Caxton Associates LLP Purchases Shares of 370,075 Prospect Capital Corporation $PSEC

Key Points

• Caxton Associates LLP acquired 370,075 shares of Prospect Capital Corporation, valued at approximately $1.5 million, representing about 0.08% of the company's total stock as of the latest SEC filing.
• CEO John F. Barry purchased 319,000 shares at an average price of $3.16 each, increasing his ownership stake to approximately 83.6 million shares, valued at about $264 million.
• Prospect Capital reported a quarterly earnings per share of $0.17, surpassing analysts' expectations while facing a downgrade to a "sell" rating from Wall Street analysts, with a new price target set at $2.50.

Caxton Associates LLP acquired a new stake in Prospect Capital Corporation (NASDAQ:PSEC - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 370,075 shares of the financial services provider's stock, valued at approximately $1,517,000. Caxton Associates LLP owned about 0.08% of Prospect Capital at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Oppenheimer & Co. Inc. bought a new stake in Prospect Capital during the 1st quarter valued at $70,000. ProShare Advisors LLC raised its holdings in Prospect Capital by 18.5% during the 4th quarter. ProShare Advisors LLC now owns 69,988 shares of the financial services provider's stock valued at $302,000 after acquiring an additional 10,906 shares during the period. Alpine Global Management LLC bought a new stake in Prospect Capital during the 4th quarter valued at $346,000. BNP Paribas Financial Markets raised its holdings in Prospect Capital by 90.4% during the 4th quarter. BNP Paribas Financial Markets now owns 259,449 shares of the financial services provider's stock valued at $1,118,000 after acquiring an additional 123,200 shares during the period. Finally, Spire Wealth Management raised its holdings in Prospect Capital by 22.0% during the 1st quarter. Spire Wealth Management now owns 112,389 shares of the financial services provider's stock valued at $461,000 after acquiring an additional 20,245 shares during the period. Hedge funds and other institutional investors own 9.06% of the company's stock.

Prospect Capital Price Performance

NASDAQ:PSEC traded down $0.04 during midday trading on Monday, hitting $2.76. The company had a trading volume of 964,393 shares, compared to its average volume of 3,109,451. Prospect Capital Corporation has a 52-week low of $2.73 and a 52-week high of $5.57. The stock's fifty day moving average price is $3.05 and its 200-day moving average price is $3.44. The company has a market capitalization of $1.27 billion, a PE ratio of -2.06 and a beta of 0.85. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.70.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its earnings results on Tuesday, August 26th. The financial services provider reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.04. Prospect Capital had a negative net margin of 69.68% and a positive return on equity of 12.14%. The company had revenue of $166.95 million during the quarter, compared to analyst estimates of $167.08 million.

Prospect Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, November 18th. Investors of record on Wednesday, October 29th will be given a $0.045 dividend. The ex-dividend date is Wednesday, October 29th. This represents a c) annualized dividend and a yield of 19.6%. Prospect Capital's payout ratio is -40.30%.

Insider Transactions at Prospect Capital

In related news, CEO John F. Barry bought 623,300 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was bought at an average cost of $3.19 per share, for a total transaction of $1,988,327.00. Following the completion of the transaction, the chief executive officer owned 83,266,026 shares of the company's stock, valued at approximately $265,618,622.94. The trade was a 0.75% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 28.25% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on PSEC shares. Wall Street Zen cut shares of Prospect Capital from a "hold" rating to a "sell" rating in a report on Saturday, August 30th. Wells Fargo & Company decreased their price target on shares of Prospect Capital from $3.00 to $2.50 and set an "underweight" rating on the stock in a report on Thursday, August 28th. One investment analyst has rated the stock with a Sell rating, According to MarketBeat.com, Prospect Capital presently has a consensus rating of "Sell" and a consensus price target of $2.50.

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.