Prospect Capital (NASDAQ:PSEC) Issues Quarterly Earnings Results

Key Points

• Prospect Capital missed quarterly expectations: It reported a loss of $0.10 per share versus consensus earnings of $0.10, while revenue of $151.74 million also fell short of the $163.14 million forecast.
• The stock declined to $1.44 during Wednesday trading, near its 12-month low of $1.40. Analysts’ consensus rating is “Sell,” with an average price target of $2.00.
• The company declared a monthly dividend of $0.035 per share, equivalent to a 29.2% annualized yield; its reported payout ratio is 840%. CEO John Barry also bought about 1.22 million shares.

Prospect Capital (NASDAQ:PSEC - Get Free Report) announced its quarterly earnings data on Wednesday. The financial services provider reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.20), FiscalAI reports. The company had revenue of $151.74 million during the quarter, compared to analysts' expectations of $163.14 million. Prospect Capital had a net margin of 19.33% and a return on equity of 12.15%.

Prospect Capital Stock Performance

NASDAQ PSEC traded down $0.11 during trading on Wednesday, reaching $1.44. The company's stock had a trading volume of 17,908,068 shares, compared to its average volume of 5,117,441. The business's fifty day moving average price is $1.94 and its 200-day moving average price is $2.36. Prospect Capital has a twelve month low of $1.40 and a twelve month high of $3.12. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.87 and a current ratio of 0.87. The firm has a market cap of $768.70 million, a price-to-earnings ratio of 28.80 and a beta of 0.84.

Prospect Capital Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Wednesday, October 28th will be paid a $0.0350 dividend. The ex-dividend date is Wednesday, October 28th. This represents a $0.42 dividend on an annualized basis and a yield of 29.2%. Prospect Capital's payout ratio is currently 840.00%.

Insiders Place Their Bets

In other news, CEO John Barry. III acquired 1,217,105 shares of the company's stock in a transaction on Friday, September 4th. The shares were bought at an average cost of $2.24 per share, with a total value of $2,726,315.20. Following the purchase, the chief executive officer owned 90,479,988 shares of the company's stock, valued at $202,675,173.12. This represents a 1.36% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 25.94% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities analysts have commented on PSEC shares. Weiss Ratings lowered shares of Prospect Capital from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, August 26th. Zacks Research upgraded shares of Prospect Capital to a "hold" rating in a report on Monday, October 5th. Finally, Wall Street Zen lowered shares of Prospect Capital from a "buy" rating to a "hold" rating in a research note on Saturday, August 22nd. One investment analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Sell" and an average price target of $2.00.

About Prospect Capital

Prospect Capital Corporation NASDAQ: PSEC is a business development company that provides financing and investment capital to middle-market companies. The company primarily invests in privately held businesses through first-lien and second-lien loans, mezzanine debt, and other debt securities, while also making equity and equity-related investments in selected companies.

Prospect Capital invests across a range of industries and has additional exposure to areas such as real estate, structured credit, and financial services.

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