Prospect Capital (NASDAQ:PSEC) Share Price Passes Above 200 Day Moving Average on Disappointing Earnings

Key Points

• Prospect reported Q earnings that missed expectations (EPS $0.05 vs. $0.11 expected; revenue $150.07M vs. $163.23M), yet the stock briefly crossed above its 200‑day moving average to $2.78 and last traded around $2.75.
• The company declared a monthly dividend of $0.045 (ex‑div Apr 28, payable May 19), implying an annualized yield of ~19.6%, though the dividend payout ratio is reported at -66.67%.
• Analysts have a consensus "Sell" rating with an average target of $2.50, but the COO bought 942,800 shares at about $2.92 (≈$2.75M), increasing his stake to roughly 3.44M shares.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday following a better than expected earnings announcement. The stock has a 200-day moving average of $2.70 and traded as high as $2.78. Prospect Capital shares last traded at $2.75, with a volume of 3,693,561 shares.

The financial services provider reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.06). Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.The business had revenue of $150.07 million during the quarter, compared to the consensus estimate of $163.23 million.

Prospect Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, May 19th. Investors of record on Tuesday, April 28th will be given a $0.045 dividend. The ex-dividend date is Tuesday, April 28th. This represents a c) annualized dividend and a yield of 19.6%. Prospect Capital's dividend payout ratio (DPR) is currently -66.67%.

Analyst Ratings Changes

A number of research firms have recently commented on PSEC. Weiss Ratings reissued a "sell (d)" rating on shares of Prospect Capital in a research note on Tuesday, April 21st. Wall Street Zen downgraded Prospect Capital from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Two analysts have rated the stock with a Sell rating, According to data from MarketBeat, Prospect Capital has a consensus rating of "Sell" and an average target price of $2.50.

Insider Activity at Prospect Capital

In related news, COO M Grier Eliasek bought 942,800 shares of the business's stock in a transaction dated Wednesday, February 11th. The shares were bought at an average cost of $2.92 per share, with a total value of $2,752,976.00. Following the completion of the transaction, the chief operating officer directly owned 3,443,930 shares of the company's stock, valued at approximately $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Catalyst Financial Partners LLC acquired a new position in Prospect Capital in the 4th quarter worth about $26,000. Bfsg LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $27,000. Navalign LLC acquired a new position in shares of Prospect Capital during the 3rd quarter worth $28,000. Ground Swell Capital LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $28,000. Finally, Schonfeld Strategic Advisors LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $28,000. 9.06% of the stock is owned by institutional investors and hedge funds.

Prospect Capital Trading Down 1.1%

The company's 50 day moving average price is $2.67 and its 200 day moving average price is $2.70. The company has a market cap of $1.34 billion, a price-to-earnings ratio of -3.40 and a beta of 0.82. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.74 and a current ratio of 0.74.

About Prospect Capital

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.

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.