Prospect Capital Sees Unusually Large Options Volume (PSEC)

Prospect Capital Co. (NASDAQ:PSEC) saw some unusual options trading activity on Friday. Traders bought 15,837 call options on the company. This is an increase of approximately 2,375% compared to the typical volume of 640 call options.

Prospect Capital (NASDAQ:PSEC) opened at $6.39 on Monday. The company has a current ratio of 2.63, a quick ratio of 2.63 and a debt-to-equity ratio of 0.78. Prospect Capital has a fifty-two week low of $5.51 and a fifty-two week high of $9.58. The stock has a market cap of $2,300.00, a price-to-earnings ratio of 12.53 and a beta of 0.48.

Prospect Capital (NASDAQ:PSEC) last issued its 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 business had revenue of $158.58 million for the quarter, compared to analysts’ expectations of $161.00 million. During the same period last year, the business earned $0.22 EPS. The company’s revenue for the quarter was down 11.8% on a year-over-year basis. analysts forecast that Prospect Capital will post 0.72 EPS for the current year.

The firm also recently announced a monthly dividend, which will be paid on Thursday, February 15th. Investors of record on Wednesday, January 31st will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Tuesday, January 30th. This represents a $0.72 annualized dividend and a dividend yield of 11.27%. Prospect Capital’s dividend payout ratio (DPR) is presently 141.18%.

PSEC has been the subject of a number of research analyst reports. ValuEngine raised shares of Prospect Capital from a “buy” rating to a “strong-buy” rating in a report on Friday, December 22nd. BidaskClub raised shares of Prospect Capital from a “hold” rating to a “buy” rating in a report on Friday, December 22nd. Zacks Investment Research raised shares of Prospect Capital from a “hold” rating to a “buy” rating and set a $7.75 price target for the company in a report on Wednesday, January 17th. BMO Capital Markets decreased their price target on shares of Prospect Capital from $7.00 to $6.00 and set a “market perform” rating for the company in a report on Friday, November 10th. Finally, National Securities decreased their price target on shares of Prospect Capital from $6.00 to $5.00 and set a “sell” rating for the company in a report on Thursday, October 12th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. Prospect Capital currently has an average rating of “Hold” and an average price target of $6.81.

In related news, COO M Grier Eliasek purchased 10,000 shares of the firm’s stock in a transaction on Friday, December 22nd. The stock was acquired at an average price of $7.19 per share, with a total value of $71,900.00. Following the completion of the acquisition, the chief operating officer now owns 1,202,196 shares in the company, valued at approximately $8,643,789.24. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider John F. Barry purchased 993,900 shares of the firm’s stock in a transaction on Friday, December 22nd. The stock was bought at an average cost of $7.21 per share, with a total value of $7,166,019.00. Following the acquisition, the insider now owns 32,187,564 shares of the company’s stock, valued at approximately $232,072,336.44. The disclosure for this purchase can be found here. Insiders have purchased 4,604,521 shares of company stock valued at $31,784,051 in the last three months. 7.10% of the stock is currently owned by corporate insiders.

Several institutional investors have recently modified their holdings of PSEC. Wesbanco Bank Inc. purchased a new position in shares of Prospect Capital during the fourth quarter worth $107,000. Trexquant Investment LP purchased a new position in shares of Prospect Capital during the third quarter worth $108,000. Kovack Advisors Inc. purchased a new position in shares of Prospect Capital during the fourth quarter worth $111,000. Jane Street Group LLC purchased a new position in shares of Prospect Capital during the third quarter worth $127,000. Finally, Advisory Services Network LLC raised its holdings in shares of Prospect Capital by 0.6% during the second quarter. Advisory Services Network LLC now owns 17,741 shares of the financial services provider’s stock worth $144,000 after purchasing an additional 105 shares during the last quarter. 14.56% of the stock is owned by hedge funds and other institutional investors.

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Prospect Capital Company Profile

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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