Prospect Capital Corporation (NASDAQ:PSEC – Get Free Report) declared a monthly dividend on Wednesday, November 4th. Investors of record on Wednesday, November 25th will be paid a dividend of $0.0350 per share by the financial services provider on Monday, December 21st. This represents a $0.42 annualized dividend and a yield of 29.7%. The ex-dividend date of this dividend is Wednesday, November 25th.
Prospect Capital has decreased its dividend by an average of 0.1% annually over the last three years. Prospect Capital has a dividend payout ratio of 89.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Research analysts expect Prospect Capital to earn $0.35 per share next year, which means the company may not be able to cover its $0.42 annual dividend with an expected future payout ratio of 120.0%.
Prospect Capital Price Performance
Shares of NASDAQ:PSEC traded down $0.03 during trading on Thursday, hitting $1.42. 5,614,468 shares of the company’s stock were exchanged, compared to its average volume of 5,119,606. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.87 and a quick ratio of 0.87. Prospect Capital has a 52-week low of $1.40 and a 52-week high of $3.12. The business’s 50-day simple moving average is $1.93 and its 200 day simple moving average is $2.35. The company has a market cap of $755.36 million, a price-to-earnings ratio of 28.30 and a beta of 0.84.
Prospect Capital (NASDAQ:PSEC – Get Free Report) last released its earnings results on Wednesday, November 4th. The financial services provider reported $0.15 EPS for the quarter, topping the consensus estimate of $0.10 by $0.05. The firm had revenue of $151.74 million for the quarter, compared to the consensus estimate of $163.14 million. Prospect Capital had a net margin of 19.33% and a return on equity of 12.15%. As a group, equities analysts predict that Prospect Capital will post 0.38 EPS for the current year.
Prospect Capital News Summary
Here are the key news stories impacting Prospect Capital this week:
- Positive Sentiment: PSEC reported $0.15 per share, above the $0.10 analyst consensus, and announced a $200 million common-share repurchase program. Repurchases could support per-share value, though the announcement does not establish how much the company will buy back. Prospect Capital results and repurchase program
- Neutral Sentiment: Call-option trading rose to 2,565 contracts, 353% above its average volume. This suggests increased speculative interest, but options activity alone does not reliably predict the stock’s direction.
- Negative Sentiment: Quarterly revenue of $151.7 million fell short of the $163.1 million consensus. Net investment income was $76.4 million, down from $79.4 million a year earlier, while NII per share declined to $0.15 from $0.17. The earnings beat therefore came alongside weaker underlying income. Prospect Capital earnings report
- Negative Sentiment: An Associated Press earnings snapshot reported a $21 million net loss, highlighting that the per-share earnings beat does not mean the company was profitable on a net basis. Fiscal Q1 earnings snapshot
- Negative Sentiment: A Seeking Alpha article raised concerns about PSEC’s high stated yield being supported by a shrinking portfolio, adding to questions about the sustainability of income and distributions. Analysis of Prospect Capital’s yield and portfolio
Prospect Capital Company Profile
Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that provides financing and investment capital to middle-market companies. The company primarily invests in privately held businesses through first-lien and second-lien loans, mezzanine debt, and other debt securities, while also making equity and equity-related investments in selected companies.
Prospect Capital invests across a range of industries and has additional exposure to areas such as real estate, structured credit, and financial services.
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