GraniteShares Advisors LLC Invests $2.75 Million in Prospect Capital Corporation $PSEC

Key Points

• GraniteShares bought 1,059,980 shares of Prospect Capital (~$2.75 million) in Q4, making PSEC about 2.4% of its portfolio and the firm's 5th largest position (GraniteShares owned ~0.23% of Prospect at quarter end).
• COO M. Grier Eliasek personally acquired 942,800 shares at $2.92 (~$2.75 million), increasing his holdings to 3,443,930 shares (a 37.7% rise), signaling significant insider buying.
• Analyst sentiment is pessimistic with a consensus “Sell” rating and an average price target of $2.50, even as Prospect beat quarterly EPS and revenue estimates; the company also announced a $0.045 monthly dividend (annualized yield ~20.7%) amid a negative net margin.

GraniteShares Advisors LLC bought a new stake in Prospect Capital Corporation (NASDAQ:PSEC - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,059,980 shares of the financial services provider's stock, valued at approximately $2,745,000. Prospect Capital makes up approximately 2.4% of GraniteShares Advisors LLC's investment portfolio, making the stock its 5th biggest position. GraniteShares Advisors LLC owned approximately 0.23% of Prospect Capital at the end of the most recent reporting period.

Other institutional investors have also bought and sold shares of the company. Millennium Management LLC lifted its stake in Prospect Capital by 356.3% during the 3rd quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider's stock valued at $17,138,000 after acquiring an additional 4,866,312 shares in the last quarter. Marshall Wace LLP purchased a new stake in shares of Prospect Capital in the second quarter valued at about $12,424,000. Balyasny Asset Management L.P. lifted its position in shares of Prospect Capital by 73.9% during the second quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider's stock valued at $18,002,000 after purchasing an additional 2,405,299 shares in the last quarter. Two Sigma Investments LP lifted its position in shares of Prospect Capital by 99.9% during the third quarter. Two Sigma Investments LP now owns 4,096,924 shares of the financial services provider's stock valued at $11,267,000 after purchasing an additional 2,047,189 shares in the last quarter. Finally, Van ECK Associates Corp boosted its holdings in Prospect Capital by 9.2% during the third quarter. Van ECK Associates Corp now owns 10,255,640 shares of the financial services provider's stock worth $28,203,000 after purchasing an additional 866,860 shares during the last quarter. Institutional investors own 9.06% of the company's stock.

Insider Transactions at Prospect Capital

In other Prospect Capital news, COO M Grier Eliasek acquired 942,800 shares of the company's stock in a transaction on Wednesday, February 11th. The shares were acquired at an average cost of $2.92 per share, with a total value of $2,752,976.00. Following the completion of the acquisition, the chief operating officer directly owned 3,443,930 shares in the company, valued at $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Weiss Ratings reiterated a "sell (d)" rating on shares of Prospect Capital in a research note on Thursday, January 22nd. Wall Street Zen downgraded Prospect Capital from a "buy" rating to a "hold" rating in a research report on Saturday, February 14th. Two research analysts have rated the stock with a Sell rating, According to MarketBeat, the stock presently has a consensus rating of "Sell" and an average price target of $2.50.

Prospect Capital Stock Performance

Shares of PSEC stock opened at $2.61 on Friday. Prospect Capital Corporation has a 12-month low of $2.45 and a 12-month high of $4.07. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 0.62. The company has a 50 day moving average of $2.72 and a 200-day moving average of $2.70. The firm has a market cap of $1.27 billion, a P/E ratio of -3.22 and a beta of 0.84.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its quarterly earnings data on Monday, February 9th. The financial services provider reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.09. The business had revenue of $176.00 million during the quarter, compared to analyst estimates of $156.34 million. Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.

Prospect Capital Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, May 19th. Investors of record on Tuesday, April 28th will be paid a $0.045 dividend. This represents a c) dividend on an annualized basis and a yield of 20.7%. The ex-dividend date is Tuesday, April 28th. Prospect Capital's payout ratio is currently -66.67%.

Prospect Capital Profile

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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