Key Points
- CEO John Barry bought 2,604,262 shares at an average price of $1.51, spending about $3.93 million and increasing his ownership by 2.84% to 94.4 million shares.
- Prospect Capital reported quarterly earnings of $0.15 per share, beating the $0.10 consensus estimate, but revenue of $151.74 million fell short of forecasts.
- The company announced a monthly dividend of $0.035 per share, equivalent to a stated annualized yield of 28.8%. Analyst sentiment was negative overall, with a consensus “Sell” rating and a $1.50 price target.
Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry purchased 1,410,633 shares of the business's stock in a transaction on Tuesday, November 10th. The stock was purchased at an average cost of $1.51 per share, for a total transaction of $2,130,055.83. Following the completion of the acquisition, the chief executive officer directly owned 95,808,672 shares of the company's stock, valued at approximately $144,671,094.72. The trade was a 1.49% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.
Prospect Capital Stock Up 3.9%
Shares of PSEC stock traded up $0.06 during trading hours on Friday, reaching $1.46. 6,242,784 shares of the company's stock were exchanged, compared to its average volume of 7,818,376. Prospect Capital Corporation has a fifty-two week low of $1.29 and a fifty-two week high of $3.12. The stock's 50 day moving average is $1.81 and its 200-day moving average is $2.30. The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 0.53. The company has a market cap of $813.21 million, a price-to-earnings ratio of -9.73 and a beta of 0.84.
Prospect Capital (NASDAQ:PSEC - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The financial services provider reported $0.15 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.05. Prospect Capital had a return on equity of 13.28% and a net margin of 3.80%. The firm had revenue of $151.74 million during the quarter, compared to analysts' expectations of $163.14 million. Analysts predict that Prospect Capital Corporation will post 0.38 earnings per share for the current fiscal year.
Prospect Capital Announces Dividend
The firm also recently declared a monthly dividend, which will be paid on Wednesday, February 17th. Shareholders of record on Wednesday, January 27th will be paid a $0.0350 dividend. The ex-dividend date is Wednesday, January 27th. This represents a $0.42 dividend on an annualized basis and a yield of 28.8%. Prospect Capital's dividend payout ratio (DPR) is -280.00%.
Wall Street Analyst Weigh In
Several brokerages have weighed in on PSEC. Zacks Research raised Prospect Capital to a "hold" rating in a report on Monday, October 5th. Weiss Ratings downgraded shares of Prospect Capital from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, August 26th. Wells Fargo & Company cut their price objective on shares of Prospect Capital from $2.00 to $1.50 and set an "underweight" rating on the stock in a report on Friday, November 6th. Finally, Wall Street Zen lowered shares of Prospect Capital from a "buy" rating to a "hold" rating in a research report on Saturday, August 22nd. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Sell" and a consensus price target of $1.50.
View Our Latest Analysis on PSEC
Institutional Investors Weigh In On Prospect Capital
A number of large investors have recently made changes to their positions in PSEC. Jump Financial LLC acquired a new position in shares of Prospect Capital in the 3rd quarter valued at $57,000. Kovack Advisors Inc. lifted its position in Prospect Capital by 4.2% during the 3rd quarter. Kovack Advisors Inc. now owns 511,978 shares of the financial services provider's stock worth $1,050,000 after acquiring an additional 20,402 shares during the period. Caxton Associates LLP lifted its position in Prospect Capital by 16.5% during the 3rd quarter. Caxton Associates LLP now owns 690,465 shares of the financial services provider's stock worth $1,436,000 after acquiring an additional 97,911 shares during the period. Private Advisor Group LLC purchased a new stake in Prospect Capital during the 3rd quarter valued at about $4,200,000. Finally, Focus Advisor Solutions LLC grew its stake in Prospect Capital by 19.9% during the 3rd quarter. Focus Advisor Solutions LLC now owns 275,411 shares of the financial services provider's stock valued at $573,000 after purchasing an additional 45,717 shares during the last quarter. 9.06% of the stock is owned by hedge funds and other institutional investors.
Prospect Capital Company Profile
(
Get Free Report)
Prospect Capital Corporation is a business development company that provides financing to middle-market businesses. Its investments include senior and subordinated debt, structured finance, and equity securities. The company works with businesses seeking capital for purposes such as growth, acquisitions, recapitalizations, and refinancing. Its portfolio spans a range of industries, with investments primarily in companies in the United States. Founded in 2004, Prospect Capital is externally managed by Prospect Capital Management L.P. and is headquartered in New York City.
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