Key Points
- CEO John Barry bought 1,000,000 shares of Prospect Capital at an average price of $2.25 per share, a transaction worth $2.25 million. After the purchase, he owned 88,146,077 shares, increasing his stake by 1.15%.
- Prospect Capital recently reported earnings per share of $0.16, beating analyst estimates, though revenue came in below expectations. The company also posted a positive return on equity of 12.03% despite a negative net margin.
- The company announced a monthly dividend of $0.035 per share, implying an annualized yield of 18.9%. However, analysts remain cautious, with a consensus rating of Sell and an average target price of $2.00.
Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry bought 1,000,000 shares of the stock in a transaction dated Monday, June 22nd. The shares were purchased at an average cost of $2.25 per share, for a total transaction of $2,250,000.00. Following the completion of the purchase, the chief executive officer owned 88,146,077 shares in the company, valued at approximately $198,328,673.25. This represents a 1.15% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
Prospect Capital Price Performance
NASDAQ:PSEC opened at $2.22 on Thursday. 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 52 week low of $2.11 and a 52 week high of $3.50. The stock's 50-day moving average price is $2.43 and its 200-day moving average price is $2.60. The stock has a market capitalization of $1.11 billion, a PE ratio of -6.00 and a beta of 0.78.
Prospect Capital (NASDAQ:PSEC - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.05. The company had revenue of $150.07 million during the quarter, compared to analysts' expectations of $163.23 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.
Prospect Capital Dividend Announcement
The firm also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be given a $0.035 dividend. The ex-dividend date is Thursday, August 27th. This represents a c) dividend on an annualized basis and a dividend yield of 18.9%. Prospect Capital's payout ratio is -113.51%.
Institutional Investors Weigh In On Prospect Capital
Several large investors have recently bought and sold shares of PSEC. Catalyst Financial Partners LLC acquired a new position in shares of Prospect Capital during the fourth quarter valued at approximately $26,000. Bfsg LLC acquired a new stake in shares of Prospect Capital in the fourth quarter worth approximately $27,000. Navalign LLC purchased a new stake in shares of Prospect Capital during the third quarter worth approximately $28,000. Ground Swell Capital LLC purchased a new stake in shares of Prospect Capital during the fourth quarter worth approximately $28,000. Finally, Schonfeld Strategic Advisors LLC acquired a new position in Prospect Capital in the 4th quarter valued at $28,000. 9.06% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of research analysts have recently issued reports on PSEC shares. Weiss Ratings upgraded Prospect Capital from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, May 29th. Wells Fargo & Company cut their price target on shares of Prospect Capital from $2.50 to $2.00 and set an "underweight" rating for the company in a report on Tuesday, May 12th. Finally, Wall Street Zen upgraded shares of Prospect Capital from a "hold" rating to a "buy" rating in a research report on Sunday. Two analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, Prospect Capital currently has an average rating of "Sell" and a consensus target price of $2.00.
View Our Latest Analysis on Prospect Capital
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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