Prospect Capital (NASDAQ:PSEC) Sets New 1-Year Low – Should You Sell?

Shares of Prospect Capital Corporation (NASDAQ:PSEC) reached a new 52-week low during mid-day trading on Monday. The company traded as low as $1.58 and last traded at $1.5750, with a volume of 559,745 shares changing hands. The stock had previously closed at $1.60.

Analysts Set New Price Targets

A number of equities analysts have recently commented on PSEC shares. Zacks Research upgraded Prospect Capital to a “hold” rating in a report on Monday, October 5th. Wall Street Zen cut Prospect Capital from a “buy” rating to a “hold” rating in a report on Saturday, August 22nd. Finally, Weiss Ratings downgraded shares of Prospect Capital from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, August 26th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Sell” and an average price target of $2.00.

Prospect Capital Price Performance

The company’s fifty day moving average is $2.12 and its two-hundred day moving average is $2.29. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.87 and a current ratio of 0.87. The firm has a market cap of $824.75 million, a price-to-earnings ratio of 30.90 and a beta of 0.82.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings results on Thursday, August 20th. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.04. Prospect Capital had a return on equity of 12.15% and a net margin of 19.33%. The firm had revenue of $155.76 million during the quarter, compared to the consensus estimate of $149.80 million. Equities research analysts forecast that Prospect Capital Corporation will post 0.38 EPS for the current year.

Prospect Capital Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Wednesday, November 18th. Stockholders of record on Wednesday, October 28th will be given a $0.0350 dividend. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $0.42 annualized dividend and a dividend yield of 27.2%. Prospect Capital’s dividend payout ratio is presently 840.00%.

Insider Buying and Selling at Prospect Capital

In related news, CEO John Barry. III bought 1,217,105 shares of the stock in a transaction dated Friday, September 4th. The stock was acquired at an average price of $2.24 per share, for a total transaction of $2,726,315.20. Following the completion of the purchase, the chief executive officer owned 90,479,988 shares in the company, valued at $202,675,173.12. This represents a 1.36% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 25.94% of the stock is owned by insiders.

Hedge Funds Weigh In On Prospect Capital

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. WINTON GROUP Ltd acquired a new stake in Prospect Capital in the second quarter valued at approximately $35,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Prospect Capital by 55.5% during the second quarter. Caitong International Asset Management Co. Ltd now owns 16,970 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 6,056 shares in the last quarter. ARS Wealth Advisors Group LLC acquired a new position in shares of Prospect Capital during the third quarter worth $36,000. GTS Securities LLC acquired a new position in shares of Prospect Capital during the second quarter worth $40,000. Finally, Spartan Wealth Advisory Services LLC purchased a new position in shares of Prospect Capital in the first quarter valued at $50,000. 9.06% of the stock is owned by institutional investors and hedge funds.

Prospect Capital Company Profile

Prospect Capital Corporation is a business development company that provides financing to privately held, middle-market companies. The company primarily invests in first-lien and second-lien loans, subordinated debt, and other debt and equity securities. Its investments are designed to support acquisitions, recapitalizations, growth initiatives, refinancings, and other corporate purposes.

Through its investment platform, Prospect Capital also participates in specialized finance and structured investment activities, including investments in real estate-related assets and other operating businesses.