Insider Buying: Prospect Capital (NASDAQ:PSEC) CEO Acquires 1,000,000 Shares

Prospect Capital Corporation (NASDAQ:PSEC) CEO John Barry acquired 1,000,000 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were bought at an average cost of $2.25 per share, for a total transaction of $2,250,000.00. Following the transaction, the chief executive officer directly owned 88,146,077 shares of the company’s stock, valued at approximately $198,328,673.25. This trade represents a 1.15% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Prospect Capital Stock Down 2.2%

Shares of NASDAQ PSEC traded down $0.05 during mid-day trading on Wednesday, hitting $2.22. The company had a trading volume of 8,018,805 shares, compared to its average volume of 5,032,641. The company has a market capitalization of $1.11 billion, a PE ratio of -6.00 and a beta of 0.78. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.79 and a quick ratio of 0.79. Prospect Capital Corporation has a 1-year low of $2.11 and a 1-year high of $3.50. The business’s 50-day simple moving average is $2.44 and its 200 day simple moving average is $2.60.

Prospect Capital (NASDAQ:PSEC) last released its earnings results on Thursday, May 7th. The financial services provider reported $0.16 EPS for the quarter, topping 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 firm had revenue of $150.07 million during the quarter, compared to analysts’ expectations of $163.23 million.

Prospect Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be given a dividend of $0.035 per share. The ex-dividend date of this dividend is Thursday, August 27th. This represents a c) dividend on an annualized basis and a dividend yield of 18.9%. Prospect Capital’s payout ratio is currently -113.51%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Catalyst Financial Partners LLC purchased a new position in shares of Prospect Capital in the 4th quarter valued at about $26,000. Bfsg LLC acquired a new position in Prospect Capital in the fourth quarter valued at approximately $27,000. Navalign LLC acquired a new position in Prospect Capital in the third quarter valued at approximately $28,000. Ground Swell Capital LLC purchased a new position in Prospect Capital in the fourth quarter valued at approximately $28,000. Finally, Schonfeld Strategic Advisors LLC purchased a new position in Prospect Capital in the fourth quarter valued at approximately $28,000. 9.06% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages recently weighed in on PSEC. Wall Street Zen raised shares of Prospect Capital from a “hold” rating to a “buy” rating in a report on Sunday. Weiss Ratings upgraded shares of Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, May 29th. Finally, Wells Fargo & Company dropped their price objective on shares of Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a research report on Tuesday, May 12th. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat, 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.