John Barry Purchases 374,500 Shares of Prospect Capital (NASDAQ:PSEC) Stock

Key Points

• Prospect Capital CEO John Barry purchased 374,500 shares of the company's stock at an average price of $2.66, totaling approximately $996,170.
• The company recently announced a monthly dividend of $0.045 per share, reflecting an annualized yield of 20.6%, with a payout ratio of -40.30%.
• Several research firms have downgraded Prospect Capital, with an average rating of "Sell" and a consensus price target of $2.50.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry bought 374,500 shares of the company's stock in a transaction dated Monday, September 22nd. The stock was purchased at an average price of $2.66 per share, with a total value of $996,170.00. Following the completion of the transaction, the chief executive officer directly owned 84,017,000 shares in the company, valued at approximately $223,485,220. This represents a 0.45% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Prospect Capital Price Performance

NASDAQ:PSEC traded up $0.03 during trading hours on Wednesday, hitting $2.62. The company's stock had a trading volume of 3,823,990 shares, compared to its average volume of 3,182,096. Prospect Capital Corporation has a twelve month low of $2.57 and a twelve month high of $5.49. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 1.16. The stock has a fifty day simple moving average of $2.96 and a 200-day simple moving average of $3.37. The company has a market capitalization of $1.22 billion, a P/E ratio of -1.95 and a beta of 0.85.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last issued its earnings results on Tuesday, August 26th. The financial services provider reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates 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 negative net margin of 69.68% and a positive return on equity of 12.14%.

Prospect Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Tuesday, November 18th. Shareholders of record on Wednesday, October 29th will be given a $0.045 dividend. The ex-dividend date is Wednesday, October 29th. This represents a c) annualized dividend and a yield of 20.6%. Prospect Capital's dividend payout ratio (DPR) is currently -40.30%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on PSEC. Wall Street Zen cut Prospect Capital from a "hold" rating to a "sell" rating in a report on Saturday, August 30th. Wells Fargo & Company decreased their price target 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 equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Prospect Capital has an average rating of "Sell" and a consensus price target of $2.50.

Hedge Funds Weigh In On Prospect Capital

Hedge funds have recently bought and sold shares of the company. VSM Wealth Advisory LLC bought a new stake in Prospect Capital during the first quarter valued at $25,000. American National Bank & Trust acquired a new position in shares of Prospect Capital in the 2nd quarter valued at about $32,000. Significant Wealth Partners LLC bought a new stake in shares of Prospect Capital during the 2nd quarter valued at about $36,000. Private Trust Co. NA grew its stake in Prospect Capital by 38.5% during the second quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider's stock worth $37,000 after purchasing an additional 3,238 shares during the period. Finally, Foundations Investment Advisors LLC bought a new stake in Prospect Capital in the second quarter worth approximately $38,000. Institutional investors own 9.06% of the company's stock.

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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