Prospect Capital (NASDAQ:PSEC) Hits New 1-Year Low – Here’s Why

Shares of Prospect Capital Corporation (NASDAQ:PSEC) hit a new 52-week low on Monday . The company traded as low as $2.45 and last traded at $2.5050, with a volume of 1378388 shares changing hands. The stock had previously closed at $2.51.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a research report on Wednesday, October 8th. Wall Street Zen raised shares of Prospect Capital from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Two research analysts have rated the stock with a Sell rating, According to MarketBeat, the company has an average rating of “Sell” and an average price target of $2.50.

Prospect Capital Trading Down 1.0%

The company has a market cap of $1.17 billion, a price-to-earnings ratio of -2.89 and a beta of 0.85. The business’s fifty day moving average price is $2.65 and its 200 day moving average price is $2.87. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.22 and a quick ratio of 1.22.

Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings data on Thursday, November 6th. The financial services provider reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.06. Prospect Capital had a positive return on equity of 12.29% and a negative net margin of 42.50%.The company had revenue of $119.44 million during the quarter, compared to the consensus estimate of $169.53 million.

Prospect Capital Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, February 18th. Stockholders of record on Wednesday, January 28th will be paid a $0.045 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 21.7%. The ex-dividend date of this dividend is Wednesday, January 28th. Prospect Capital’s payout ratio is currently -62.79%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of PSEC. Tudor Investment Corp ET AL grew its stake in shares of Prospect Capital by 12.1% in the 3rd quarter. Tudor Investment Corp ET AL now owns 2,604,286 shares of the financial services provider’s stock valued at $7,162,000 after buying an additional 282,119 shares during the period. Tweedy Browne Co LLC lifted its stake in Prospect Capital by 108.3% during the 3rd quarter. Tweedy Browne Co LLC now owns 139,622 shares of the financial services provider’s stock valued at $384,000 after acquiring an additional 72,590 shares in the last quarter. Mayport LLC purchased a new position in Prospect Capital during the third quarter worth about $57,000. CANADA LIFE ASSURANCE Co grew its holdings in shares of Prospect Capital by 23.2% in the third quarter. CANADA LIFE ASSURANCE Co now owns 393,598 shares of the financial services provider’s stock valued at $1,034,000 after acquiring an additional 74,053 shares in the last quarter. Finally, Caxton Associates LLP grew its stake in Prospect Capital by 70.5% in the 3rd quarter. Caxton Associates LLP now owns 1,176,623 shares of the financial services provider’s stock valued at $3,236,000 after purchasing an additional 486,564 shares during the period. 9.06% of the stock is owned by institutional investors.

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.