Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Main Street Capital Corporation as such a stock due to the following factors:
- MAIN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.1 million.
- MAIN traded 50,309 shares today in the pre-market hours as of 8:49 AM, representing 19.4% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MAIN with the Ticky from Trade-Ideas. See the FREE profile for MAIN NOW at Trade-Ideas
More details on MAIN:
Main Street Capital Corporation is a business development company specializing in long- term equity, equity related, and debt investments in small and lower middle market companies. The stock currently has a dividend yield of 5.9%. MAIN has a PE ratio of 16.4. Currently there are 3 analysts that rate Main Street Capital Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Main Street Capital Corporation has been 292,100 shares per day over the past 30 days. Main Street has a market cap of $1.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.50 and a short float of 8.6% with 10.49 days to cover. Shares are up 1.5% year-to-date as of the close of trading on Friday.
rates Main Street Capital Corporation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 27.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for MAIN STREET CAPITAL CORP is currently very high, coming in at 83.02%. Regardless of MAIN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MAIN's net profit margin of 63.38% significantly outperformed against the industry.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, MAIN STREET CAPITAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- MAIN STREET CAPITAL CORP's earnings per share declined by 30.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MAIN STREET CAPITAL CORP reported lower earnings of $2.66 versus $3.54 in the prior year. For the next year, the market is expecting a contraction of 13.9% in earnings ($2.29 versus $2.66).
- You can view the full Main Street Capital Corporation Ratings Report.