Insider Buying: Prospect Capital (NASDAQ:PSEC) COO Acquires $2,752,976.00 in Stock

Prospect Capital Corporation (NASDAQ:PSEC) COO M Grier Eliasek purchased 942,800 shares of the business’s stock in a transaction on Wednesday, February 11th. The shares were bought at an average price of $2.92 per share, for a total transaction of $2,752,976.00. Following the purchase, the chief operating officer directly owned 3,443,930 shares in the company, valued at $10,056,275.60. This represents a 37.69% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Prospect Capital Stock Up 5.5%

Prospect Capital stock opened at $3.05 on Monday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.74 and a current ratio of 0.74. Prospect Capital Corporation has a fifty-two week low of $2.45 and a fifty-two week high of $4.47. The company has a market cap of $1.47 billion, a PE ratio of -3.77 and a beta of 0.89. The business’s 50-day simple moving average is $2.70 and its two-hundred day simple moving average is $2.74.

Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings results on Monday, February 9th. The financial services provider reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.09. The company had revenue of $176.00 million for the quarter, compared to the consensus estimate of $156.34 million. Prospect Capital had a negative net margin of 39.56% and a positive return on equity of 11.91%.

Prospect Capital Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Tuesday, April 28th will be paid a dividend of $0.045 per share. The ex-dividend date of this dividend is Tuesday, April 28th. This represents a c) dividend on an annualized basis and a dividend yield of 17.7%. Prospect Capital’s dividend payout ratio (DPR) is presently -66.67%.

Wall Street Analyst Weigh In

Several analysts recently commented on PSEC shares. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a research report on Thursday, January 22nd. Wall Street Zen lowered shares of Prospect Capital from a “buy” rating to a “hold” rating in a research note on Saturday. Two analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the stock currently has an average rating of “Sell” and a consensus price target of $2.50.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its holdings in Prospect Capital by 29.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 393,034 shares of the financial services provider’s stock worth $1,611,000 after buying an additional 89,139 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of Prospect Capital by 140.0% in the first quarter. Empowered Funds LLC now owns 88,397 shares of the financial services provider’s stock worth $362,000 after acquiring an additional 51,562 shares during the last quarter. Blair William & Co. IL increased its position in shares of Prospect Capital by 17.3% during the second quarter. Blair William & Co. IL now owns 53,473 shares of the financial services provider’s stock worth $170,000 after purchasing an additional 7,873 shares in the last quarter. IFP Advisors Inc increased its position in shares of Prospect Capital by 2,609.2% during the second quarter. IFP Advisors Inc now owns 20,319 shares of the financial services provider’s stock worth $65,000 after purchasing an additional 19,569 shares in the last quarter. Finally, CWM LLC raised its stake in Prospect Capital by 2,528.4% in the 2nd quarter. CWM LLC now owns 18,241 shares of the financial services provider’s stock valued at $58,000 after purchasing an additional 17,547 shares during the last quarter. Institutional investors and hedge funds own 9.06% of the company’s stock.

Prospect Capital Company Profile

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.