Prospect Capital Corporation (NASDAQ:PSEC) Declares $0.05 Monthly Dividend

Key Points

• Prospect Capital Corporation declared a monthly dividend of $0.05 per share, with a significant annualized yield of 18.9%, to be paid on October 22nd to shareholders on record as of September 26th.
• The company has a payout ratio of 114.9%, indicating reliance on its balance sheet to fund its dividend payments as earnings alone are insufficient.
• Recently, CEO John F. Barry acquired 623,300 shares, increasing his position by 0.75%, which reflects confidence in the company's future prospects.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) declared a monthly dividend on Tuesday, August 26th. Shareholders of record on Friday, September 26th will be given a dividend of 0.045 per share by the financial services provider on Wednesday, October 22nd. This represents a c) annualized dividend and a yield of 18.9%. The ex-dividend date of this dividend is Friday, September 26th.

Prospect Capital has a payout ratio of 114.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Prospect Capital Trading Down 1.6%

PSEC traded down $0.05 during trading on Thursday, hitting $2.86. 1,148,591 shares of the stock were exchanged, compared to its average volume of 3,101,329. The firm has a 50 day simple moving average of $3.13 and a 200 day simple moving average of $3.58. The firm has a market cap of $1.27 billion, a price-to-earnings ratio of -2.13 and a beta of 0.85. Prospect Capital has a 1 year low of $2.73 and a 1 year high of $5.57. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.83 and a current ratio of 0.83.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its earnings results on Tuesday, August 26th. The financial services provider reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.04. The business had revenue of $166.95 million for the quarter, compared to analysts' expectations of $167.08 million. Prospect Capital had a positive return on equity of 11.77% and a negative net margin of 69.68%.

Insider Transactions at Prospect Capital

In related news, CEO John F. Barry purchased 623,300 shares of the firm's stock in a transaction on Friday, June 20th. The stock was bought at an average cost of $3.19 per share, with a total value of $1,988,327.00. Following the completion of the acquisition, the chief executive officer owned 83,266,026 shares of the company's stock, valued at $265,618,622.94. The trade was a 0.75% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 28.25% of the company's stock.

Hedge Funds Weigh In On Prospect Capital

Several institutional investors and hedge funds have recently modified their holdings of PSEC. Tower Research Capital LLC TRC increased its stake in shares of Prospect Capital by 732.0% in the 4th 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 in the last quarter. Aquatic Capital Management LLC increased its stake in Prospect Capital by 518.8% during the 4th quarter. Aquatic Capital Management LLC now owns 73,024 shares of the financial services provider's stock worth $315,000 after buying an additional 61,224 shares in the last quarter. Northern Trust Corp increased its stake in Prospect Capital by 1.1% during the 4th quarter. Northern Trust Corp now owns 598,848 shares of the financial services provider's stock worth $2,581,000 after buying an additional 6,641 shares in the last quarter. BNP Paribas Financial Markets boosted its holdings in shares of Prospect Capital by 90.4% during the 4th quarter. BNP Paribas Financial Markets now owns 259,449 shares of the financial services provider's stock worth $1,118,000 after purchasing an additional 123,200 shares during the last quarter. Finally, Balyasny Asset Management L.P. lifted its holdings in Prospect Capital by 6,177.6% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,478,914 shares of the financial services provider's stock valued at $10,684,000 after acquiring an additional 2,439,426 shares during the last quarter. Hedge funds and other 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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