Prospect Capital Corporation Announces Monthly Dividend of $0.05 (NASDAQ:PSEC)

Prospect Capital Corporation (NASDAQ:PSEC) declared a monthly dividend on Thursday, November 6th. Shareholders of record on Monday, December 29th will be paid a dividend of 0.045 per share by the financial services provider on Wednesday, January 21st. This represents a c) dividend on an annualized basis and a dividend yield of 20.3%. The ex-dividend date of this dividend is Monday, December 29th.

Prospect Capital has decreased its dividend by an average of 0.0%annually over the last three years. Prospect Capital has a payout ratio of 114.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Prospect Capital Price Performance

Shares of NASDAQ:PSEC traded up $0.11 on Friday, hitting $2.66. The stock had a trading volume of 2,474,877 shares, compared to its average volume of 3,265,882. The firm’s 50 day moving average price is $2.74 and its 200-day moving average price is $3.09. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.16 and a current ratio of 1.16. Prospect Capital has a twelve month low of $2.52 and a twelve month high of $4.88. The company has a market capitalization of $1.23 billion, a price-to-earnings ratio of -1.98 and a beta of 0.86.

Prospect Capital (NASDAQ:PSEC) last announced its earnings results on Thursday, November 6th. The financial services provider reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.06. The business had revenue of $119.44 million during the quarter, compared to analysts’ expectations of $169.53 million. Prospect Capital had a negative net margin of 69.68% and a positive return on equity of 12.14%.

Insiders Place Their Bets

In other news, CEO John F. Barry purchased 925,000 shares of the business’s stock in a transaction dated Thursday, September 25th. The shares were acquired at an average price of $2.72 per share, with a total value of $2,516,000.00. Following the completion of the purchase, the chief executive officer directly owned 86,067,158 shares of the company’s stock, valued at $234,102,669.76. The trade was a 1.09% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO M Grier Eliasek acquired 370,000 shares of the stock in a transaction that occurred on Thursday, September 25th. The stock was purchased at an average price of $2.71 per share, with a total value of $1,002,700.00. Following the completion of the transaction, 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. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 2,797,158 shares of company stock valued at $7,485,119. 27.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Prospect Capital

Institutional investors and hedge funds have recently modified their holdings of the business. Envestnet Asset Management Inc. boosted its stake in Prospect Capital by 24.8% in the first quarter. Envestnet Asset Management Inc. now owns 1,181,787 shares of the financial services provider’s stock valued at $4,845,000 after acquiring an additional 235,139 shares during the last quarter. M&T Bank Corp acquired a new position in shares of Prospect Capital in the 1st quarter valued at $102,000. Private Advisor Group LLC boosted its position in shares of Prospect Capital by 48.0% in the 1st quarter. Private Advisor Group LLC now owns 589,686 shares of the financial services provider’s stock worth $2,418,000 after purchasing an additional 191,354 shares during the last quarter. Denali Advisors LLC grew its stake in shares of Prospect Capital by 16.4% during the first quarter. Denali Advisors LLC now owns 128,237 shares of the financial services provider’s stock worth $526,000 after purchasing an additional 18,099 shares during the period. Finally, Choreo LLC increased its holdings in Prospect Capital by 22.2% in the first quarter. Choreo LLC now owns 308,801 shares of the financial services provider’s stock valued at $1,278,000 after purchasing an additional 56,064 shares during the last quarter. 9.06% of the stock is owned by institutional investors.

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.