Overview

• Main Street Capital's Q3 preliminary net investment income per share estimated at $0.95 to $0.99

• Distributable net investment income per share estimated at $1.01 to $1.05

• Net asset value per share rises 1.3% to 1.6% after $0.30 dividend

Outlook

• Company did not provide specific guidance for future quarters or full year in its press release

Result Drivers

• NET ASSET VALUE INCREASE - Co reports record net asset value per share for the 13th consecutive qtr, driven by net fair value increases in lower middle market investments

• HIGH RETURN ON EQUITY - Co estimates return on equity over 16% for Q3, attributed to net increases in investment portfolio fair value and net tax provision

• INVESTMENT STRATEGY - Co invested $106.2 mln in LMM portfolio and $113.3 mln in private loan portfolio, with repayments and cost basis reductions resulting in net increases

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "hold"

• Wall Street's median 12-month price target for Main Street Capital Corp is $62.00, about 8.8% above its October 13 closing price of $56.57

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn2tZFYQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)