Short Interest in Prospect Capital Co. (NASDAQ:PSEC) Grows By 5.8%

Prospect Capital Co. (NASDAQ:PSEC) saw a large growth in short interest in the month of June. As of June 15th, there was short interest totalling 20,658,500 shares, a growth of 5.8% from the May 15th total of 19,525,600 shares. Approximately 6.8% of the company’s shares are short sold. Based on an average daily trading volume, of 1,490,000 shares, the days-to-cover ratio is presently 13.9 days.

Shares of Prospect Capital stock opened at $6.69 on Friday. Prospect Capital has a 12-month low of $5.70 and a 12-month high of $7.60. The business’s 50 day moving average is $6.53. 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 company has a market cap of $2.46 billion, a PE ratio of 7.60 and a beta of 0.72.

Prospect Capital (NASDAQ:PSEC) last posted its quarterly earnings results on Wednesday, May 8th. The financial services provider reported $0.21 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.21. Prospect Capital had a return on equity of 9.58% and a net margin of 30.82%. The business had revenue of $171.10 million for the quarter, compared to analysts’ expectations of $173.48 million. During the same quarter in the prior year, the business earned $0.19 EPS. The firm’s revenue for the quarter was up 5.1% on a year-over-year basis. Analysts forecast that Prospect Capital will post 0.86 earnings per share for the current fiscal year.

The company also recently announced a monthly dividend, which will be paid on Thursday, July 18th. Shareholders of record on Friday, June 28th will be given a $0.06 dividend. The ex-dividend date is Thursday, June 27th. This represents a $0.72 annualized dividend and a yield of 10.76%. Prospect Capital’s dividend payout ratio is presently 91.14%.

Several equities research analysts have commented on the company. ValuEngine cut Zosano Pharma from a “buy” rating to a “hold” rating in a research note on Wednesday, May 1st. Zacks Investment Research cut ExlService from a “hold” rating to a “sell” rating in a research note on Wednesday. BidaskClub upgraded Zogenix from a “sell” rating to a “hold” rating in a research note on Thursday, May 9th. Finally, National Securities restated a “sell” rating and issued a $4.00 target price on shares of Prospect Capital in a research note on Monday, May 13th. Two equities research analysts have rated the stock with a sell rating and three have issued a hold rating to the stock. The company presently has an average rating of “Hold” and an average price target of $6.00.

In other Prospect Capital news, insider John F. Barry acquired 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, for a total transaction of $873,899.26. Following the transaction, the insider now owns 39,218,728 shares of the company’s stock, valued at $248,646,735.52. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John F. Barry acquired 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 directly owns 38,938,445 shares in the company, valued at approximately $248,427,279.10. The disclosure for this purchase can be found here. Insiders have bought a total of 610,246 shares of company stock valued at $3,882,141 over the last 90 days. Corporate insiders own 10.20% of the company’s stock.

Institutional investors have recently bought and sold shares of the business. California Public Employees Retirement System raised its stake in shares of Prospect Capital by 3.6% during the 4th quarter. California Public Employees Retirement System now owns 731,900 shares of the financial services provider’s stock valued at $4,618,000 after purchasing an additional 25,300 shares during the period. GAM Holding AG raised its stake in shares of Prospect Capital by 4.7% during the 4th quarter. GAM Holding AG now owns 186,140 shares of the financial services provider’s stock valued at $1,208,000 after purchasing an additional 8,422 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Prospect Capital by 273.8% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 146,536 shares of the financial services provider’s stock valued at $924,000 after purchasing an additional 107,334 shares during the period. Raymond James & Associates raised its stake in shares of Prospect Capital by 4.6% during the 4th quarter. Raymond James & Associates now owns 144,508 shares of the financial services provider’s stock valued at $912,000 after purchasing an additional 6,381 shares during the period. Finally, Strategic Wealth Advisors Group LLC raised its stake in shares of Prospect Capital by 10.1% during the 4th quarter. Strategic Wealth Advisors Group LLC now owns 275,600 shares of the financial services provider’s stock valued at $1,862,000 after purchasing an additional 25,190 shares during the period. Hedge funds and other institutional investors own 12.21% of the company’s stock.

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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