Prospect Capital Corporation Declares Monthly Dividend of $0.04 (NASDAQ:PSEC)

Key Points

• Prospect Capital declared a monthly dividend of $0.035 per share, payable October 21 to shareholders of record on September 28. The dividend implies an annualized yield of approximately 18.4%, while the 89.4% payout ratio indicates limited earnings coverage if profits decline.
• The company reported quarterly EPS of $0.15, exceeding analysts’ $0.11 estimate, and revenue of $155.76 million, above the $149.80 million consensus forecast. However, it posted a negative net margin of 10.42%.
• Prospect Capital shares opened at $2.28, within a 12-month range of $2.11 to $3.13. CEO John F. Barry bought more than 1.06 million shares, and insiders purchased approximately 2.5 million shares in the latest quarter.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) declared a monthly dividend on Thursday, August 20th. Shareholders of record on Monday, September 28th will be paid a dividend of 0.035 per share by the financial services provider on Wednesday, October 21st. This represents a c) dividend on an annualized basis and a yield of 18.4%. The ex-dividend date is Monday, September 28th.

Prospect Capital has decreased its dividend by an average of 0.0%per year over the last three years. Prospect Capital has a dividend payout ratio of 89.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline.

Prospect Capital Price Performance

PSEC opened at $2.28 on Friday. The firm has a 50-day moving average price of $2.24 and a 200-day moving average price of $2.47. Prospect Capital has a twelve month low of $2.11 and a twelve month high of $3.13. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59. The company has a market capitalization of $1.14 billion, a price-to-earnings ratio of -6.16 and a beta of 0.79.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its quarterly earnings results on Thursday, August 20th. The financial services provider reported $0.15 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.04. The company had revenue of $155.76 million for the quarter, compared to analysts' expectations of $149.80 million. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.03%.

Insider Buying and Selling at Prospect Capital

In related news, CEO John F. Barry acquired 1,067,648 shares of the firm's stock in a transaction that occurred on Tuesday, June 23rd. The shares were bought at an average cost of $2.27 per share, for a total transaction of $2,423,560.96. Following the completion of the transaction, the chief executive officer owned 89,213,725 shares in the company, valued at approximately $202,515,155.75. This trade represents a 1.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have purchased 2,500,648 shares of company stock valued at $5,678,121 in the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Prospect Capital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Catalyst Financial Partners LLC bought a new stake in shares of Prospect Capital during the 4th quarter worth $26,000. Ground Swell Capital LLC bought a new stake in Prospect Capital during the fourth quarter worth about $28,000. Schonfeld Strategic Advisors LLC purchased a new position in shares of Prospect Capital in the 4th quarter worth about $28,000. Evergreen Capital Management LLC bought a new position in shares of Prospect Capital during the 4th quarter valued at about $30,000. Finally, Foundations Investment Advisors LLC purchased a new position in shares of Prospect Capital during the 4th quarter valued at about $31,000. Hedge funds and other institutional investors own 9.06% of the company's stock.

About Prospect Capital

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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