BidaskClub upgraded shares of Prospect Capital (NASDAQ:PSEC) from a sell rating to a hold rating in a report released on Thursday morning.
PSEC has been the topic of a number of other research reports. Zacks Investment Research upgraded Prospect Capital from a hold rating to a strong-buy rating and set a $8.00 target price on the stock in a report on Thursday, November 15th. National Securities restated a sell rating and issued a $4.00 price objective on shares of Prospect Capital in a report on Monday, November 12th. Finally, ValuEngine upgraded Prospect Capital from a sell rating to a hold rating in a report on Thursday, December 27th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and one has issued a strong buy rating to the company. Prospect Capital currently has an average rating of Hold and an average target price of $6.00.
Shares of PSEC traded up $0.05 during trading hours on Thursday, reaching $6.74. The company’s stock had a trading volume of 1,092,097 shares, compared to its average volume of 2,384,481. The company has a market capitalization of $2.45 billion, a price-to-earnings ratio of 8.53 and a beta of 0.64. Prospect Capital has a 1-year low of $5.70 and a 1-year high of $7.60. The company has a debt-to-equity ratio of 0.77, a current ratio of 2.37 and a quick ratio of 2.37.
Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Tuesday, November 6th. The financial services provider reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.02. The company had revenue of $159.40 million for the quarter, compared to the consensus estimate of $166.71 million. Prospect Capital had a return on equity of 9.11% and a net margin of 54.69%. The firm’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.18 EPS. Equities research analysts expect that Prospect Capital will post 0.95 earnings per share for the current fiscal year.
The company also recently disclosed a monthly dividend, which will be paid on Thursday, January 24th. Investors of record on Wednesday, January 2nd will be issued a $0.06 dividend. The ex-dividend date is Monday, December 31st. This represents a $0.72 dividend on an annualized basis and a yield of 10.68%. Prospect Capital’s dividend payout ratio is currently 91.14%.
In related news, insider John F. Barry purchased 304,792 shares of the stock in a transaction on Monday, December 24th. The shares were bought at an average price of $5.82 per share, for a total transaction of $1,773,889.44. Following the completion of the acquisition, the insider now directly owns 37,593,070 shares in the company, valued at approximately $218,791,667.40. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider John F. Barry purchased 299,707 shares of the stock in a transaction on Monday, December 31st. The shares were bought at an average price of $6.31 per share, for a total transaction of $1,891,151.17. The disclosure for this purchase can be found here. Insiders purchased 1,963,706 shares of company stock worth $11,775,947 in the last 90 days. 10.20% of the stock is currently owned by corporate insiders.
Hedge funds have recently made changes to their positions in the business. American Financial Network Advisory Services LLC acquired a new position in Prospect Capital during the third quarter valued at approximately $101,000. Rhumbline Advisers acquired a new position in Prospect Capital during the third quarter valued at approximately $103,000. HRT Financial LLC acquired a new position in Prospect Capital during the third quarter valued at approximately $106,000. Reynders McVeigh Capital Management LLC acquired a new position in Prospect Capital during the third quarter valued at approximately $137,000. Finally, Stephens Inc. AR acquired a new position in Prospect Capital during the second quarter valued at approximately $150,000. Institutional investors own 14.18% of the company’s stock.
About Prospect Capital
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, buyouts, recapitalizations, turnaround, growth capital, development, subordinated debt tranches of collateralized loan obligations, cash flow term loans, and bridge transactions.
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