Insider Buying: Prospect Capital (NASDAQ:PSEC) CEO Acquires $538,240.00 in Stock

Prospect Capital Corporation (NASDAQ:PSEC) CEO John Barry purchased 232,000 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were purchased at an average cost of $2.32 per share, with a total value of $538,240.00. Following the completion of the acquisition, the chief executive officer owned 86,689,351 shares in the company, valued at $201,119,294.32. The trade was a 0.27% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link.

Prospect Capital Stock Performance

NASDAQ:PSEC opened at $2.41 on Friday. The stock has a market cap of $1.21 billion, a P/E ratio of -6.51 and a beta of 0.82. The stock has a 50 day simple moving average of $2.54 and a 200 day simple moving average of $2.66. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.59. Prospect Capital Corporation has a 1-year low of $2.11 and a 1-year high of $3.50.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.05. The business had revenue of $150.07 million during the quarter, compared to analysts’ expectations of $163.23 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.

Prospect Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th will be paid a dividend of $0.035 per share. This represents a c) dividend on an annualized basis and a yield of 17.4%. The ex-dividend date is Thursday, August 27th. Prospect Capital’s dividend payout ratio (DPR) is -113.51%.

Hedge Funds Weigh In On Prospect Capital

Institutional investors have recently modified their holdings of the business. Catalyst Financial Partners LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $26,000. Navalign LLC acquired a new position in shares of Prospect Capital during the 3rd quarter worth $28,000. Bfsg LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $27,000. Ground Swell Capital LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $28,000. Finally, Schonfeld Strategic Advisors LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth $28,000. Institutional investors and hedge funds own 9.06% of the company’s stock.

Analyst Ratings Changes

PSEC has been the topic of a number of recent research reports. Wall Street Zen upgraded Prospect Capital from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a research note on Tuesday, April 21st. Finally, Wells Fargo & Company lowered their price objective on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a research note on Tuesday, May 12th. Two investment analysts have rated the stock with a Sell rating, According to MarketBeat.com, the stock currently has an average rating of “Sell” and an average target price of $2.00.

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.