Short Interest in Prospect Capital Corporation (PSEC) Increases By 8.5%

Prospect Capital Corporation (NASDAQ:PSEC) was the target of a large growth in short interest in November. As of November 30th, there was short interest totalling 32,356,872 shares, a growth of 8.5% from the November 15th total of 29,826,012 shares. Based on an average trading volume of 4,798,404 shares, the days-to-cover ratio is currently 6.7 days. Approximately 10.8% of the company’s stock are short sold.

In related news, CFO Brian H. Oswald bought 35,000 shares of the company’s stock in a transaction on Friday, November 10th. The shares were acquired at an average price of $5.75 per share, with a total value of $201,250.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider M Grier Eliasek bought 65,000 shares of the company’s stock in a transaction on Friday, November 10th. The shares were bought at an average cost of $5.65 per share, for a total transaction of $367,250.00. The disclosure for this purchase can be found here. Insiders have acquired a total of 2,328,659 shares of company stock worth $15,824,732 in the last ninety days. Insiders own 7.10% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. Trexquant Investment LP purchased a new position in Prospect Capital in the 3rd quarter worth $108,000. Regal Investment Advisors LLC raised its stake in Prospect Capital by 19.3% in the 2nd quarter. Regal Investment Advisors LLC now owns 16,819 shares of the financial services provider’s stock worth $137,000 after acquiring an additional 2,720 shares during the last quarter. Advisory Services Network LLC grew its position in Prospect Capital by 0.6% during the 2nd quarter. Advisory Services Network LLC now owns 17,741 shares of the financial services provider’s stock worth $144,000 after purchasing an additional 105 shares during the period. Jane Street Group LLC acquired a new stake in Prospect Capital during the 3rd quarter worth about $127,000. Finally, Sumitomo Mitsui Trust Holdings Inc. grew its position in Prospect Capital by 8.3% during the 2nd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 19,659 shares of the financial services provider’s stock worth $160,000 after purchasing an additional 1,507 shares during the period. Institutional investors own 15.72% of the company’s stock.

Shares of Prospect Capital (PSEC) opened at $6.78 on Wednesday. The company has a market capitalization of $2,436.27, a price-to-earnings ratio of 8.35 and a beta of 0.56. The company has a current ratio of 2.63, a quick ratio of 2.63 and a debt-to-equity ratio of 0.78. Prospect Capital has a twelve month low of $5.51 and a twelve month high of $9.58.

Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Wednesday, November 8th. The financial services provider reported $0.18 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.01). The firm had revenue of $158.58 million during the quarter, compared to analysts’ expectations of $161.00 million. Prospect Capital had a return on equity of 8.63% and a net margin of 27.00%. The business’s revenue was down 11.8% on a year-over-year basis. During the same quarter last year, the business earned $0.22 EPS. sell-side analysts expect that Prospect Capital will post 0.72 earnings per share for the current year.

The company also recently announced a monthly dividend, which will be paid on Thursday, February 15th. Investors of record on Wednesday, January 31st will be paid a $0.06 dividend. The ex-dividend date of this dividend is Tuesday, January 30th. This represents a $0.72 dividend on an annualized basis and a yield of 10.62%. Prospect Capital’s dividend payout ratio (DPR) is 144.00%.

Several brokerages have recently commented on PSEC. TheStreet lowered Prospect Capital from a “b-” rating to a “c+” rating in a report on Wednesday, September 27th. ValuEngine upgraded Prospect Capital from a “hold” rating to a “buy” rating in a report on Friday, December 1st. BidaskClub lowered Prospect Capital from a “hold” rating to a “sell” rating in a report on Tuesday, August 15th. BMO Capital Markets decreased their price objective on Prospect Capital from $7.00 to $6.00 and set a “market perform” rating for the company in a report on Friday, November 10th. Finally, Zacks Investment Research lowered Prospect Capital from a “hold” rating to a “sell” rating in a report on Friday, September 1st. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $6.17.

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About Prospect Capital

Prospect Capital Corporation is a financial services company. The Company primarily lends to and invests in middle market privately held companies. The Company is a closed-end investment company. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

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