Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) saw unusually-high trading volume on Friday following a stronger than expected earnings report. Approximately 3,601,482 shares were traded during mid-day trading, a decline of 20% from the previous session's volume of 4,496,402 shares.The stock last traded at $2.4960 and had previously closed at $2.75.
The financial services provider reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.05. Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.The company had revenue of $150.07 million during the quarter, compared to analysts' expectations of $163.23 million.
Prospect Capital Dividend Announcement
The firm also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th will be given a dividend of $0.035 per share. The ex-dividend date is Thursday, August 27th. This represents a c) annualized dividend and a yield of 17.0%. Prospect Capital's payout ratio is presently -66.67%.
Key Prospect Capital News
Here are the key news stories impacting Prospect Capital this week:
- Positive Sentiment: Quarterly EPS / NII per share beat analysts: Prospect reported NII per share of $0.16 (vs. consensus ~$0.11), a beat that supports near-term income credibility. Quarterly Press Release
- Positive Sentiment: Company declared a monthly dividend of $0.035/share (annualized yield ~15.3%) with a sequence of ex-dividend/record/payment dates through Sept — continuity of monthly distributions typically attracts income-focused investors. Dividend & Results Release
- Neutral Sentiment: Company scheduled a conference call to discuss results (May 8), which will provide management commentary and could move shares depending on tone and forward guidance. Earnings Call Notice
- Negative Sentiment: Revenue missed expectations: reported revenue $150.07M vs. consensus ~$163.23M — a notable shortfall that can damp investor enthusiasm. Quarterly Press Release
- Negative Sentiment: Underlying income trends weakened: NII declined quarter-over-quarter (NII $78.5M vs. $90.9M prior quarter; NII per share down from $0.19 to $0.16) and the company reported a negative net margin (~-39.6%), raising questions about distribution sustainability despite the high yield. Results Release
Wall Street Analyst Weigh In
PSEC has been the subject of several research reports. Wall Street Zen downgraded Prospect Capital from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Weiss Ratings reiterated a "sell (d)" rating on shares of Prospect Capital in a report on Tuesday, April 21st. Two analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the stock currently has a consensus rating of "Sell" and a consensus price target of $2.50.
View Our Latest Stock Analysis on PSEC
Insider Transactions at Prospect Capital
In other Prospect Capital news, COO M Grier Eliasek acquired 942,800 shares of the stock in a transaction on Wednesday, February 11th. The stock was purchased at an average price of $2.92 per share, for a total transaction of $2,752,976.00. Following the purchase, the chief operating officer directly owned 3,443,930 shares in the company, valued at $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.03% of the stock is owned by company insiders.
Institutional Investors Weigh In On Prospect Capital
A number of hedge funds have recently bought and sold shares of the business. Van ECK Associates Corp grew its stake in Prospect Capital by 9.2% during the 3rd quarter. Van ECK Associates Corp now owns 10,255,640 shares of the financial services provider's stock valued at $28,203,000 after purchasing an additional 866,860 shares in the last quarter. Marshall Wace LLP lifted its stake in Prospect Capital by 70.7% in the third quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider's stock valued at $18,338,000 after buying an additional 2,761,351 shares during the last quarter. Millennium Management LLC lifted its stake in Prospect Capital by 356.3% in the third quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider's stock valued at $17,138,000 after buying an additional 4,866,312 shares during the last quarter. Balyasny Asset Management L.P. lifted its stake in Prospect Capital by 73.9% in the second quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider's stock valued at $18,002,000 after buying an additional 2,405,299 shares during the last quarter. Finally, UBS Group AG increased its position in Prospect Capital by 44.5% in the 4th quarter. UBS Group AG now owns 4,989,986 shares of the financial services provider's stock valued at $12,924,000 after acquiring an additional 1,536,808 shares during the period. Institutional investors and hedge funds own 9.06% of the company's stock.
Prospect Capital Trading Down 10.0%
The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $1.20 billion, a price-to-earnings ratio of -3.09 and a beta of 0.82. The firm has a 50-day moving average of $2.67 and a 200 day moving average of $2.70.
About Prospect Capital
(
Get Free Report)
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.
Featured Articles
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Prospect Capital, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Prospect Capital wasn't on the list.
While Prospect Capital currently has a Sell rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat's analysts have just released their top five short plays for May 2026. Learn which stocks have the most short interest and how to trade them. Click the link to see which companies made the list.
Get This Free Report
