XML Financial LLC Has $226,000 Holdings in Prospect Capital Corporation $PSEC

Key Points

• XML Financial LLC slashed its Prospect Capital stake by 86.6% in the fourth quarter, selling more than 561,000 shares and ending with 87,115 shares valued at about $226,000.
• Prospect Capital reported Q earnings of $0.16 per share, beating the $0.11 consensus estimate, though revenue of $150.07 million fell short of expectations.
• The company declared a monthly dividend of $0.035 per share, implying an annualized yield of about 18.8%, while analysts currently maintain a Sell consensus rating with an average price target of $2.00.

XML Financial LLC cut its holdings in Prospect Capital Corporation (NASDAQ:PSEC - Free Report) by 86.6% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 87,115 shares of the financial services provider's stock after selling 561,109 shares during the period. XML Financial LLC's holdings in Prospect Capital were worth $226,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Van ECK Associates Corp raised its holdings in shares of Prospect Capital by 9.2% in the third quarter. Van ECK Associates Corp now owns 10,255,640 shares of the financial services provider's stock valued at $28,203,000 after purchasing an additional 866,860 shares during the last quarter. Marshall Wace LLP raised its holdings in shares of Prospect Capital by 70.7% in the third quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider's stock valued at $18,338,000 after purchasing an additional 2,761,351 shares during the last quarter. Millennium Management LLC raised its holdings in shares of Prospect Capital by 356.3% in the third quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider's stock valued at $17,138,000 after purchasing an additional 4,866,312 shares during the last quarter. Balyasny Asset Management L.P. raised its holdings in shares of Prospect Capital by 73.9% in the second quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider's stock valued at $18,002,000 after purchasing an additional 2,405,299 shares during the last quarter. Finally, UBS Group AG raised its holdings in shares of Prospect Capital by 44.5% in the fourth quarter. UBS Group AG now owns 4,989,986 shares of the financial services provider's stock valued at $12,924,000 after purchasing an additional 1,536,808 shares during the last quarter. 9.06% of the stock is currently owned by institutional investors and hedge funds.

Prospect Capital Price Performance

NASDAQ:PSEC opened at $2.24 on Tuesday. Prospect Capital Corporation has a 1-year low of $2.11 and a 1-year high of $3.50. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.59. The firm has a fifty day simple moving average of $2.51 and a 200 day simple moving average of $2.63. The stock has a market capitalization of $1.12 billion, a PE ratio of -6.05 and a beta of 0.78.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last released its earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.05. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.03%. The business had revenue of $150.07 million during the quarter, compared to analysts' expectations of $163.23 million.

Prospect Capital Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be paid a $0.035 dividend. The ex-dividend date of this dividend is Thursday, August 27th. This represents a c) annualized dividend and a dividend yield of 18.8%. Prospect Capital's dividend payout ratio (DPR) is currently -113.51%.

Insider Buying and Selling at Prospect Capital

In related news, CEO John F. Barry acquired 433,000 shares of Prospect Capital stock in a transaction on Tuesday, May 26th. The stock was purchased at an average cost of $2.32 per share, with a total value of $1,004,560.00. Following the completion of the transaction, the chief executive officer directly owned 87,122,376 shares in the company, valued at $202,123,912.32. This trade represents a 0.50% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

PSEC has been the topic of a number of recent research reports. Wall Street Zen upgraded shares of Prospect Capital from a "hold" rating to a "buy" rating in a report on Saturday, May 16th. Wells Fargo & Company lowered their price objective on shares of Prospect Capital from $2.50 to $2.00 and set an "underweight" rating on the stock in a report on Tuesday, May 12th. Finally, Weiss Ratings raised shares of Prospect Capital from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, May 29th. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat, the company currently has a consensus rating of "Sell" and an average price target of $2.00.

Prospect Capital Profile

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.

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