Main Street Capital: Risks Ahead of Earnings
Main Street Capital (NYSE: MAIN) is beloved for its historical underwriting performance, which has translated into industry-leading stock returns for its investors. Shares now trade at a 73% premium to book value, whereas the median company in its industry trades at a 5% discount to book.
Given its sky-high book value multiple, investors should remain focused on the risks that threaten its high valuation. If Main Street Capital were to trade down to the valuation of the second highest-valued business-development company (Hercules Capital at 1.37 times book), investors would stand to lose nearly three years of dividends to capital losses.
With this in mind, it's prudent to keep an eye on what could potentially rattle Main Street Capital's underlying business, and its share price. Here are three things worth studying carefully when Main Street Capital reports earnings on Aug. 3, and for the remainder of the year.
Source: Fool.com
Main Street Capital Corp. Stock
With 0 Sell predictions and 2 Buy predictions the community sentiment towards the Main Street Capital Corp. stock is not clear.
On the other hand, the target price of 46 € is below the current price of 47.93 € for Main Street Capital Corp., so the potential is actually -4.02%.
