Prospect Capital Co. Plans Monthly Dividend of $0.06 (NASDAQ:PSEC)

Prospect Capital Co. (NASDAQ:PSEC) declared a monthly dividend on Thursday, February 8th, Wall Street Journal reports. Shareholders of record on Friday, April 26th will be paid a dividend of 0.06 per share by the financial services provider on Tuesday, May 21st. This represents a $0.72 dividend on an annualized basis and a yield of 13.33%. The ex-dividend date of this dividend is Thursday, April 25th.

Prospect Capital has a payout ratio of 98.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Prospect Capital to earn $0.72 per share next year, which means the company may not be able to cover its $0.72 annual dividend with an expected future payout ratio of 100.0%.

Prospect Capital Price Performance

PSEC opened at $5.40 on Tuesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.07 and a quick ratio of 1.07. Prospect Capital has a 52-week low of $5.03 and a 52-week high of $6.90. The stock’s 50 day moving average price is $5.51 and its 200-day moving average price is $5.72.

Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Thursday, February 8th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.02. Prospect Capital had a positive return on equity of 13.48% and a negative net margin of 1.47%. The firm had revenue of $210.94 million for the quarter, compared to analysts’ expectations of $226.14 million. Analysts forecast that Prospect Capital will post 0.82 EPS for the current year.

Insider Activity at Prospect Capital

In other Prospect Capital news, CFO Dask Kristin Lea Van purchased 5,000 shares of the firm’s stock in a transaction that occurred on Monday, March 11th. The shares were bought at an average price of $5.44 per share, with a total value of $27,200.00. Following the completion of the purchase, the chief financial officer now directly owns 10,000 shares in the company, valued at $54,400. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 26.69% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Separately, Wells Fargo & Company lifted their price target on Prospect Capital from $5.50 to $5.75 and gave the company an “underweight” rating in a research report on Monday, January 29th.

Prospect Capital Company Profile

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.