Caxton Associates LLP Makes New $1.52 Million Investment in 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 its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 370,075 shares of the financial services provider's stock, valued at approximately $1,517,000. Caxton Associates LLP owned approximately 0.08% of Prospect Capital as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. VSM Wealth Advisory LLC purchased a new stake in shares of Prospect Capital in the first quarter valued at $25,000. KG&L Capital Management LLC purchased a new position in Prospect Capital during the first quarter worth about $41,000. Ameriflex Group Inc. purchased a new position in Prospect Capital during the fourth quarter worth about $62,000. Comprehensive Money Management Services LLC purchased a new position in Prospect Capital during the fourth quarter worth about $72,000. Finally, Oppenheimer & Co. Inc. purchased a new position in Prospect Capital during the first quarter worth about $70,000. 9.06% of the stock is currently owned by hedge funds and other institutional investors.

Prospect Capital Stock Down 0.4%

Shares of NASDAQ:PSEC traded down $0.01 during mid-day trading on Friday, hitting $2.79. 2,254,541 shares of the company traded hands, compared to its average volume of 3,441,495. The firm has a market cap of $1.29 billion, a P/E ratio of -2.08 and a beta of 0.85. 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 Corporation has a 52-week low of $2.73 and a 52-week high of $5.57. The firm's 50 day simple moving average is $3.05 and its 200 day simple moving average is $3.45.

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

Prospect Capital Dividend Announcement

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 issued a dividend of $0.045 per share. This represents a c) annualized dividend and a dividend yield of 19.4%. The ex-dividend date is Wednesday, October 29th. Prospect Capital's dividend payout ratio (DPR) is presently -40.30%.

Insider Transactions at Prospect Capital

In other Prospect Capital news, CEO John F. Barry acquired 319,000 shares of the company's stock in a transaction on Monday, June 23rd. The shares were bought at an average cost of $3.16 per share, for a total transaction of $1,008,040.00. Following the acquisition, the chief executive officer directly owned 83,585,026 shares of the company's stock, valued at $264,128,682.16. This trade represents a 0.38% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 28.25% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

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