Prospect Capital (NASDAQ:PSEC) CEO Buys $1,021,440.00 in Stock

Key Points

• CEO Investment: Prospect Capital's CEO, John Barry, purchased 384,000 shares of the company's stock for approximately $1.02 million, increasing his ownership stake to 84.4 million shares valued at approximately $224.5 million.
• Dividend Announcement: The company declared a monthly dividend of $0.045 per share, representing an annualized yield of 19.8%, with a record date of October 29th for investors.
• Analyst Ratings: Analysts have recently downgraded Prospect Capital's stock, reducing the price target from $3.00 to $2.50 and assigning an overall "Sell" rating based on recent performance.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) CEO John Barry acquired 384,000 shares of the firm's stock in a transaction on Tuesday, September 23rd. The stock was purchased at an average price of $2.66 per share, with a total value of $1,021,440.00. Following the transaction, the chief executive officer owned 84,401,000 shares of the company's stock, valued at approximately $224,506,660. This trade represents a 0.46% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink.

Prospect Capital Price Performance

Shares of Prospect Capital stock traded up $0.16 during trading hours on Thursday, reaching $2.73. The stock had a trading volume of 7,907,826 shares, compared to its average volume of 3,216,088. The stock's 50 day moving average is $2.94 and its 200 day moving average is $3.36. The firm has a market capitalization of $1.27 billion, a PE ratio of -2.04 and a beta of 0.85. Prospect Capital Corporation has a twelve month low of $2.57 and a twelve month high of $5.41. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.70.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last issued its quarterly earnings data on Tuesday, August 26th. The financial services provider reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. The business had revenue of $166.95 million during 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 firm also recently disclosed a monthly dividend, which will be paid on Tuesday, November 18th. Investors of record on Wednesday, October 29th will be paid a dividend of $0.045 per share. This represents a c) annualized dividend and a yield of 19.8%. The ex-dividend date of this dividend is Wednesday, October 29th. Prospect Capital's dividend payout ratio is currently -40.30%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on PSEC shares. Wells Fargo & Company dropped their price objective on shares of Prospect Capital from $3.00 to $2.50 and set an "underweight" rating for the company in a research note on Thursday, August 28th. Wall Street Zen lowered shares of Prospect Capital from a "hold" rating to a "sell" rating in a report on Saturday, August 30th. One analyst has rated the stock with a Sell rating, According to data from MarketBeat, Prospect Capital has an average rating of "Sell" and a consensus price target of $2.50.

Institutional Trading of Prospect Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PSEC. VSM Wealth Advisory LLC acquired a new stake in Prospect Capital during the 1st quarter worth approximately $25,000. American National Bank & Trust acquired a new stake in Prospect Capital during the 2nd quarter worth approximately $32,000. Significant Wealth Partners LLC acquired a new stake in Prospect Capital during the 2nd quarter worth approximately $36,000. Private Trust Co. NA lifted its holdings in Prospect Capital by 38.5% during the 2nd quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider's stock worth $37,000 after buying an additional 3,238 shares in the last quarter. Finally, Foundations Investment Advisors LLC acquired a new stake in Prospect Capital during the 2nd quarter worth approximately $38,000. 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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