGNC Investment Corp. › AGNC Investment (NASDAQ: AGNC) pays a prodigious monthly dividend with a yield over 15%. That's more than 10 times higher than the S&P 500. While the mortgage real estate investment trust (REIT) offers a high-yielding payout, it hasn't increased its dividend since its first few quarters as a public company more than 15 years ago. Instead, it has cut its payout several times over the years. Because of that, it's not an ideal passive income stock for those seeking a bankable income stream. Those desiring to generate durable and growing passive income should consider Main Street Capital (NYSE: MAIN) instead. The business development company (BDC) has routinely raised its high-yielding monthly dividend. It also periodically pays quarterly supplemental dividends. Here's a closer look at this passive income machine. AGNC Investment and Main Street Capital share several commonalities. They primarily invest in secured loans that generate interest income. AGNC Investment invests solely in mortgage-backed securities (MBS) protected from credit risk by government agencies like Fannie Mae. Those residential mortgage pools tend to be very low-risk investments that have low returns (low- to mid-single-digit yields). AGNC boosts its returns (and risk profile) by investing in MBS on a leveraged basis. Main Street Capital provides capital solutions (private debt and private equity) to lower middle market companies (those with revenues between $10 million and $150 million). It also provides debt capital to middle-market companies (those with revenues above $150 million). While these investments have higher risk profiles, they also provide much higher returns (its lower middle market portfolio has a weighted average effective yield of 12.7%). It also makes equity investments, which provide it with dividend income and upside potential as the value of those companies increases. The BDC takes several steps to limit its risk. It primarily invests in loans with a first lien position backed by collateral. That gives it priority of repayment should one of its portfolio companies file for bankruptcy. Main Street Capital also has a very strong financial profile, including an investment-grade credit rating and a low dividend payout ratio for its monthly dividend payment. Main Street Capital's conservative approach has served its investors well over the years. The company has never cut its monthly dividend rate since its initial public offering in 2007. Instead, the company has routinely raised its dividend. It has increased its payout by 132% over the years. Main Street has also periodically paid supplemental dividends since 2013, including the past 15 quarters in a row. For comparison, 25 BDCs (78% of its peer group) have cut their dividend at least once since 2007 or their IPO date. Of that group, 16 BDCs (50% of its peers) have reduced their dividends multiple times. AGNC Investment has also cut its dividend several times since its IPO in mid-2008. Main Street Capital's ability to pay a growing dividend has contributed to its much higher total returns over the years: As that chart shows, AGNC Investment's stock price has lost 50% of its value since its IPO. While the mortgage REIT's lucrative dividend payment has helped boost its total return to over 10% annually, investors need to factor in some value loss when considering the company's monster dividend. On the other hand, Main Street Capital's stock price has increased by nearly 10% annually, contributing to its higher total return. One factor driving Main Street Capital's rising stock price is its equity investments, which have increased in value over the years, creating additional value for its shareholders. With its stock price rising, the company can sell additional shares to fund new investments without significantly diluting its existing investors. AGNC often needs to sell its stock at a lower price to fund new investments, diluting value for its existing investors. AGNC Investment offers a monster monthly dividend. The problem with the REIT is that the payout hasn't grown and could get cut again. Because of that, its total returns could be less than its current income yield over the long term. That's why investors who are intrigued by AGNC should consider Main Street Capital. The BDC pays an attractive and growing monthly dividend that it supplements with additional quarterly payouts (8% total yield based on its last payment). The rising income stream, combined with the value growth of its equity portfolio, has enabled the company to generate higher total returns over the long term. That makes it a potentially better long-term option for investors seeking to collect passive income. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Matt DiLallo has positions in Main Street Capital. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Intrigued by AGNC Investment's Monster Monthly Dividend? Consider This Passive Income Machine Instead. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
