Main Street Capital Corporation (MAIN) Shares Active after Upgrade at Zacks Investment Research

Main Street Capital Corporation (NYSE: MAIN) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.

Analysts at Zacks Investment Research upgraded shares of Main Street Capital Corporation (NYSE: MAIN) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $34.75 is less than the opening price of $36.79, resulting a number of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Main Street Capital Corporation stock has a high of $37.57. Typically, after analysts issue an upgrade report on a stock, they will subsequently issue sporadic revisions, such as a price target change.

Yesterday Main Street Capital Corporation (NYSE: MAIN) shares last traded at $36.75, which represents a spike of $0.04 from the previous closing price. Opening at $36.79, they fluctuated from $36.75 and $36.87 throughout the day.

Main Street Capital Corporation (NYSE: MAIN) now has a market cap of 1.95B.

Main Street Capital Corporation (NYSE: MAIN) Average Daily Trading Volume

The stock’s average daily volume is 299,271 shares out of a total float 49,978,000 and some 51,080 shares traded hands yesterday, 35 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Main Street Capital Corporation (NYSE: MAIN) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

Trades for Main Street Capital Corporation (NYSE: MAIN) have ranged from $24.21 – 37.57, and the stock now has a 50-day MA of $36.65 and 200-day MA of $34.62. Today’s last price is 2.18%% under the 52 week high of $37.57.

Earnings growth is a critical factor to consider when buying stocks and investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.

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