Prospect Capital (NASDAQ:PSEC) CEO Purchases $2,250,000.00 in Stock

by · The Markets Daily

Prospect Capital Corporation (NASDAQ:PSEC – Get Free Report) CEO John Barry acquired 1,000,000 shares of the stock in a transaction dated Monday, June 22nd. The stock was bought at an average price of $2.25 per share, with a total value of $2,250,000.00. Following the purchase, the chief executive officer directly owned 88,146,077 shares in the company, valued at $198,328,673.25. This represents a 1.15% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Prospect Capital Stock Up 1.8%

Prospect Capital stock opened at $2.31 on Friday. The company has a market capitalization of $1.16 billion, a PE ratio of -6.24 and a beta of 0.78. Prospect Capital Corporation has a 12-month low of $2.11 and a 12-month high of $3.50. The firm’s fifty day moving average is $2.41 and its 200 day moving average is $2.60. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59.

Prospect Capital (NASDAQ:PSEC – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.05. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.03%. The business had revenue of $150.07 million during the quarter, compared to analysts’ expectations of $163.23 million.

Prospect Capital Dividend Announcement

The company 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. The ex-dividend date is Thursday, August 27th. This represents a c) annualized dividend and a dividend yield of 18.2%. Prospect Capital’s dividend payout ratio (DPR) is currently -113.51%.

Institutional Trading of Prospect Capital

A number of hedge funds have recently bought and sold shares of PSEC. Concorde Asset Management LLC increased its position in shares of Prospect Capital by 18.3% during the 1st quarter. Concorde Asset Management LLC now owns 359,960 shares of the financial services provider’s stock valued at $956,000 after purchasing an additional 55,680 shares during the last quarter. Royal Bank of Canada raised its position in Prospect Capital by 42.6% in the first quarter. Royal Bank of Canada now owns 81,016 shares of the financial services provider’s stock worth $212,000 after acquiring an additional 24,188 shares during the period. Cetera Investment Advisers boosted its stake in Prospect Capital by 23.9% in the first quarter. Cetera Investment Advisers now owns 316,704 shares of the financial services provider’s stock valued at $827,000 after acquiring an additional 61,182 shares during the last quarter. Spartan Wealth Advisory Services LLC purchased a new position in Prospect Capital in the first quarter valued at about $50,000. Finally, Modera Wealth Management LLC bought a new position in shares of Prospect Capital during the 1st quarter valued at approximately $69,000. 9.06% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Wall Street Zen raised Prospect Capital from a “hold” rating to a “buy” rating in a research note on Sunday, June 21st. Wells Fargo & Company decreased their price objective on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating for the company in a report on Tuesday, May 12th. Finally, Weiss Ratings upgraded Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, May 29th. Two research analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has an average rating of “Sell” and a consensus price target of $2.00.

Read Our Latest Stock Analysis on Prospect Capital

About Prospect Capital

(Get Free Report)

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.

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