Ameriflex Group Inc. Acquires New Stake in Prospect Capital Co. (NASDAQ:PSEC)

Ameriflex Group Inc. acquired a new stake in Prospect Capital Co. (NASDAQ:PSEC) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 14,486 shares of the financial services provider’s stock, valued at approximately $62,000.

Several other hedge funds have also recently added to or reduced their stakes in PSEC. Cherry Creek Investment Advisors Inc. raised its stake in Prospect Capital by 199.8% in the 4th quarter. Cherry Creek Investment Advisors Inc. now owns 47,838 shares of the financial services provider’s stock valued at $206,000 after purchasing an additional 31,879 shares during the last quarter. EMC Capital Management grew its holdings in Prospect Capital by 107.6% in the 4th quarter. EMC Capital Management now owns 20,762 shares of the financial services provider’s stock valued at $89,000 after buying an additional 10,762 shares in the last quarter. Spire Wealth Management grew its holdings in Prospect Capital by 265.2% in the 4th quarter. Spire Wealth Management now owns 92,144 shares of the financial services provider’s stock valued at $397,000 after buying an additional 66,911 shares in the last quarter. Choreo LLC purchased a new stake in Prospect Capital in the 4th quarter valued at $1,086,000. Finally, Strategic Financial Concepts LLC grew its holdings in Prospect Capital by 131.8% in the 4th quarter. Strategic Financial Concepts LLC now owns 49,134 shares of the financial services provider’s stock valued at $212,000 after buying an additional 27,935 shares in the last quarter. 9.06% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Prospect Capital

In other Prospect Capital news, Director William Gremp purchased 19,100 shares of the stock in a transaction dated Tuesday, March 18th. The stock was acquired at an average cost of $4.29 per share, for a total transaction of $81,939.00. Following the acquisition, the director now owns 75,153 shares in the company, valued at $322,406.37. This trade represents a 34.07% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO John F. Barry purchased 24,000 shares of the stock in a transaction dated Monday, March 24th. The shares were acquired at an average price of $4.24 per share, with a total value of $101,760.00. Following the completion of the acquisition, the chief executive officer now owns 82,594,540 shares in the company, valued at approximately $350,200,849.60. This trade represents a 0.03% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 2,548,000 shares of company stock worth $10,970,715. 28.25% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Wells Fargo & Company dropped their target price on Prospect Capital from $3.50 to $3.00 and set an “underweight” rating for the company in a report on Monday, May 12th. Wall Street Zen upgraded Prospect Capital from a “sell” rating to a “hold” rating in a report on Saturday, April 12th.

Prospect Capital Stock Up 1.8%

Shares of NASDAQ:PSEC opened at $3.40 on Wednesday. The stock has a market cap of $1.52 billion, a P/E ratio of -17.00 and a beta of 0.93. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.60. Prospect Capital Co. has a 52-week low of $3.30 and a 52-week high of $5.72. The business has a fifty day moving average of $3.69 and a two-hundred day moving average of $4.14.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings results on Thursday, May 8th. The financial services provider reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.05. The business had revenue of $170.72 million during the quarter, compared to analysts’ expectations of $174.29 million. Prospect Capital had a return on equity of 12.31% and a net margin of 1.18%.

Prospect Capital Announces Dividend

The firm also recently declared a dividend, which will be paid on Wednesday, June 18th. Stockholders of record on Thursday, May 29th will be issued a dividend of $0.045 per share. This represents a dividend yield of 15.88%. The ex-dividend date of this dividend is Wednesday, May 28th. Prospect Capital’s dividend payout ratio is presently -62.79%.

Prospect Capital 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.