Insider Buying: Prospect Capital (NASDAQ:PSEC) CEO Purchases $1,004,560.00 in Stock

Prospect Capital Corporation (NASDAQ:PSEC) CEO John Barry bought 433,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average price of $2.32 per share, for a total transaction of $1,004,560.00. Following the completion of the acquisition, the chief executive officer owned 87,122,376 shares in the company, valued at $202,123,912.32. This represents a 0.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Prospect Capital Price Performance

Shares of PSEC opened at $2.41 on Friday. Prospect Capital Corporation has a 12-month low of $2.11 and a 12-month high of $3.50. The business’s fifty day moving average is $2.54 and its 200 day moving average is $2.66. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59. The stock has a market cap of $1.21 billion, a P/E ratio of -6.51 and a beta of 0.82.

Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.05. The company had revenue of $150.07 million for the quarter, compared to analysts’ expectations of $163.23 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.

Prospect Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be given a $0.035 dividend. This represents a c) dividend on an annualized basis and a yield of 17.4%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital’s dividend payout ratio is presently -113.51%.

Institutional Investors Weigh In On Prospect Capital

Several large investors have recently made changes to their positions in the business. Raymond James Financial Inc. increased its position in shares of Prospect Capital by 0.5% during the 2nd quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider’s stock valued at $2,685,000 after purchasing an additional 3,880 shares during the last quarter. Private Advisor Group LLC increased its position in shares of Prospect Capital by 0.4% during the 1st quarter. Private Advisor Group LLC now owns 1,711,638 shares of the financial services provider’s stock valued at $4,467,000 after purchasing an additional 6,262 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S increased its position in shares of Prospect Capital by 1.3% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 520,592 shares of the financial services provider’s stock valued at $1,655,000 after purchasing an additional 6,516 shares during the last quarter. Significant Wealth Partners LLC increased its position in shares of Prospect Capital by 59.1% during the 3rd quarter. Significant Wealth Partners LLC now owns 17,947 shares of the financial services provider’s stock valued at $49,000 after purchasing an additional 6,664 shares during the last quarter. Finally, ProShare Advisors LLC increased its position in shares of Prospect Capital by 10.8% during the 3rd quarter. ProShare Advisors LLC now owns 81,823 shares of the financial services provider’s stock valued at $225,000 after purchasing an additional 7,994 shares during the last quarter. 9.06% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PSEC has been the subject of a number of analyst reports. Weiss Ratings raised Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday. Wall Street Zen raised Prospect Capital from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, Wells Fargo & Company lowered their price target on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating for the company in a research report on Tuesday, May 12th. Two equities research analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the stock currently has an average rating of “Sell” and an average target price of $2.00.

About Prospect Capital

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.