Key Points
- CEO John Barry bought 1,217,105 Prospect Capital shares at an average price of $2.24, investing approximately $2.73 million and increasing his ownership to 90.48 million shares.
- Prospect Capital reported quarterly EPS of $0.15, beating estimates of $0.11, while revenue reached $155.76 million. The company also declared a monthly dividend of $0.035 per share, representing an annualized yield of approximately 19.3%.
- Despite the insider purchase, analyst sentiment remains negative: the stock carries a consensus “Sell” rating and a $2.00 target price, below its reported opening price of $2.18.
Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry acquired 1,217,105 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was bought at an average cost of $2.24 per share, for a total transaction of $2,726,315.20. Following the completion of the purchase, the chief executive officer owned 90,479,988 shares of the company's stock, valued at $202,675,173.12. This trade represents a 1.36% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.
Prospect Capital Stock Performance
NASDAQ:PSEC opened at $2.18 on Thursday. The company has a market capitalization of $1.14 billion, a PE ratio of 43.60 and a beta of 0.80. The company has a 50 day simple moving average of $2.24 and a two-hundred day simple moving average of $2.41. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.87 and a current ratio of 0.87. Prospect Capital Corporation has a fifty-two week low of $2.11 and a fifty-two week high of $3.13.
Prospect Capital (NASDAQ:PSEC - Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.04. The firm had revenue of $155.76 million during the quarter, compared to analyst estimates of $149.80 million. Prospect Capital had a net margin of 19.33% and a return on equity of 12.15%.
Prospect Capital Announces Dividend
The company also recently announced a monthly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, October 28th will be paid a dividend of $0.035 per share. This represents a c) dividend on an annualized basis and a yield of 19.3%. The ex-dividend date of this dividend is Wednesday, October 28th. Prospect Capital's dividend payout ratio (DPR) is currently 840.00%.
Institutional Trading of Prospect Capital
Several large investors have recently modified their holdings of PSEC. Raymond James Financial Inc. increased its stake in shares of Prospect Capital by 0.5% in the 2nd quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider's stock valued at $2,685,000 after acquiring an additional 3,880 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in Prospect Capital by 55.5% during the second quarter. Caitong International Asset Management Co. Ltd now owns 16,970 shares of the financial services provider's stock worth $39,000 after acquiring an additional 6,056 shares in the last quarter. Private Advisor Group LLC boosted its stake in Prospect Capital by 0.4% during the first quarter. Private Advisor Group LLC now owns 1,711,638 shares of the financial services provider's stock worth $4,467,000 after acquiring an additional 6,262 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S grew its holdings in Prospect Capital by 1.3% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 520,592 shares of the financial services provider's stock worth $1,655,000 after purchasing an additional 6,516 shares during the period. Finally, BNP Paribas Financial Markets increased its stake in Prospect Capital by 1.8% in the third quarter. BNP Paribas Financial Markets now owns 504,342 shares of the financial services provider's stock valued at $1,387,000 after purchasing an additional 9,008 shares in the last quarter. Institutional investors and hedge funds own 9.06% of the company's stock.
Analysts Set New Price Targets
PSEC has been the topic of a number of research analyst reports. Wall Street Zen cut shares of Prospect Capital from a "buy" rating to a "hold" rating in a research report on Saturday, August 22nd. Weiss Ratings lowered Prospect Capital from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, August 26th. Two analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has a consensus rating of "Sell" and a consensus target price of $2.00.
Read Our Latest Analysis on PSEC
About Prospect Capital
(
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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