Insider Buying: Prospect Capital (NASDAQ:PSEC) CEO Purchases 232,000 Shares of Stock

Prospect Capital Corporation (NASDAQ:PSEC) CEO John Barry purchased 232,000 shares of Prospect Capital stock in a transaction on Friday, May 22nd. The shares were purchased at an average cost of $2.32 per share, with a total value of $538,240.00. Following the transaction, the chief executive officer owned 86,689,351 shares in the company, valued at approximately $201,119,294.32. The trade was a 0.27% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Prospect Capital Stock Up 0.9%

Shares of NASDAQ PSEC traded up $0.02 during trading hours on Wednesday, hitting $2.34. The company had a trading volume of 4,819,221 shares, compared to its average volume of 4,947,863. The stock has a market capitalization of $1.17 billion, a P/E ratio of -6.32 and a beta of 0.82. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59. Prospect Capital Corporation has a 1-year low of $2.11 and a 1-year high of $3.50. The firm’s 50 day moving average is $2.56 and its 200-day moving average is $2.66.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.16 EPS for the quarter, beating the consensus estimate of $0.11 by $0.05. The company had revenue of $150.07 million during the quarter, compared to the consensus estimate of $163.23 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.

Prospect Capital Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be issued a $0.035 dividend. This represents a c) annualized dividend and a dividend yield of 17.9%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital’s dividend payout ratio is presently -113.51%.

Institutional Investors Weigh In On Prospect Capital

A number of large investors have recently added to or reduced their stakes in PSEC. Catalyst Financial Partners LLC bought a new stake in Prospect Capital in the 4th quarter valued at $26,000. Bfsg LLC bought a new stake in Prospect Capital in the 4th quarter valued at $27,000. Navalign LLC bought a new stake in Prospect Capital in the 3rd quarter valued at $28,000. Ground Swell Capital LLC bought a new stake in Prospect Capital in the 4th quarter valued at $28,000. Finally, Schonfeld Strategic Advisors LLC bought a new stake in Prospect Capital in the 4th quarter valued at $28,000. Institutional investors own 9.06% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on PSEC shares. Wall Street Zen raised Prospect Capital from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Wells Fargo & Company cut their price objective on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating for the company in a report on Tuesday, May 12th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Prospect Capital in a report on Tuesday, April 21st. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company presently has an average rating of “Sell” and a consensus target price of $2.00.

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.