Prospect Capital Corporation $PSEC Shares Sold by XML Financial LLC

Key Points

• XML Financial LLC reduced its stake in Prospect Capital Corporation by 28.3%, selling 253,904 shares, and now holds 644,604 shares valued at approximately $2.05 million.
• Prospect Capital recently announced a monthly dividend of $0.045 per share, with a yield of 20.5%, payable on November 18th, following a successful quarterly earnings report.
• Insider purchases included COO M Grier Eliasek buying 370,000 shares and CEO John F. Barry acquiring 925,000 shares, signaling confidence in the company's future.

XML Financial LLC lessened its stake in Prospect Capital Corporation (NASDAQ:PSEC - Free Report) by 28.3% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 644,604 shares of the financial services provider's stock after selling 253,904 shares during the quarter. XML Financial LLC owned 0.14% of Prospect Capital worth $2,050,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. American National Bank & Trust acquired a new stake in Prospect Capital during the 2nd quarter valued at $32,000. Littlejohn Financial Services Inc. purchased a new position in shares of Prospect Capital in the 2nd quarter worth about $187,000. Significant Wealth Partners LLC acquired a new position in Prospect Capital during the second quarter valued at approximately $36,000. Family Wealth Partners LLC increased its holdings in Prospect Capital by 91.8% in the 2nd quarter. Family Wealth Partners LLC now owns 81,186 shares of the financial services provider's stock valued at $258,000 after purchasing an additional 38,853 shares in the last quarter. Finally, Kingstone Capital Partners Texas LLC acquired a new stake in shares of Prospect Capital in the second quarter valued at about $75,680,000. 9.06% of the stock is owned by institutional investors and hedge funds.

Prospect Capital Trading Up 1.1%

Prospect Capital stock opened at $2.64 on Tuesday. Prospect Capital Corporation has a 52-week low of $2.57 and a 52-week high of $5.41. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of -1.97 and a beta of 0.85. The firm has a 50-day moving average price of $2.90 and a two-hundred day moving average price of $3.32.

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 company had revenue of $166.95 million for the quarter, compared to analyst estimates 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 Announces Dividend

The firm 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 dividend of $0.045 per share. The ex-dividend date of this dividend is Wednesday, October 29th. This represents a c) annualized dividend and a yield of 20.5%. Prospect Capital's payout ratio is presently -40.30%.

Analyst Ratings Changes

Several equities analysts have recently commented on PSEC shares. Wells Fargo & Company reduced their target price on 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 upgraded Prospect Capital from a "sell" rating to a "hold" rating in a research note on Friday. One investment analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock has a consensus rating of "Sell" and an average target price of $2.50.

Insiders Place Their Bets

In other Prospect Capital news, COO M Grier Eliasek purchased 370,000 shares of the firm's stock in a transaction dated Thursday, September 25th. The stock was bought at an average price of $2.71 per share, with a total value of $1,002,700.00. Following the completion of the purchase, the chief operating officer owned 2,501,130 shares in the company, valued at $6,778,062.30. This trade represents a 17.36% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John F. Barry acquired 925,000 shares of the business's stock in a transaction that occurred 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 owned 86,067,158 shares of the company's stock, valued at approximately $234,102,669.76. This represents a 1.09% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 2,797,158 shares of company stock valued at $7,485,119 in the last quarter. 27.98% of the stock is currently 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.

Want to see what other hedge funds are holding PSEC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Prospect Capital Corporation (NASDAQ:PSEC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.