FWG Investments LLC. Takes Position in Prospect Capital Corporation $PSEC

FWG Investments LLC. purchased a new position in Prospect Capital Corporation (NASDAQ:PSEC) during the second quarter, HoldingsChannel reports. The firm purchased 27,945 shares of the financial services provider’s stock, valued at approximately $89,000.

A number of other hedge funds also recently bought and sold shares of PSEC. VSM Wealth Advisory LLC bought a new position in Prospect Capital in the 1st quarter worth about $25,000. American National Bank & Trust bought a new position in Prospect Capital in the 2nd quarter worth about $32,000. Significant Wealth Partners LLC bought a new position in Prospect Capital in the 2nd quarter worth about $36,000. Private Trust Co. NA boosted its stake in Prospect Capital by 38.5% in the 2nd quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider’s stock worth $37,000 after purchasing an additional 3,238 shares in the last quarter. Finally, Capital Advisors Ltd. LLC bought a new position in Prospect Capital in the 2nd quarter worth about $39,000. Institutional investors own 9.06% of the company’s stock.

Insider Buying and Selling at Prospect Capital

In related news, CEO John F. Barry purchased 925,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 25th. The shares were bought at an average price of $2.72 per share, for a total transaction of $2,516,000.00. Following the acquisition, the chief executive officer owned 86,067,158 shares of the company’s stock, valued at approximately $234,102,669.76. This represents a 1.09% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO M Grier Eliasek bought 370,000 shares of Prospect Capital stock in a transaction on Thursday, September 25th. The stock was acquired at an average price of $2.71 per share, for a total transaction of $1,002,700.00. Following the purchase, the chief operating officer owned 2,501,130 shares of the company’s stock, valued at approximately $6,778,062.30. This trade represents a 17.36% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 2,797,158 shares of company stock worth $7,485,119 in the last 90 days. 27.98% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a research note on Wednesday, October 8th. Wells Fargo & Company lowered their target price on shares of Prospect Capital from $3.00 to $2.50 and set an “underweight” rating on the stock in a research note on Thursday, August 28th. Finally, Wall Street Zen upgraded shares of Prospect Capital from a “sell” rating to a “hold” rating in a research note on Friday, September 26th. Two investment analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of “Sell” and an average target price of $2.50.

Prospect Capital Trading Down 1.1%

PSEC stock opened at $2.63 on Friday. Prospect Capital Corporation has a 1-year low of $2.57 and a 1-year high of $5.28. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 1.16. The company has a market capitalization of $1.22 billion, a price-to-earnings ratio of -1.96 and a beta of 0.85. The business has a 50 day simple moving average of $2.77 and a two-hundred day simple moving average of $3.13.

Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Tuesday, August 26th. The financial services provider reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04. The firm had revenue of $166.95 million during the quarter, compared to the consensus estimate of $167.08 million. Prospect Capital had a positive return on equity of 12.14% and a negative net margin of 69.68%.

Prospect Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Tuesday, November 18th. Investors of record on Wednesday, October 29th will be issued a dividend of $0.045 per share. This represents a c) annualized dividend and a yield of 20.5%. The ex-dividend date is Wednesday, October 29th. Prospect Capital’s dividend payout ratio is presently -40.30%.

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.