Key Points
- Prospect Capital CEO John Barry bought 1,067,648 shares at an average price of $2.27, a transaction worth about $2.42 million. The purchase lifted his total holdings to more than 89.2 million shares, signaling strong insider confidence.
- The company also announced a monthly dividend of $0.035 per share, payable on September 17 to shareholders of record on August 27. That works out to an annualized yield of about 18.5%, though the payout ratio remains negative.
- Despite the insider buying and dividend appeal, analyst sentiment remains cautious. Prospect Capital currently carries a consensus “Sell” rating, and the average price target is $2.00, below the recent trading price.
Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry bought 1,067,648 shares of the business's stock in a transaction on Tuesday, June 23rd. The stock was purchased at an average price of $2.27 per share, for a total transaction of $2,423,560.96. Following the completion of the acquisition, the chief executive officer owned 89,213,725 shares of the company's stock, valued at approximately $202,515,155.75. This trade represents a 1.21% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink.
Prospect Capital Trading Up 2.3%
Shares of NASDAQ PSEC opened at $2.27 on Friday. Prospect Capital Corporation has a twelve month low of $2.11 and a twelve month high of $3.50. The stock has a market cap of $1.14 billion, a price-to-earnings ratio of -6.13 and a beta of 0.78. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59. The company's fifty day moving average is $2.42 and its 200-day moving average is $2.60.
Prospect Capital (NASDAQ:PSEC - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.05. The business had revenue of $150.07 million during the quarter, compared to analysts' expectations of $163.23 million. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.03%.
Prospect Capital Announces Dividend
The firm also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th will be paid a $0.035 dividend. This represents a c) dividend on an annualized basis and a yield of 18.5%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital's payout ratio is presently -113.51%.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of the company. Raymond James Financial Inc. boosted its position in shares of Prospect Capital by 0.5% during the second quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider's stock worth $2,685,000 after buying an additional 3,880 shares during the period. Private Advisor Group LLC raised its position in Prospect Capital by 0.4% in the 1st quarter. Private Advisor Group LLC now owns 1,711,638 shares of the financial services provider's stock valued at $4,467,000 after buying an additional 6,262 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S raised its position in Prospect Capital by 1.3% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 520,592 shares of the financial services provider's stock valued at $1,655,000 after buying an additional 6,516 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Prospect Capital by 1.8% in the 3rd quarter. BNP Paribas Financial Markets now owns 504,342 shares of the financial services provider's stock valued at $1,387,000 after acquiring an additional 9,008 shares in the last quarter. Finally, Wealthfront Advisers LLC lifted its stake in Prospect Capital by 24.8% in the 4th quarter. Wealthfront Advisers LLC now owns 49,092 shares of the financial services provider's stock valued at $127,000 after acquiring an additional 9,740 shares in the last quarter. 9.06% of the stock is owned by institutional investors and hedge funds.
Prospect Capital News Roundup
Here are the key news stories impacting Prospect Capital this week:
- Positive Sentiment: CEO John F. Barry bought 1,067,648 shares at $2.27, adding to his already large stake and signaling confidence in Prospect Capital’s outlook. Top Executive Makes Bold Move With Major Prospect Capital Stock Purchase
- Positive Sentiment: Barry also purchased 1,000,000 shares at $2.25, reinforcing the bullish insider signal and potentially helping support PSEC’s recent share price strength. John Barry Buys 1,000,000 Shares of Prospect Capital (NASDAQ:PSEC) Stock
- Neutral Sentiment: Prospect Capital also announced a monthly dividend of $0.035 per share, which keeps the stock attractive to income-focused investors, though the payout remains a point to monitor given the negative payout ratio. Prospect Capital stock information
- Negative Sentiment: Despite the insider buying, analyst sentiment is still weak, with a consensus rating of “Sell” and a target price below the recent trading range, which may limit upside. Prospect Capital Corporation: A Gold Nugget or Value Trap?
Analysts Set New Price Targets
A number of research firms have recently commented on PSEC. Wells Fargo & Company dropped their price target on Prospect Capital from $2.50 to $2.00 and set an "underweight" rating on the stock in a research report on Tuesday, May 12th. Weiss Ratings raised Prospect Capital from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, May 29th. Finally, Wall Street Zen upgraded shares of Prospect Capital from a "hold" rating to a "buy" rating in a report on Sunday, June 21st. Two equities research analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, Prospect Capital currently has a consensus rating of "Sell" and an average target price of $2.00.
Read Our Latest Stock Report on PSEC
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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