Wells Fargo & Company Has Lowered Expectations for Prospect Capital (NASDAQ:PSEC) Stock Price

Prospect Capital (NASDAQ:PSEC) had its price objective lowered by stock analysts at Wells Fargo & Company from $2.50 to $2.00 in a report issued on Tuesday,Benzinga reports. The firm presently has an “underweight” rating on the financial services provider’s stock. Wells Fargo & Company‘s target price indicates a potential downside of 12.47% from the stock’s previous close.

Several other research analysts have also recently issued reports on the stock. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a report on Tuesday, April 21st. Wall Street Zen lowered Prospect Capital from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Two equities research analysts have rated the stock with a Sell rating, According to MarketBeat, the company presently has a consensus rating of “Sell” and an average target price of $2.00.

Prospect Capital Stock Down 4.8%

Shares of NASDAQ PSEC opened at $2.29 on Tuesday. The business has a 50-day moving average of $2.66 and a two-hundred day moving average of $2.70. The company has a market capitalization of $1.14 billion, a price-to-earnings ratio of -6.18 and a beta of 0.82. Prospect Capital has a 1 year low of $2.31 and a 1 year high of $3.77. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.74 and a quick ratio of 0.74.

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 analysts’ consensus estimates of $0.11 by $0.05. Prospect Capital had a positive return on equity of 12.00% and a negative net margin of 10.42%.The business had revenue of $150.07 million for the quarter, compared to the consensus estimate of $163.23 million.

Insider Buying and Selling

In other Prospect Capital news, COO M Grier Eliasek purchased 942,800 shares of the firm’s stock in a transaction that occurred on Wednesday, February 11th. The stock was purchased at an average price of $2.92 per share, for a total transaction of $2,752,976.00. Following the purchase, the chief operating officer directly owned 3,443,930 shares in the company, valued at approximately $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.03% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Prospect Capital

A number of institutional investors and hedge funds have recently made changes to their positions in PSEC. Millennium Management LLC boosted its stake in shares of Prospect Capital by 356.3% during the third quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider’s stock worth $17,138,000 after buying an additional 4,866,312 shares during the period. Independent Financial Group LLC acquired a new position in Prospect Capital in the 1st quarter valued at about $8,644,000. Private Management Group Inc. purchased a new stake in Prospect Capital during the 4th quarter valued at approximately $8,352,000. Marshall Wace LLP raised its stake in Prospect Capital by 70.7% during the 3rd quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider’s stock valued at $18,338,000 after acquiring an additional 2,761,351 shares during the last quarter. Finally, Balyasny Asset Management L.P. lifted its position in Prospect Capital by 73.9% during the 2nd quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider’s stock worth $18,002,000 after acquiring an additional 2,405,299 shares during the period. 9.06% of the stock is owned by hedge funds and other institutional investors.

Prospect Capital Company Profile

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.