Prospect Capital Corporation Announces Monthly Dividend of $0.05 (NASDAQ:PSEC)

Prospect Capital Corporation (NASDAQ:PSEC) announced a monthly dividend on Monday, May 12th, Wall Street Journal reports. Shareholders of record on Wednesday, August 27th will be paid a dividend of 0.045 per share by the financial services provider on Thursday, September 18th. This represents a c) annualized dividend and a yield of 18.8%. The ex-dividend date of this dividend is Wednesday, August 27th.

Prospect Capital has a payout ratio of 114.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Prospect Capital Price Performance

Shares of Prospect Capital stock opened at $2.87 on Monday. Prospect Capital has a 1-year low of $2.73 and a 1-year high of $5.57. The firm’s 50-day moving average price is $3.15 and its two-hundred day moving average price is $3.60. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of -3.34 and a beta of 0.85. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.62.

Insider Activity

In related news, CEO John F. Barry acquired 319,000 shares of the stock in a transaction dated Monday, June 23rd. The stock was bought at an average price of $3.16 per share, with a total value of $1,008,040.00. Following the completion of the transaction, the chief executive officer directly owned 83,585,026 shares of the company’s stock, valued at approximately $264,128,682.16. The trade was a 0.38% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 28.25% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Oppenheimer & Co. Inc. bought a new position in Prospect Capital in the first quarter valued at $70,000. ProShare Advisors LLC grew its position in Prospect Capital by 18.5% in the fourth quarter. ProShare Advisors LLC now owns 69,988 shares of the financial services provider’s stock valued at $302,000 after purchasing an additional 10,906 shares in the last quarter. Alpine Global Management LLC bought a new position in Prospect Capital in the fourth quarter valued at $346,000. BNP Paribas Financial Markets grew its position in Prospect Capital by 90.4% in the fourth quarter. BNP Paribas Financial Markets now owns 259,449 shares of the financial services provider’s stock valued at $1,118,000 after purchasing an additional 123,200 shares in the last quarter. Finally, Spire Wealth Management grew its position in Prospect Capital by 22.0% in the first quarter. Spire Wealth Management now owns 112,389 shares of the financial services provider’s stock valued at $461,000 after purchasing an additional 20,245 shares in the last quarter. Institutional investors own 9.06% of the company’s stock.

About Prospect Capital

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.