Main Street Capital Corporation (NYSE:MAIN)‘s stock had its “sell” rating reiterated by investment analysts at National Securities in a report released on Tuesday. They currently have a $33.00 price target on the financial services provider’s stock. National Securities’ target price would indicate a potential downside of 17.19% from the company’s previous close.

The analysts wrote, “• In 2Q17 NII/share was $0.58/share compared to our estimate of $0.56 and consensus estimates of $0.54. Fee income was up 26% linked Q/Q to $3.1 million with approximately $0.02/share of fee income during the quarter considered nonrecurring in nature.

• Despite being a very strong originator with good asset quality and shareholder friendly actions and structure we note that current valuation represents a 76% premium to NAV/share and 67% to our 4Q18 NAV/share estimate. Our $33 price target represents a tailing P/NAV (trailing) of 1.46x and 1.38x P/NAV (4Q18E). We think the market is discounting that dislocations in the markets, especially given the age of the credit cycle, could materially lower company valuation multiples which, if to the magnitude of getting rid of realized gains dividends, would materially lower the total yield and weigh on the valuation significantly, in our view. We regard Main Street as a top performer in the sector from an operational perspective, but we believe that shares are currently valued far too high.

• We are revising our 2017 NII/share estimate to $2.31 from $2.27 from $2.35 and our 2018 NII/share estimate to $2.42 from $2.37.”

A number of other analysts have also issued reports on the stock. Zacks Investment Research lowered shares of Main Street Capital Corporation from a “hold” rating to a “sell” rating in a research note on Wednesday, May 10th. Vetr upgraded shares of Main Street Capital Corporation from a “hold” rating to a “buy” rating and set a $40.88 price objective on the stock in a research note on Tuesday, April 11th. Citigroup Inc. lowered shares of Main Street Capital Corporation from a “market perform” rating to an “underperform” rating in a research note on Wednesday, May 10th. They noted that the move was a valuation call. Raymond James Financial, Inc. reissued an “underperform” rating on shares of Main Street Capital Corporation in a research report on Wednesday, May 10th. Finally, FBR & Co reissued a “hold” rating and set a $38.00 price target on shares of Main Street Capital Corporation in a research report on Monday, May 8th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and three have issued a buy rating to the stock. The stock has an average rating of “Hold” and an average target price of $38.13.

Main Street Capital Corporation (MAIN) opened at 39.85 on Tuesday. The firm has a market cap of $2.23 billion, a PE ratio of 13.80 and a beta of 1.04. Main Street Capital Corporation has a 12-month low of $32.12 and a 12-month high of $40.86. The firm’s 50-day moving average is $38.65 and its 200 day moving average is $38.07.

Main Street Capital Corporation (NYSE:MAIN) last posted its quarterly earnings data on Thursday, August 3rd. The financial services provider reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.05. The company had revenue of $50.30 million for the quarter, compared to analyst estimates of $47.82 million. Main Street Capital Corporation had a net margin of 86.36% and a return on equity of 10.43%. The business’s quarterly revenue was up 17.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.54 earnings per share. Equities research analysts predict that Main Street Capital Corporation will post $2.28 EPS for the current year.

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Several hedge funds have recently added to or reduced their stakes in the company. Capital Fund Management S.A. bought a new stake in shares of Main Street Capital Corporation during the first quarter valued at approximately $348,000. Geneva Advisors LLC boosted its stake in shares of Main Street Capital Corporation by 26.0% in the first quarter. Geneva Advisors LLC now owns 44,092 shares of the financial services provider’s stock valued at $1,687,000 after buying an additional 9,098 shares during the last quarter. Focused Wealth Management Inc boosted its stake in shares of Main Street Capital Corporation by 0.6% in the first quarter. Focused Wealth Management Inc now owns 17,935 shares of the financial services provider’s stock valued at $686,000 after buying an additional 103 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD boosted its stake in shares of Main Street Capital Corporation by 86.8% in the first quarter. Sumitomo Mitsui Asset Management Company LTD now owns 137,085 shares of the financial services provider’s stock valued at $5,246,000 after buying an additional 63,712 shares during the last quarter. Finally, Navellier & Associates Inc boosted its stake in shares of Main Street Capital Corporation by 8.8% in the first quarter. Navellier & Associates Inc now owns 7,489 shares of the financial services provider’s stock valued at $287,000 after buying an additional 604 shares during the last quarter. 26.41% of the stock is owned by institutional investors and hedge funds.

About Main Street Capital Corporation

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.

Analyst Recommendations for Main Street Capital Corporation (NYSE:MAIN)

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