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ValuEngine Downgrades Prospect Capital (NASDAQ:PSEC) to Strong Sell

Last updated on Friday, June 5th, 2020 by MarketBeat

Prospect Capital (NASDAQ:PSEC) was downgraded by stock analysts at ValuEngine from a "sell" rating to a "strong sell" rating in a research report issued on Friday, ValuEngine reports.

A number of other analysts have also weighed in on PSEC. Zacks Investment Research upgraded shares of Prospect Capital from a "hold" rating to a "strong-buy" rating and set a $5.25 target price on the stock in a research note on Wednesday, May 20th. BidaskClub raised Prospect Capital from a "sell" rating to a "hold" rating in a report on Saturday, May 30th. Raymond James downgraded Prospect Capital from a "market perform" rating to an "underperform" rating in a report on Monday, April 20th. Finally, TheStreet downgraded Prospect Capital from a "c" rating to a "d+" rating in a report on Monday, May 18th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has assigned a strong buy rating to the company's stock. The stock currently has an average rating of "Hold" and a consensus price target of $5.25.

PSEC traded up $0.03 on Friday, hitting $5.45. The company had a trading volume of 2,520,415 shares, compared to its average volume of 3,308,686. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.74. The firm has a market cap of $2.01 billion, a P/E ratio of -14.34 and a beta of 0.96. The company's fifty day moving average price is $4.50 and its 200 day moving average price is $5.60. Prospect Capital has a 1 year low of $3.67 and a 1 year high of $6.76.

Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings results on Monday, May 11th. The financial services provider reported $0.19 earnings per share (EPS) for the quarter, topping the Zacks' consensus estimate of $0.14 by $0.05. The company had revenue of $154.50 million for the quarter, compared to analyst estimates of $132.87 million. Prospect Capital had a negative net margin of 21.78% and a positive return on equity of 8.74%. During the same period in the prior year, the firm earned $0.21 earnings per share. On average, analysts predict that Prospect Capital will post 0.72 earnings per share for the current year.

In other news, COO M Grier Eliasek acquired 100,000 shares of Prospect Capital stock in a transaction dated Tuesday, March 24th. The shares were acquired at an average cost of $4.82 per share, with a total value of $482,000.00. Following the purchase, the chief operating officer now directly owns 1,352,196 shares of the company's stock, valued at approximately $6,517,584.72. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO John F. Barry purchased 4,610,490 shares of Prospect Capital stock in a transaction that occurred on Monday, March 16th. The shares were bought at an average cost of $4.77 per share, for a total transaction of $21,992,037.30. Following the completion of the transaction, the chief executive officer now directly owns 53,431,018 shares in the company, valued at approximately $254,865,955.86. The disclosure for this purchase can be found here. Over the last three months, insiders acquired 11,759,468 shares of company stock worth $55,049,552. 25.80% of the stock is owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of PSEC. Marshall Wace LLP bought a new stake in shares of Prospect Capital in the 1st quarter valued at approximately $269,000. Daiwa Securities Group Inc. acquired a new position in Prospect Capital during the 4th quarter worth $257,000. Lido Advisors LLC boosted its position in Prospect Capital by 14.1% during the 4th quarter. Lido Advisors LLC now owns 37,651 shares of the financial services provider's stock worth $245,000 after acquiring an additional 4,666 shares during the period. Independent Advisor Alliance boosted its position in Prospect Capital by 819.9% during the 4th quarter. Independent Advisor Alliance now owns 1,694,434 shares of the financial services provider's stock worth $10,912,000 after acquiring an additional 1,510,231 shares during the period. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Prospect Capital by 452.9% in the fourth quarter. Tower Research Capital LLC TRC now owns 19,671 shares of the financial services provider's stock valued at $126,000 after buying an additional 16,113 shares during the period. Institutional investors own 11.43% of the company's stock.

About Prospect Capital

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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