Prospect Capital Co. (NASDAQ:PSEC) Receives Average Rating of “Sell” from Brokerages

Prospect Capital Co. (NASDAQ:PSEC) has been assigned an average rating of “Sell” from the six brokerages that are covering the stock, Marketbeat reports. Three research analysts have rated the stock with a sell rating and two have issued a hold rating on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $5.00.

Several brokerages have recently issued reports on PSEC. Zacks Investment Research downgraded shares of Prospect Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, April 10th. National Securities reissued a “sell” rating and set a $4.00 price objective on shares of Prospect Capital in a research report on Monday, May 13th. BidaskClub raised shares of Prospect Capital from a “sell” rating to a “hold” rating in a research report on Thursday, May 9th. Finally, ValuEngine raised shares of Prospect Capital from a “sell” rating to a “hold” rating in a research report on Wednesday, May 1st.

PSEC opened at $6.57 on Friday. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $2.40 billion, a price-to-earnings ratio of 8.32 and a beta of 0.73. Prospect Capital has a twelve month low of $5.70 and a twelve month high of $7.60.

Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Wednesday, May 8th. The financial services provider reported $0.21 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.21. The company had revenue of $171.10 million for the quarter, compared to analyst estimates of $173.48 million. Prospect Capital had a net margin of 30.82% and a return on equity of 9.58%. The business’s revenue for the quarter was up 5.1% compared to the same quarter last year. During the same period last year, the business posted $0.19 earnings per share. Research analysts predict that Prospect Capital will post 0.86 earnings per share for the current year.

The firm also recently announced a monthly dividend, which will be paid on Thursday, July 18th. Investors of record on Friday, June 28th will be given a $0.06 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 10.96%. The ex-dividend date is Thursday, June 27th. Prospect Capital’s dividend payout ratio (DPR) is currently 91.14%.

In other Prospect Capital news, CEO John F. Barry bought 408,911 shares of the firm’s stock in a transaction that occurred on Thursday, June 13th. The stock was acquired at an average price of $6.38 per share, with a total value of $2,608,852.18. Following the completion of the transaction, the chief executive officer now owns 38,938,445 shares in the company, valued at $248,427,279.10. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider John F. Barry bought 137,839 shares of the firm’s stock in a transaction that occurred on Monday, June 17th. The stock was acquired at an average cost of $6.34 per share, with a total value of $873,899.26. Following the transaction, the insider now owns 39,218,728 shares of the company’s stock, valued at approximately $248,646,735.52. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 610,246 shares of company stock valued at $3,882,141. 10.20% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Alpha Omega Wealth Management LLC lifted its stake in Prospect Capital by 2.1% in the first quarter. Alpha Omega Wealth Management LLC now owns 73,077 shares of the financial services provider’s stock valued at $476,000 after acquiring an additional 1,523 shares during the last quarter. Stratos Wealth Partners LTD. lifted its stake in Prospect Capital by 10.3% in the first quarter. Stratos Wealth Partners LTD. now owns 21,215 shares of the financial services provider’s stock valued at $138,000 after acquiring an additional 1,981 shares during the last quarter. Wesbanco Bank Inc. lifted its stake in Prospect Capital by 12.6% in the first quarter. Wesbanco Bank Inc. now owns 17,917 shares of the financial services provider’s stock valued at $117,000 after acquiring an additional 2,000 shares during the last quarter. AE Wealth Management LLC lifted its stake in shares of Prospect Capital by 20.6% during the 4th quarter. AE Wealth Management LLC now owns 12,812 shares of the financial services provider’s stock worth $81,000 after buying an additional 2,189 shares during the last quarter. Finally, Alpha Windward LLC lifted its stake in shares of Prospect Capital by 3.2% during the 1st quarter. Alpha Windward LLC now owns 72,540 shares of the financial services provider’s stock worth $473,000 after buying an additional 2,280 shares during the last quarter. 12.21% of the stock is owned by institutional investors and hedge funds.

Prospect Capital Company Profile

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.

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