According to Zacks, “Prospect Capital Corporation is a closed-end investment company that lends to and invests in private and microcap public businesses. Prospect Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments. “
PSEC has been the topic of a number of other reports. ValuEngine downgraded Zosano Pharma from a buy rating to a hold rating in a research report on Wednesday, May 1st. BidaskClub raised Zogenix from a sell rating to a hold rating in a research report on Thursday, May 9th. Finally, National Securities reaffirmed a sell rating and set a $4.00 price target on shares of Prospect Capital in a research report on Monday, May 13th. Two research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $6.00.
Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings results on Wednesday, May 8th. The financial services provider reported $0.21 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.21. The business had revenue of $171.10 million for the quarter, compared to the consensus estimate of $173.48 million. Prospect Capital had a return on equity of 9.58% and a net margin of 30.82%. The business’s quarterly revenue was up 5.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.19 earnings per share. As a group, sell-side analysts forecast that Prospect Capital will post 0.86 earnings per share for the current year.
The firm also recently declared a monthly dividend, which will be paid on Thursday, July 18th. Shareholders of record on Friday, June 28th will be issued a $0.06 dividend. This represents a $0.72 annualized dividend and a yield of 10.76%. The ex-dividend date is Thursday, June 27th. Prospect Capital’s payout ratio is 91.14%.
In other news, CEO John F. Barry bought 63,496 shares of the stock in a transaction dated Tuesday, June 4th. The shares were acquired at an average cost of $6.29 per share, with a total value of $399,389.84. Following the purchase, the chief executive officer now directly owns 38,364,480 shares in the company, valued at approximately $241,312,579.20. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO John F. Barry bought 408,911 shares of the stock in a transaction dated Thursday, June 13th. The shares were purchased at an average cost of $6.38 per share, for a total transaction of $2,608,852.18. Following the completion of the purchase, the chief executive officer now owns 38,938,445 shares in the company, valued at $248,427,279.10. The disclosure for this purchase can be found here. Over the last ninety days, insiders acquired 610,246 shares of company stock worth $3,882,141. 10.20% of the stock is owned by corporate insiders.
Hedge funds have recently bought and sold shares of the company. HRT Financial LLC boosted its stake in shares of Prospect Capital by 626.1% during the 4th quarter. HRT Financial LLC now owns 105,942 shares of the financial services provider’s stock worth $668,000 after acquiring an additional 91,352 shares in the last quarter. Two Sigma Securities LLC raised its position in shares of Prospect Capital by 9.6% during the 4th quarter. Two Sigma Securities LLC now owns 29,504 shares of the financial services provider’s stock worth $186,000 after purchasing an additional 2,585 shares during the last quarter. Massey Quick Simon & CO. LLC acquired a new position in shares of Prospect Capital during the 1st quarter worth about $67,000. PVG Asset Management Corp acquired a new position in shares of Prospect Capital during the 4th quarter worth about $894,000. Finally, Trinity Legacy Partners LLC acquired a new position in shares of Prospect Capital during the 1st quarter worth about $83,000. 12.21% of the stock is currently owned by institutional investors and hedge funds.
About Prospect Capital
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.
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