Analysts Set Prospect Capital Co. (NASDAQ:PSEC) Price Target at $5.00

Shares of Prospect Capital Co. (NASDAQ:PSEC) have been assigned an average recommendation of “Sell” from the six research firms that are currently covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation and two have assigned a hold recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $5.00.

PSEC has been the subject of several recent research reports. BidaskClub lowered Prospect Capital from a “hold” rating to a “sell” rating in a report on Thursday, March 7th. ValuEngine lowered Prospect Capital from a “hold” rating to a “sell” rating in a report on Monday, April 1st. National Securities reiterated a “sell” rating and set a $4.00 price objective on shares of Prospect Capital in a report on Monday, May 13th. Finally, Zacks Investment Research lowered Prospect Capital from a “hold” rating to a “sell” rating in a report on Wednesday, April 10th.

Shares of NASDAQ:PSEC traded up $0.07 during midday trading on Friday, hitting $6.53. 1,478,426 shares of the stock were exchanged, compared to its average volume of 1,713,928. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 0.68. Prospect Capital has a 52-week low of $5.70 and a 52-week high of $7.60. The stock’s fifty day moving average is $6.58. The company has a market cap of $2.40 billion, a P/E ratio of 8.27 and a beta of 0.73.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings data on Wednesday, May 8th. The financial services provider reported $0.21 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate 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 during the quarter, compared to analyst estimates of $173.48 million. During the same period last year, the company earned $0.19 earnings per share. Prospect Capital’s quarterly revenue was up 5.1% compared to the same quarter last year. On average, analysts anticipate that Prospect Capital will post 0.86 EPS for the current fiscal year.

The business also recently announced a monthly dividend, which will be paid on Thursday, July 18th. Shareholders of record on Friday, June 28th will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Thursday, June 27th. This represents a $0.72 annualized dividend and a yield of 11.03%. Prospect Capital’s dividend payout ratio (DPR) is currently 91.14%.

In related news, CEO John F. Barry bought 63,496 shares of the business’s stock in a transaction on Tuesday, June 4th. The shares were bought at an average cost of $6.29 per share, for a total transaction of $399,389.84. Following the completion of the acquisition, the chief executive officer now directly owns 38,364,480 shares in the company, valued at $241,312,579.20. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO John F. Barry bought 408,911 shares of the business’s stock in a transaction on Thursday, June 13th. The shares were bought at an average price of $6.38 per share, for a total transaction of $2,608,852.18. Following the completion of the acquisition, the chief executive officer now owns 38,938,445 shares of the company’s stock, valued at $248,427,279.10. The disclosure for this purchase can be found here. Over the last 90 days, insiders have acquired 610,246 shares of company stock worth $3,882,141. Corporate insiders own 10.20% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of PSEC. NumerixS Investment Technologies Inc bought a new position in Prospect Capital during the fourth quarter valued at about $27,000. Flagship Harbor Advisors LLC increased its stake in shares of Prospect Capital by 66.2% in the first quarter. Flagship Harbor Advisors LLC now owns 5,752 shares of the financial services provider’s stock worth $37,000 after purchasing an additional 2,291 shares during the period. HCR Wealth Advisors bought a new position in shares of Prospect Capital in the first quarter worth about $41,000. Nikulski Financial Inc. bought a new position in shares of Prospect Capital in the first quarter worth about $49,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Prospect Capital in the first quarter worth about $63,000. 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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