Key Points
- CEO John Barry bought 433,000 shares of Prospect Capital at $2.32 each, a transaction worth about $1.0 million. After the purchase, he directly owned 87.1 million shares, increasing his position by 0.50%.
- Prospect Capital recently reported quarterly earnings of $0.16 per share, beating analyst expectations of $0.11 by $0.05. However, revenue came in below estimates at $150.07 million versus $163.23 million expected.
- The company announced a monthly dividend of $0.035 per share, payable Sept. 17 to shareholders of record Aug. 27, implying an annualized yield of 17.7%. At the same time, analysts remain cautious, with an average rating of Sell and a target price of $2.00.
Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry acquired 433,000 shares of Prospect Capital stock in a transaction on Tuesday, May 26th. The shares were bought at an average price of $2.32 per share, with a total value of $1,004,560.00. Following the purchase, the chief executive officer directly owned 87,122,376 shares in the company, valued at approximately $202,123,912.32. The trade was a 0.50% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink.
Prospect Capital Price Performance
Shares of Prospect Capital stock opened at $2.37 on Friday. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59. Prospect Capital Corporation has a twelve month low of $2.11 and a twelve month high of $3.50. The business has a 50-day moving average price of $2.55 and a 200 day moving average price of $2.66. The firm has a market cap of $1.19 billion, a PE ratio of -6.41 and a beta of 0.82.
Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.05. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.The firm had revenue of $150.07 million during the quarter, compared to analyst estimates of $163.23 million.
Prospect Capital Announces Dividend
The firm also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be issued a $0.035 dividend. This represents a c) annualized dividend and a yield of 17.7%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital's dividend payout ratio is -113.51%.
Wall Street Analysts Forecast Growth
Several equities analysts recently commented on the company. Wells Fargo & Company dropped their target price on Prospect Capital from $2.50 to $2.00 and set an "underweight" rating on the stock in a report on Tuesday, May 12th. Wall Street Zen raised Prospect Capital from a "hold" rating to a "buy" rating in a report on Saturday, May 16th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Prospect Capital in a report on Tuesday, April 21st. Two equities research analysts have rated the stock with a Sell rating, Based on data from MarketBeat, Prospect Capital currently has an average rating of "Sell" and an average target price of $2.00.
View Our Latest Stock Analysis on PSEC
Institutional Investors Weigh In On Prospect Capital
Several hedge funds have recently made changes to their positions in the business. Van ECK Associates Corp boosted its stake in shares of Prospect Capital by 9.2% during the third quarter. Van ECK Associates Corp now owns 10,255,640 shares of the financial services provider's stock worth $28,203,000 after buying an additional 866,860 shares during the period. Marshall Wace LLP lifted its position in Prospect Capital by 70.7% in the third quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider's stock valued at $18,338,000 after purchasing an additional 2,761,351 shares during the period. Millennium Management LLC lifted its position in Prospect Capital by 356.3% in the third quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider's stock valued at $17,138,000 after purchasing an additional 4,866,312 shares during the period. Balyasny Asset Management L.P. lifted its position in Prospect Capital by 73.9% in the second quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider's stock valued at $18,002,000 after purchasing an additional 2,405,299 shares during the period. Finally, UBS Group AG lifted its position in Prospect Capital by 44.5% in the fourth quarter. UBS Group AG now owns 4,989,986 shares of the financial services provider's stock valued at $12,924,000 after purchasing an additional 1,536,808 shares during the period. Institutional investors and hedge funds own 9.06% of the company's stock.
Prospect Capital Company Profile
(
Get Free Report)
Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.
Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.
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