Thomas J. Herzfeld Advisors Inc. Has $9.49 Million Stake in Prospect Capital Corporation $PSEC

Key Points

• Thomas J. Herzfeld Advisors Inc. increased its holdings in Prospect Capital Corporation by 26.6% during the first quarter, now owning approximately 2.3 million shares valued at $9.49 million, making it the seventh largest holding in their portfolio.
• CEO John F. Barry purchased 319,000 shares of Prospect Capital for about $1.008 million, raising his ownership in the company to approximately $264 million.
• Wells Fargo has downgraded its price target for Prospect Capital from $3.50 to $3.00, giving it a "sell" rating as analysts express concerns over the company.

Thomas J. Herzfeld Advisors Inc. lifted its position in Prospect Capital Corporation (NASDAQ:PSEC - Free Report) by 26.6% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,315,582 shares of the financial services provider's stock after purchasing an additional 487,171 shares during the quarter. Prospect Capital accounts for 3.2% of Thomas J. Herzfeld Advisors Inc.'s portfolio, making the stock its 7th largest position. Thomas J. Herzfeld Advisors Inc. owned about 0.52% of Prospect Capital worth $9,494,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. VSM Wealth Advisory LLC acquired a new position in shares of Prospect Capital in the first quarter valued at $25,000. KG&L Capital Management LLC bought a new stake in Prospect Capital in the first quarter valued at $41,000. Ameriflex Group Inc. bought a new stake in Prospect Capital in the fourth quarter valued at $62,000. Tower Research Capital LLC TRC grew its position in Prospect Capital by 732.0% in the fourth quarter. Tower Research Capital LLC TRC now owns 14,560 shares of the financial services provider's stock valued at $63,000 after acquiring an additional 12,810 shares during the period. Finally, Global Assets Advisory LLC grew its position in Prospect Capital by 33.4% in the fourth quarter. Global Assets Advisory LLC now owns 15,998 shares of the financial services provider's stock valued at $69,000 after acquiring an additional 4,006 shares during the period. 9.06% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Wells Fargo & Company lowered their price target on Prospect Capital from $3.00 to $2.50 and set an "underweight" rating on the stock in a research report on Thursday. Wall Street Zen cut Prospect Capital from a "hold" rating to a "sell" rating in a research report on Saturday. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, the company presently has an average rating of "Sell" and an average price target of $2.50.

Prospect Capital Price Performance

Shares of PSEC stock traded up $0.08 during trading hours on Friday, hitting $2.98. 3,691,087 shares of the company's stock were exchanged, compared to its average volume of 4,416,722. The stock's 50-day moving average is $3.12 and its 200-day moving average is $3.55. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 0.83. The stock has a market cap of $1.38 billion, a price-to-earnings ratio of -2.22 and a beta of 0.85. Prospect Capital Corporation has a 52 week low of $2.73 and a 52 week high of $5.57.

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

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. The ex-dividend date of this dividend is Wednesday, October 29th. This represents a c) annualized dividend and a yield of 18.1%. Prospect Capital's dividend payout ratio is presently -40.30%.

Insiders Place Their Bets

In related news, CEO John F. Barry bought 623,300 shares of the business's stock in a transaction on Friday, June 20th. The shares were purchased at an average price of $3.19 per share, with a total value of $1,988,327.00. Following the completion of the purchase, the chief executive officer owned 83,266,026 shares of the company's stock, valued at $265,618,622.94. This represents a 0.75% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 28.25% of the company's stock.

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.