Prospect Capital (NASDAQ:PSEC) Rating Increased to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Prospect Capital (NASDAQ:PSEC) from a sell rating to a hold rating in a research report sent to investors on Thursday morning, Zacks.com reports.

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According to Zacks, “Prospect Capital Corporation is a closed-end investment company that lends to and invests in private and microcap public businesses. Prospect Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments. “

PSEC has been the topic of a number of other research reports. TheStreet downgraded Prospect Capital from a b- rating to a c rating in a research report on Friday, September 13th. BidaskClub downgraded Prospect Capital from a hold rating to a sell rating in a research report on Saturday, November 2nd. Finally, ValuEngine downgraded Prospect Capital from a hold rating to a sell rating in a research report on Tuesday, November 5th. Four equities research analysts have rated the stock with a sell rating and one has given a hold rating to the company’s stock. Prospect Capital currently has a consensus rating of Sell and a consensus target price of $5.00.

Shares of NASDAQ:PSEC traded up $0.01 during trading on Thursday, hitting $6.50. 1,438,700 shares of the company were exchanged, compared to its average volume of 1,592,802. The company has a market cap of $2.38 billion, a PE ratio of 7.65 and a beta of 0.76. The stock has a 50 day moving average of $6.48 and a 200 day moving average of $6.56. Prospect Capital has a 52-week low of $5.70 and a 52-week high of $6.98. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.29 and a quick ratio of 1.29.

Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Wednesday, November 6th. The financial services provider reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.14). The company had revenue of $161.88 million for the quarter, compared to analysts’ expectations of $162.98 million. Prospect Capital had a return on equity of 9.05% and a net margin of 11.49%. During the same quarter in the prior year, the company earned $0.23 EPS. Sell-side analysts forecast that Prospect Capital will post 0.72 EPS for the current fiscal year.

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, December 19th. Investors of record on Friday, November 29th will be given a $0.06 dividend. The ex-dividend date of this dividend is Wednesday, November 27th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.08%. Prospect Capital’s dividend payout ratio (DPR) is presently 84.71%.

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

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Phocas Financial Corp. purchased a new stake in Prospect Capital during the second quarter valued at about $2,055,000. Point72 Asset Management L.P. bought a new position in shares of Prospect Capital during the second quarter valued at about $36,000. Steward Partners Investment Advisory LLC bought a new position in shares of Prospect Capital during the second quarter valued at about $63,000. First National Bank of Omaha bought a new position in shares of Prospect Capital during the third quarter valued at about $66,000. Finally, Mycio Wealth Partners LLC bought a new position in shares of Prospect Capital during the second quarter valued at about $67,000. Institutional investors and hedge funds own 12.34% 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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