GraniteShares Advisors LLC Makes New $2.75 Million Investment in Prospect Capital Corporation $PSEC

Key Points

• GraniteShares Advisors LLC bought 1,059,980 shares of Prospect Capital (≈$2.75M) in Q4, making PSEC about 1.7% of its portfolio and its 8th-largest holding while representing roughly 0.23% ownership of the company.
• COO M Grier Eliasek purchased 942,800 shares at an average $2.92 (~$2.75M), boosting his direct stake to 3,443,930 shares (a 37.7% increase).
• Prospect announced a monthly dividend of $0.045 (implying ~19.5% yield) and recently beat quarterly EPS estimates, but analysts hold a consensus "Sell" rating with a $2.50 price target.

GraniteShares Advisors LLC purchased a new stake in Prospect Capital Corporation (NASDAQ:PSEC - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 1,059,980 shares of the financial services provider's stock, valued at approximately $2,745,000. Prospect Capital comprises approximately 1.7% of GraniteShares Advisors LLC's investment portfolio, making the stock its 8th largest holding. GraniteShares Advisors LLC owned approximately 0.23% of Prospect Capital as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of PSEC. Navalign LLC bought a new stake in shares of Prospect Capital during the 3rd quarter worth $28,000. Bfsg LLC bought a new position in Prospect Capital in the fourth quarter valued at about $27,000. A4 Wealth Advisors LLC acquired a new position in Prospect Capital during the third quarter worth about $34,000. Flagship Capital Management Inc. acquired a new position in Prospect Capital during the fourth quarter worth about $33,000. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Prospect Capital by 789.1% in the fourth quarter. Farther Finance Advisors LLC now owns 12,936 shares of the financial services provider's stock worth $34,000 after acquiring an additional 11,481 shares during the last quarter. Institutional investors and hedge funds own 9.06% of the company's stock.

Prospect Capital Trading Down 1.4%

Shares of PSEC stock opened at $2.77 on Tuesday. Prospect Capital Corporation has a twelve month low of $2.45 and a twelve month high of $3.77. The stock's fifty day simple moving average is $2.71 and its 200 day simple moving average is $2.70. 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 firm has a market capitalization of $1.35 billion, a P/E ratio of -3.42 and a beta of 0.84.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last posted its earnings results on Monday, February 9th. The financial services provider reported $0.19 EPS for the quarter, beating the consensus estimate of $0.10 by $0.09. The firm had revenue of $176.00 million during the quarter, compared to the consensus estimate 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 Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, May 19th. Investors of record on Tuesday, April 28th will be issued a $0.045 dividend. This represents a c) dividend on an annualized basis and a yield of 19.5%. The ex-dividend date is Tuesday, April 28th. Prospect Capital's dividend payout ratio (DPR) is -66.67%.

Insider Buying and Selling

In other Prospect Capital news, COO M Grier Eliasek bought 942,800 shares of the business's stock in a transaction that occurred on Wednesday, February 11th. The shares were acquired at an average cost of $2.92 per share, for a total transaction of $2,752,976.00. Following the transaction, the chief operating officer directly owned 3,443,930 shares in the company, valued at approximately $10,056,275.60. This 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 available at this hyperlink. 0.03% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

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

About Prospect Capital

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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