PFG Investments LLC Sells 610,555 Shares of Prospect Capital Corporation $PSEC

Key Points

• PFG Investments LLC significantly reduced its holdings in Prospect Capital Corporation by selling 610,555 shares, which is a 97.8% decrease, leaving the fund with only 13,864 shares valued at $44,000.
• Prospect Capital plans to pay a monthly dividend of $0.045 on November 18th, representing an annualized yield of 19.6%.
• The stock's recent performance shows a current price of $2.75 with an average target price downgrade to $2.50 by Wells Fargo, maintaining an overall average "Sell" rating.

PFG Investments LLC reduced its position in shares of Prospect Capital Corporation (NASDAQ:PSEC - Free Report) by 97.8% in the second quarter, according to its most recent filing with the SEC. The fund owned 13,864 shares of the financial services provider's stock after selling 610,555 shares during the quarter. PFG Investments LLC's holdings in Prospect Capital were worth $44,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of PSEC. VSM Wealth Advisory LLC bought a new position in shares of Prospect Capital during the 1st quarter valued at approximately $25,000. American National Bank & Trust bought a new stake in Prospect Capital in the second quarter worth $32,000. Significant Wealth Partners LLC bought a new stake in Prospect Capital in the second quarter worth $36,000. KG&L Capital Management LLC bought a new stake in Prospect Capital in the first quarter worth $41,000. Finally, Elwood & Goetz Wealth Advisory Group LLC bought a new stake in Prospect Capital in the second quarter worth $52,000. 9.06% of the stock is currently owned by institutional investors.

Prospect Capital Stock Performance

Shares of Prospect Capital stock opened at $2.75 on Wednesday. The firm has a market cap of $1.28 billion, a P/E ratio of -2.05 and a beta of 0.85. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.70. Prospect Capital Corporation has a 12 month low of $2.57 and a 12 month high of $5.41. The stock's fifty day moving average price is $2.82 and its 200-day moving average price is $3.26.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its quarterly 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 firm had revenue of $166.95 million for the quarter, compared to analyst estimates 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. Shareholders of record on Wednesday, October 29th will be paid a $0.045 dividend. This represents a c) annualized dividend and a yield of 19.6%. The ex-dividend date is Wednesday, October 29th. Prospect Capital's payout ratio is -40.30%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on PSEC. Wall Street Zen upgraded Prospect Capital from a "sell" rating to a "hold" rating in a research report on Friday, September 26th. Wells Fargo & Company lowered their price target on Prospect Capital from $3.00 to $2.50 and set an "underweight" rating for the company in a research report on Thursday, August 28th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Prospect Capital in a research report on Saturday, September 27th. Two research analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the stock presently has an average rating of "Sell" and an average price target of $2.50.

Insider Activity

In related news, CEO John F. Barry bought 925,000 shares of the business's stock in a transaction on Thursday, September 25th. The shares were bought at an average price of $2.72 per share, for a total transaction of $2,516,000.00. Following the completion of the purchase, the chief executive officer directly owned 86,067,158 shares of the company's stock, valued at approximately $234,102,669.76. This trade represents a 1.09% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO M Grier Eliasek bought 370,000 shares of the business's stock in a transaction on Thursday, September 25th. The stock was bought at an average price of $2.71 per share, for a total transaction of $1,002,700.00. Following the purchase, the chief operating officer directly owned 2,501,130 shares of the company's stock, valued at $6,778,062.30. The trade was a 17.36% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 2,797,158 shares of company stock worth $7,485,119 in the last quarter. 27.98% of the stock is owned by insiders.

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.

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