Prospect Capital (PSEC) Stock Rating Upgraded by Zacks Investment Research
Prospect Capital (NASDAQ:PSEC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The firm currently has a $7.75 target price on the financial services provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 14.73% from the stock’s current price.
According to Zacks, “Prospect Capital Corporation is a closed-end investment company that lends to and invests in private and microcap public businesses. Prospect Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments. “
Other research analysts also recently issued research reports about the company. ValuEngine upgraded Prospect Capital from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. BidaskClub upgraded Prospect Capital from a “hold” rating to a “buy” rating in a research note on Friday, December 22nd. TheStreet downgraded Prospect Capital from a “b-” rating to a “c+” rating in a research note on Wednesday, September 27th. BMO Capital Markets restated a “hold” rating and issued a $7.00 price objective on shares of Prospect Capital in a research note on Monday, January 8th. Finally, National Securities reduced their price objective on Prospect Capital from $5.00 to $4.00 and set a “sell” rating for the company in a research note on Tuesday, November 14th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Hold” and an average price target of $6.81.
Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings results on Wednesday, November 8th. The financial services provider reported $0.18 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.19 by ($0.01). Prospect Capital had a return on equity of 8.63% and a net margin of 27.00%. The company had revenue of $158.58 million for the quarter, compared to the consensus estimate of $161.00 million. The company’s quarterly revenue was down 11.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.22 EPS. sell-side analysts expect that Prospect Capital will post 0.72 EPS for the current fiscal year.
In other news, insider John F. Barry purchased 993,900 shares of the company’s stock in a transaction dated Friday, December 22nd. The shares were purchased at an average price of $7.21 per share, with a total value of $7,166,019.00. Following the transaction, the insider now directly owns 32,187,564 shares of the company’s stock, valued at $232,072,336.44. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO John F. Barry purchased 170,460 shares of the company’s stock in a transaction dated Thursday, November 30th. The shares were purchased at an average cost of $6.86 per share, for a total transaction of $1,169,355.60. Following the transaction, the chief executive officer now directly owns 27,031,950 shares in the company, valued at $185,439,177. The disclosure for this purchase can be found here. Insiders acquired a total of 4,604,521 shares of company stock valued at $31,784,051 in the last 90 days. Corporate insiders own 7.10% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of Montreal Can purchased a new position in shares of Prospect Capital during the 2nd quarter valued at $32,490,000. Ares Management LLC lifted its holdings in Prospect Capital by 68.0% during the 3rd quarter. Ares Management LLC now owns 377,985 shares of the financial services provider’s stock worth $3,062,000 after purchasing an additional 152,985 shares in the last quarter. Americafirst Capital Management LLC purchased a new stake in Prospect Capital during the 2nd quarter worth about $378,000. Legal & General Group Plc lifted its holdings in Prospect Capital by 13.2% during the 2nd quarter. Legal & General Group Plc now owns 963,173 shares of the financial services provider’s stock worth $7,816,000 after purchasing an additional 112,354 shares in the last quarter. Finally, EQIS Capital Management lifted its holdings in Prospect Capital by 2,333.3% during the 4th quarter. EQIS Capital Management now owns 91,077 shares of the financial services provider’s stock worth $636,000 after purchasing an additional 87,334 shares in the last quarter. 15.60% of the stock is currently owned by hedge funds and other institutional investors.
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About Prospect Capital
Prospect Capital Corporation is a financial services company. The Company primarily lends to and invests in middle market privately held companies. The Company is a closed-end investment company. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
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