Prospect Capital (NASDAQ:PSEC) CEO John Barry Buys 1,067,648 Shares

Prospect Capital Corporation (NASDAQ:PSEC) CEO John Barry acquired 1,067,648 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The shares were purchased at an average cost of $2.27 per share, with a total value of $2,423,560.96. Following the acquisition, the chief executive officer owned 89,213,725 shares of the company’s stock, valued at approximately $202,515,155.75. This represents a 1.21% increase in their position. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Prospect Capital Trading Up 2.3%

Shares of PSEC opened at $2.27 on Friday. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.79 and a current ratio of 0.79. The company has a market cap of $1.14 billion, a price-to-earnings ratio of -6.13 and a beta of 0.78. The stock has a fifty day moving average price of $2.42 and a two-hundred day moving average price of $2.60. Prospect Capital Corporation has a 52-week low of $2.11 and a 52-week high of $3.50.

Prospect Capital (NASDAQ:PSEC) last announced its earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.05. The company had revenue of $150.07 million during the quarter, compared to analyst estimates of $163.23 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.

Prospect Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th will be given a $0.035 dividend. This represents a c) annualized dividend and a yield of 18.5%. The ex-dividend date is Thursday, August 27th. Prospect Capital’s dividend payout ratio (DPR) is presently -113.51%.

Analyst Ratings Changes

Several research firms have recently commented on PSEC. Wells Fargo & Company decreased their price target on shares of 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 upgraded shares of Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, May 29th. Finally, Wall Street Zen upgraded Prospect Capital from a “hold” rating to a “buy” rating in a research report on Sunday, June 21st. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, Prospect Capital currently has a consensus rating of “Sell” and a consensus price target of $2.00.

Key Headlines Impacting Prospect Capital

Here are the key news stories impacting Prospect Capital this week:

• Positive Sentiment: CEO John F. Barry bought 1,067,648 shares at $2.27, adding to his already large stake and signaling confidence in Prospect Capital’s outlook. Top Executive Makes Bold Move With Major Prospect Capital Stock Purchase
• Positive Sentiment: Barry also purchased 1,000,000 shares at $2.25, reinforcing the bullish insider signal and potentially helping support PSEC’s recent share price strength. John Barry Buys 1,000,000 Shares of Prospect Capital (NASDAQ:PSEC) Stock
• Neutral Sentiment: Prospect Capital also announced a monthly dividend of $0.035 per share, which keeps the stock attractive to income-focused investors, though the payout remains a point to monitor given the negative payout ratio. Prospect Capital stock information
• Negative Sentiment: Despite the insider buying, analyst sentiment is still weak, with a consensus rating of “Sell” and a target price below the recent trading range, which may limit upside. Prospect Capital Corporation: A Gold Nugget or Value Trap?

Institutional Investors Weigh In On Prospect Capital

A number of institutional investors have recently made changes to their positions in PSEC. Catalyst Financial Partners LLC acquired a new position in Prospect Capital in the fourth quarter valued at about $26,000. Bfsg LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth about $27,000. Navalign LLC acquired a new position in shares of Prospect Capital during the 3rd quarter worth about $28,000. Ground Swell Capital LLC bought a new stake in shares of Prospect Capital in the 4th quarter valued at about $28,000. Finally, Schonfeld Strategic Advisors LLC bought a new stake in shares of Prospect Capital in the 4th quarter valued at about $28,000. 9.06% of the stock is owned by institutional investors and hedge funds.

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.