Earl Jackson, a director at Main Street Capital Corp (MAIN), recently added 3,000 shares. The buy increased his holdings by 5 percent, and came to a total cost of $117,600.
The director was also the last buyer of shares nearly a year ago, again picking up 3,000 shares. Over the past two years, there have been more insider sales than purchases, including a 100,010 sale by the company CEO in early 2022.
Overall, insiders own 4.4 percent of the company.
The business development company (BDC) provides funding for small businesses, typically in a mix of equity ownership or fixed income bonds or notes.
Main Street leans more towards fixed-income investments, and has fared well with rising interest rates. Revenues are up nearly 40 percent over the past year, and the company has a 64 percent profit margin.
Action to take: As a BDC, Main Street is set up to pay out high levels of income. At present, shares yield about 6.9 percent, with the dividend payout recently increased from $2.60 annually to $2.70 annually. Those seeking current income may want to buy shares now, and use any market fears to acquire more at lower prices.
For traders, shares were slightly hit with last month’s banking sector fears, but are in a long-term uptrend. The June $40 calls, last going for about $1.40, offer mid-double-digit returns in the months ahead on a further rally for shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.