Prospect Capital (NASDAQ:PSEC) Downgraded to “Sell” at ValuEngine

ValuEngine downgraded shares of Prospect Capital (NASDAQ:PSEC) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning, ValuEngine reports.

Other research analysts have also issued research reports about the company. Zacks Investment Research upgraded Prospect Capital from a sell rating to a hold rating in a research report on Wednesday, October 30th. BidaskClub lowered Prospect Capital from a hold rating to a sell rating in a research report on Saturday, November 2nd. Finally, TheStreet lowered Prospect Capital from a b- rating to a c rating in a research report on Friday, September 13th. Four investment analysts have rated the stock with a sell rating and one has assigned a hold rating to the company. The stock has a consensus rating of Sell and a consensus target price of $6.00.

Shares of NASDAQ:PSEC traded up $0.12 during mid-day trading on Tuesday, hitting $6.49. 1,996,200 shares of the company traded hands, compared to its average volume of 1,596,908. Prospect Capital has a 52-week low of $5.70 and a 52-week high of $7.06. The firm has a market cap of $2.35 billion, a P/E ratio of 7.64 and a beta of 0.76. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.25 and a current ratio of 1.25. The firm’s 50 day simple moving average is $6.52 and its 200 day simple moving average is $6.58.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings data on Wednesday, November 6th. The financial services provider reported $0.05 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.14). Prospect Capital had a net margin of 20.53% and a return on equity of 9.36%. The company had revenue of $161.88 million for the quarter, compared to analyst estimates of $162.98 million. During the same quarter in the prior year, the firm earned $0.23 EPS. Equities research analysts expect that Prospect Capital will post 0.74 EPS for the current fiscal year.

The firm also recently announced a monthly dividend, which will be paid on Thursday, December 19th. Shareholders of record on Friday, November 29th will be paid a dividend of $0.06 per share. This represents a $0.72 annualized dividend and a yield of 11.09%. The ex-dividend date of this dividend is Wednesday, November 27th. Prospect Capital’s payout ratio is currently 84.71%.

In other Prospect Capital news, CEO John F. Barry bought 237,857 shares of the business’s stock in a transaction on Tuesday, September 3rd. The shares were purchased at an average price of $6.34 per share, with a total value of $1,508,013.38. Following the purchase, the chief executive officer now directly owns 39,906,051 shares of the company’s stock, valued at $253,004,363.34. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO John F. Barry bought 139,761 shares of the business’s stock in a transaction on Thursday, August 29th. The shares were acquired at an average cost of $6.40 per share, for a total transaction of $894,470.40. Following the purchase, the chief executive officer now directly owns 39,460,914 shares in the company, valued at $252,549,849.60. The disclosure for this purchase can be found here. 11.30% of the stock is owned by insiders.

A number of institutional investors have recently made changes to their positions in the business. LSV Asset Management raised its stake in Prospect Capital by 2.6% during the 2nd quarter. LSV Asset Management now owns 5,847,808 shares of the financial services provider’s stock valued at $38,186,000 after acquiring an additional 147,208 shares in the last quarter. Bank of Montreal Can raised its stake in shares of Prospect Capital by 64.1% in the 2nd quarter. Bank of Montreal Can now owns 2,894,500 shares of the financial services provider’s stock worth $18,901,000 after buying an additional 1,131,000 shares in the last quarter. Van ECK Associates Corp raised its stake in shares of Prospect Capital by 5.1% in the 2nd quarter. Van ECK Associates Corp now owns 2,094,710 shares of the financial services provider’s stock worth $13,678,000 after buying an additional 101,436 shares in the last quarter. Skandinaviska Enskilda Banken AB publ bought a new stake in shares of Prospect Capital in the 2nd quarter worth $6,151,000. Finally, California Public Employees Retirement System raised its stake in shares of Prospect Capital by 56.2% in the 3rd quarter. California Public Employees Retirement System now owns 870,300 shares of the financial services provider’s stock worth $5,735,000 after buying an additional 313,200 shares in the last quarter. 12.35% of the stock is currently owned by hedge funds and other institutional investors.

Prospect Capital Company 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.

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