Kingstone Capital Partners Texas LLC Acquires New Position in Prospect Capital Corporation $PSEC

Key Points

• Kingstone Capital Partners Texas LLC has acquired 23,798,618 shares of Prospect Capital Corporation, constituting approximately 5.34% of the company's stock, valued at around $75.68 million.
• Recent analyst ratings have been negative, with Wall Street Zen downgrading the stock from "hold" to "sell" and Wells Fargo lowering the price target from $3.00 to $2.50.
• Prospect Capital announced a monthly dividend of $0.045 per share, to be paid on November 18th, which represents an annualized yield of 20.3%.

Kingstone Capital Partners Texas LLC bought a new position in shares of Prospect Capital Corporation (NASDAQ:PSEC - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 23,798,618 shares of the financial services provider's stock, valued at approximately $75,680,000. Kingstone Capital Partners Texas LLC owned approximately 5.34% of Prospect Capital as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. VSM Wealth Advisory LLC bought a new stake in shares of Prospect Capital during the 1st quarter worth approximately $25,000. KG&L Capital Management LLC bought a new stake in shares of Prospect Capital during the 1st quarter worth approximately $41,000. Ameriflex Group Inc. bought a new stake in shares of Prospect Capital during the 4th quarter worth approximately $62,000. Comprehensive Money Management Services LLC bought a new stake in shares of Prospect Capital during the 4th quarter worth approximately $72,000. Finally, Oppenheimer & Co. Inc. bought a new stake in shares of Prospect Capital during the 1st quarter worth approximately $70,000. Institutional investors own 9.06% of the company's stock.

Prospect Capital Stock Performance

Shares of PSEC traded up $0.05 during trading hours on Tuesday, hitting $2.64. The company's stock had a trading volume of 2,148,470 shares, compared to its average volume of 3,167,826. The company has a market cap of $1.22 billion, a price-to-earnings ratio of -1.97 and a beta of 0.85. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 1.16. The business has a 50 day simple moving average of $2.97 and a two-hundred day simple moving average of $3.37. Prospect Capital Corporation has a 52-week low of $2.57 and a 52-week high of $5.52.

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

Prospect Capital Dividend Announcement

The company also recently declared 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) dividend on an annualized basis and a yield of 20.5%. The ex-dividend date is Wednesday, October 29th. Prospect Capital's dividend payout ratio is currently -40.30%.

Analysts Set New Price Targets

Several equities analysts recently commented on PSEC shares. Wells Fargo & Company dropped their price objective on shares of Prospect Capital from $3.00 to $2.50 and set an "underweight" rating for the company in a research note on Thursday, August 28th. Wall Street Zen downgraded shares of Prospect Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 30th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Sell" and an average price target of $2.50.

Prospect Capital Profile

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.