Prospect Capital (NASDAQ:PSEC) Downgraded by ValuEngine

ValuEngine downgraded shares of Prospect Capital (NASDAQ:PSEC) from a hold rating to a sell rating in a research report report published on Tuesday morning, ValuEngine reports.

A number of other equities analysts also recently issued reports on the company. TheStreet downgraded Prospect Capital from a b- rating to a c rating in a research note on Friday, September 13th. BidaskClub downgraded Prospect Capital from a hold rating to a sell rating in a research note on Saturday, November 2nd. Finally, Zacks Investment Research upgraded Prospect Capital from a sell rating to a hold rating in a research note on Wednesday, October 30th. Four analysts have rated the stock with a sell rating and one has given a hold rating to the company’s stock. The stock currently has a consensus rating of Sell and a consensus price target of $6.00.

Shares of NASDAQ:PSEC traded up $0.12 during trading on Tuesday, hitting $6.49. The stock had a trading volume of 1,996,200 shares, compared to its average volume of 1,596,908. The company has a market capitalization of $2.35 billion, a PE ratio of 7.64 and a beta of 0.76. Prospect Capital has a 12 month low of $5.70 and a 12 month high of $7.06. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.72. The firm’s fifty day moving average is $6.52 and its 200 day moving average is $6.58.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings results on Wednesday, November 6th. The financial services provider reported $0.05 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.14). The firm had revenue of $161.88 million during the quarter, compared to analysts’ expectations of $162.98 million. Prospect Capital had a return on equity of 9.36% and a net margin of 20.53%. During the same quarter last year, the business earned $0.23 earnings per share. Equities research analysts expect that Prospect Capital will post 0.74 EPS for the current fiscal year.

The company also recently declared a monthly dividend, which will be paid on Thursday, December 19th. Stockholders of record on Friday, November 29th will be paid a $0.06 dividend. The ex-dividend date is Wednesday, November 27th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.09%. Prospect Capital’s dividend payout ratio (DPR) is currently 84.71%.

In related news, CEO John F. Barry bought 139,761 shares of the stock in a transaction that occurred on Thursday, August 29th. The shares were bought at an average cost of $6.40 per share, for a total transaction of $894,470.40. Following the completion of the transaction, the chief executive officer now owns 39,460,914 shares of the company’s stock, valued at $252,549,849.60. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO John F. Barry bought 237,857 shares of the stock in a transaction that occurred on Tuesday, September 3rd. The shares were bought at an average price of $6.34 per share, for a total transaction of $1,508,013.38. Following the completion of the transaction, the chief executive officer now directly owns 39,906,051 shares of the company’s stock, valued at approximately $253,004,363.34. The disclosure for this purchase can be found here. Company insiders own 11.30% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cetera Advisor Networks LLC lifted its position in Prospect Capital by 2.6% during the second quarter. Cetera Advisor Networks LLC now owns 62,559 shares of the financial services provider’s stock valued at $416,000 after purchasing an additional 1,600 shares in the last quarter. KG&L Capital Management LLC lifted its position in Prospect Capital by 16.4% during the third quarter. KG&L Capital Management LLC now owns 13,664 shares of the financial services provider’s stock valued at $90,000 after purchasing an additional 1,929 shares in the last quarter. Prospera Financial Services Inc lifted its position in Prospect Capital by 6.7% during the third quarter. Prospera Financial Services Inc now owns 33,424 shares of the financial services provider’s stock valued at $220,000 after purchasing an additional 2,085 shares in the last quarter. Roman Butler Fullerton & Co. lifted its position in Prospect Capital by 7.0% during the third quarter. Roman Butler Fullerton & Co. now owns 42,530 shares of the financial services provider’s stock valued at $280,000 after purchasing an additional 2,780 shares in the last quarter. Finally, Phocas Financial Corp. purchased a new position in Prospect Capital during the second quarter valued at $2,055,000. Institutional investors own 12.35% 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, 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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