Prospect Capital (NASDAQ:PSEC) CEO Acquires $1,941,833.96 in Stock

Key Points

• CEO John Barry of Prospect Capital purchased 741,158 shares at an average price of $2.62, totaling nearly $1.94 million, increasing his ownership stake by 0.88%.
• The company declared a monthly dividend of $0.045, payable on November 18th, representing an annualized yield of 20.7%.
• Wall Street analysts have recently downgraded the stock to a consensus "Sell" rating, with a price target reduced to $2.50.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry acquired 741,158 shares of Prospect Capital stock in a transaction that occurred on Wednesday, September 24th. The stock was acquired at an average cost of $2.62 per share, for a total transaction of $1,941,833.96. Following the purchase, the chief executive officer owned 85,142,158 shares of the company's stock, valued at $223,072,453.96. The trade was a 0.88% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Prospect Capital Price Performance

Shares of NASDAQ PSEC traded down $0.12 during mid-day trading on Friday, reaching $2.61. 4,144,024 shares of the company were exchanged, compared to its average volume of 3,219,498. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.70. The stock has a market capitalization of $1.21 billion, a PE ratio of -1.95 and a beta of 0.85. Prospect Capital Corporation has a 52 week low of $2.57 and a 52 week high of $5.41. The company's 50 day moving average price is $2.93 and its 200 day moving average price is $3.35.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 26th. The financial services provider reported $0.17 EPS for the quarter, beating the consensus estimate of $0.13 by $0.04. The firm had revenue of $166.95 million for the quarter, compared to the consensus estimate 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 Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Tuesday, November 18th. Investors of record on Wednesday, October 29th will be paid a $0.045 dividend. The ex-dividend date is Wednesday, October 29th. This represents a c) dividend on an annualized basis and a yield of 20.7%. Prospect Capital's payout ratio is currently -40.30%.

Wall Street Analyst Weigh In

PSEC has been the topic of several recent research reports. Wall Street Zen lowered shares of Prospect Capital from a "hold" rating to a "sell" rating in a research report on Saturday, August 30th. Wells Fargo & Company decreased their price target on Prospect Capital from $3.00 to $2.50 and set an "underweight" rating on the stock in a research note on Thursday, August 28th. One analyst has rated the stock with a Sell rating, According to data from MarketBeat, Prospect Capital presently has a consensus rating of "Sell" and a consensus price target of $2.50.

Hedge Funds Weigh In On Prospect Capital

A number of hedge funds have recently added to or reduced their stakes in the stock. Private Trust Co. NA increased its stake in shares of Prospect Capital by 38.5% in the second quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider's stock worth $37,000 after acquiring an additional 3,238 shares during the period. Raymond James Financial Inc. raised its position in Prospect Capital by 0.5% during the 2nd quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider's stock worth $2,685,000 after buying an additional 3,880 shares during the last quarter. Inspire Advisors LLC boosted its stake in shares of Prospect Capital by 17.1% during the 2nd quarter. Inspire Advisors LLC now owns 27,432 shares of the financial services provider's stock worth $87,000 after purchasing an additional 4,015 shares during the last quarter. D.A. Davidson & CO. lifted its holdings in shares of Prospect Capital by 1.2% during the 1st quarter. D.A. Davidson & CO. now owns 346,881 shares of the financial services provider's stock worth $1,422,000 after acquiring an additional 4,050 shares during the period. Finally, Cetera Investment Advisers lifted its position in shares of Prospect Capital by 1.9% during the second quarter. Cetera Investment Advisers now owns 262,719 shares of the financial services provider's stock worth $835,000 after purchasing an additional 4,978 shares in the last quarter. 9.06% of the stock is currently owned by institutional investors.

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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