Zacks Investment Research Downgrades Prospect Capital (PSEC) to Hold

Prospect Capital (NASDAQ:PSEC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

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. “

Several other research analysts also recently issued reports on the stock. BidaskClub downgraded shares of Prospect Capital from a “hold” rating to a “sell” rating in a report on Friday. BMO Capital Markets reiterated a “hold” rating and set a $7.00 price target on shares of Prospect Capital in a report on Monday, January 8th. ValuEngine upgraded shares of Prospect Capital from a “buy” rating to a “strong-buy” rating in a report on Friday, December 22nd. National Securities lowered their price target on shares of Prospect Capital from $5.00 to $4.00 and set a “sell” rating for the company in a report on Tuesday, November 14th. Finally, TheStreet downgraded shares of Prospect Capital from a “b-” rating to a “c+” rating in a report on Wednesday, September 27th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and one has assigned a strong buy rating to the stock. Prospect Capital has a consensus rating of “Hold” and an average price target of $6.81.

Prospect Capital (NASDAQ:PSEC) opened at $6.85 on Friday. Prospect Capital has a 1 year low of $5.51 and a 1 year high of $9.58. The company has a market cap of $2,450.68, a P/E ratio of 13.70 and a beta of 0.56. The company has a debt-to-equity ratio of 0.78, a quick ratio of 2.63 and a current ratio of 2.63.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings data on Wednesday, November 8th. The financial services provider reported $0.18 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.01). The firm had revenue of $158.58 million for the quarter, compared to analyst estimates of $161.00 million. Prospect Capital had a net margin of 27.00% and a return on equity of 8.63%. The firm’s revenue for the quarter was down 11.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.22 earnings per share. equities research analysts anticipate that Prospect Capital will post 0.72 EPS for the current year.

In other Prospect Capital news, COO M Grier Eliasek acquired 10,000 shares of Prospect Capital stock in a transaction that occurred on Monday, November 27th. The shares were bought at an average price of $6.89 per share, with a total value of $68,900.00. Following the completion of the purchase, the chief operating officer now directly owns 1,003,990 shares in the company, valued at approximately $6,917,491.10. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider John F. Barry acquired 11,445 shares of Prospect Capital stock in a transaction that occurred on Monday, November 27th. The stock was acquired at an average cost of $6.80 per share, for a total transaction of $77,826.00. Following the purchase, the insider now owns 26,720,116 shares of the company’s stock, valued at $181,696,788.80. The disclosure for this purchase can be found here. In the last three months, insiders purchased 4,604,521 shares of company stock worth $31,784,051. 7.10% of the stock is currently owned by insiders.

Institutional investors have recently modified their holdings of the stock. Americafirst Capital Management LLC bought a new stake in shares of Prospect Capital in the second quarter worth $378,000. Arrowstreet Capital Limited Partnership bought a new stake in shares of Prospect Capital in the second quarter worth $7,697,000. California Public Employees Retirement System grew its stake in shares of Prospect Capital by 2.7% in the second quarter. California Public Employees Retirement System now owns 767,000 shares of the financial services provider’s stock worth $6,228,000 after purchasing an additional 20,100 shares during the last quarter. Janney Montgomery Scott LLC grew its stake in shares of Prospect Capital by 86.9% in the third quarter. Janney Montgomery Scott LLC now owns 87,689 shares of the financial services provider’s stock worth $589,000 after purchasing an additional 40,765 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd bought a new stake in shares of Prospect Capital in the third quarter worth $767,000. 15.60% of the stock is currently owned by 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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