Prospect Capital (NASDAQ:PSEC) CEO John Barry Acquires 433,000 Shares

Prospect Capital Corporation (NASDAQ:PSEC) CEO John Barry purchased 433,000 shares of Prospect Capital stock in a transaction on Tuesday, May 26th. The shares were acquired at an average price of $2.32 per share, for a total transaction of $1,004,560.00. Following the completion of the transaction, the chief executive officer directly owned 87,122,376 shares of the company’s stock, valued at approximately $202,123,912.32. The trade was a 0.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Prospect Capital Trading Up 1.3%

Shares of PSEC traded up $0.03 during mid-day trading on Thursday, reaching $2.37. The company’s stock had a trading volume of 3,995,800 shares, compared to its average volume of 4,939,104. Prospect Capital Corporation has a 52 week low of $2.11 and a 52 week high of $3.50. The stock has a market cap of $1.19 billion, a PE ratio of -6.41 and a beta of 0.82. The company’s fifty day moving average price is $2.55 and its two-hundred day moving average price is $2.66. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.59.

Prospect Capital (NASDAQ:PSEC) last released its earnings results on Thursday, May 7th. The financial services provider reported $0.16 EPS for the quarter, beating the consensus estimate of $0.11 by $0.05. The company had revenue of $150.07 million for the quarter, compared to analyst estimates 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 Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be paid a $0.035 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 17.7%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital’s payout ratio is -145.95%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Catalyst Financial Partners LLC purchased a new position in Prospect Capital during the 4th quarter valued at about $26,000. Bfsg LLC purchased a new position in Prospect Capital during the 4th quarter valued at about $27,000. Navalign LLC purchased a new position in Prospect Capital during the 3rd quarter valued at about $28,000. Ground Swell Capital LLC purchased a new position in Prospect Capital during the 4th quarter valued at about $28,000. Finally, Schonfeld Strategic Advisors LLC purchased a new position in Prospect Capital during the 4th quarter valued at about $28,000. Hedge funds and other institutional investors own 9.06% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on PSEC. Wells Fargo & Company decreased their price target on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a research note on Tuesday, May 12th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Prospect Capital in a research note on Tuesday, April 21st. Finally, Wall Street Zen raised Prospect Capital from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. Two analysts have rated the stock with a Sell rating, According to data from MarketBeat, the company currently has a consensus rating of “Sell” and an average price target of $2.00.

About Prospect Capital

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.