Trexquant Investment LP Grows Stock Holdings in Prospect Capital Corporation $PSEC

Key Points

• Trexquant Investment LP increased its stake in Prospect Capital Corporation (PSEC) by 176.1%, owning approximately 915,452 shares valued at $3.75 million as of its latest SEC filing.
• Prospect Capital announced a monthly dividend of $0.045 per share, which represents an annual yield of 18.6%, with the dividend payment scheduled for November 18th.
• Wall Street analysts have generally rated the stock as a "Sell," with Wells Fargo recently lowering its target price from $3.00 to $2.50.

Trexquant Investment LP increased its stake in shares of Prospect Capital Corporation (NASDAQ:PSEC - Free Report) by 176.1% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 915,452 shares of the financial services provider's stock after purchasing an additional 583,844 shares during the period. Trexquant Investment LP owned approximately 0.21% of Prospect Capital worth $3,753,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in PSEC. VSM Wealth Advisory LLC purchased a new position in shares of Prospect Capital during the first quarter valued at approximately $25,000. KG&L Capital Management LLC purchased a new position in shares of Prospect Capital during the first quarter valued at approximately $41,000. Ameriflex Group Inc. purchased a new position in shares of Prospect Capital during the fourth quarter valued at approximately $62,000. Tower Research Capital LLC TRC raised its holdings in shares of Prospect Capital by 732.0% during 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 purchasing an additional 12,810 shares during the last quarter. Finally, Global Assets Advisory LLC grew its position in Prospect Capital by 33.4% during the fourth quarter. Global Assets Advisory LLC now owns 15,998 shares of the financial services provider's stock valued at $69,000 after buying an additional 4,006 shares during the period. 9.06% of the stock is owned by hedge funds and other institutional investors.

Prospect Capital Price Performance

Shares of NASDAQ:PSEC opened at $2.91 on Wednesday. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 0.83. Prospect Capital Corporation has a 1-year low of $2.73 and a 1-year high of $5.57. The company has a market capitalization of $1.35 billion, a P/E ratio of -2.17 and a beta of 0.85. The firm's 50 day simple moving average is $3.11 and its two-hundred day simple moving average is $3.53.

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

Prospect Capital Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, November 18th. Shareholders of record on Wednesday, October 29th will be issued 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 18.6%. Prospect Capital's payout ratio is currently -40.30%.

Insiders Place Their Bets

In other news, CEO John F. Barry purchased 623,300 shares of the stock in a transaction on Friday, June 20th. The shares were acquired at an average price of $3.19 per share, with a total value of $1,988,327.00. Following the completion of the acquisition, the chief executive officer directly owned 83,266,026 shares of the company's stock, valued at $265,618,622.94. This trade represents a 0.75% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 28.25% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Wall Street Zen lowered shares of Prospect Capital from a "hold" rating to a "sell" rating in a research report on Saturday. Wells Fargo & Company cut their target price on shares of Prospect Capital from $3.00 to $2.50 and set an "underweight" rating for the company in a research report on Thursday, August 28th. One analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Prospect Capital currently has an average rating of "Sell" and an average target price of $2.50.

Prospect Capital Company 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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