Prospect Capital (NASDAQ:PSEC) Hits New 52-Week Low – What’s Next?

Prospect Capital Corporation (NASDAQ:PSEC)’s share price reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $2.18 and last traded at $2.18, with a volume of 6529077 shares changing hands. The stock had previously closed at $2.25.

Analyst Ratings Changes

Several equities analysts recently issued reports on PSEC shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Prospect Capital in a report on Tuesday, April 21st. Wells Fargo & Company decreased their price target on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a report on Tuesday. Finally, Wall Street Zen cut 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, Prospect Capital has an average rating of “Sell” and a consensus target price of $2.00.

Prospect Capital Stock Performance

The firm has a fifty day moving average of $2.63 and a 200-day moving average of $2.69. The firm has a market cap of $1.09 billion, a P/E ratio of -5.89 and a beta of 0.82. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 0.59.

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

Prospect Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th will be issued a dividend of $0.035 per share. The ex-dividend date is Thursday, August 27th. This represents a c) dividend on an annualized basis and a yield of 19.3%. Prospect Capital’s dividend payout ratio (DPR) is -145.95%.

Hedge Funds Weigh In On Prospect Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cetera Investment Advisers boosted its holdings in Prospect Capital by 23.9% during the first quarter. Cetera Investment Advisers now owns 316,704 shares of the financial services provider’s stock worth $827,000 after buying an additional 61,182 shares during the last quarter. Spartan Wealth Advisory Services LLC bought a new position in Prospect Capital during the first quarter worth about $50,000. Modera Wealth Management LLC bought a new position in Prospect Capital during the first quarter worth about $69,000. Independent Financial Group LLC bought a new position in Prospect Capital during the first quarter worth about $8,644,000. Finally, 180 Wealth Advisors LLC boosted its holdings in Prospect Capital by 15.7% during the first quarter. 180 Wealth Advisors LLC now owns 400,521 shares of the financial services provider’s stock worth $1,045,000 after buying an additional 54,424 shares during the last quarter. Institutional investors own 9.06% of the company’s stock.

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.