Prospect Capital (NASDAQ:PSEC) Sets New 52-Week Low - What's Next?

Key Points

• Prospect Capital Corporation's stock reached a new 52-week low of $2.72, with a consensus rating of "Sell" and an average target price of $2.50 according to analysts.
• The company reported a quarterly EPS of $0.17, beating estimates, but has a negative net margin of 69.68% and a PE ratio of -2.01, raising concerns among investors.
• Despite the poor stock performance, CEO John F. Barry recently purchased $1,008,040 worth of company shares, indicating potential insider confidence in the business.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $2.72 and last traded at $2.73, with a volume of 1888062 shares. The stock had previously closed at $2.76.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Wall Street Zen lowered Prospect Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 30th. Wells Fargo & Company dropped their price objective on Prospect Capital from $3.00 to $2.50 and set an "underweight" rating for the company 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 has an average rating of "Sell" and a consensus target price of $2.50.

Prospect Capital Stock Performance

The stock has a 50-day moving average of $2.99 and a 200 day moving average of $3.39. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 1.16. The stock has a market capitalization of $1.20 billion, a price-to-earnings ratio of -1.93 and a beta of 0.85.

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, topping analysts' consensus estimates of $0.13 by $0.04. The firm had revenue of $166.95 million during the quarter, compared to analyst estimates of $167.08 million. Prospect Capital had a positive return on equity of 12.14% and a negative net margin of 69.68%.

Prospect Capital Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Tuesday, November 18th. Stockholders of record on Wednesday, October 29th will be given a dividend of $0.045 per share. This represents a c) annualized dividend and a dividend yield of 20.8%. The ex-dividend date is Wednesday, October 29th. Prospect Capital's payout ratio is presently -40.30%.

Hedge Funds Weigh In On Prospect Capital

Institutional investors have recently modified their holdings of the business. VSM Wealth Advisory LLC bought a new position in shares of Prospect Capital during the 1st quarter valued at about $25,000. American National Bank & Trust bought a new stake in Prospect Capital in the 2nd quarter valued at approximately $32,000. KG&L Capital Management LLC bought a new stake in Prospect Capital in the 1st quarter valued at approximately $41,000. Significant Wealth Partners LLC bought a new stake in Prospect Capital in the 2nd quarter valued at approximately $36,000. Finally, Private Trust Co. NA lifted its stake in Prospect Capital by 38.5% in the 2nd quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider's stock valued at $37,000 after acquiring an additional 3,238 shares in the last quarter. 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.