Insider Buying: Prospect Capital Co. (NASDAQ:PSEC) CEO Purchases 2,000,000 Shares of Stock

Prospect Capital Co. (NASDAQ:PSEC) CEO John F. Barry purchased 2,000,000 shares of the firm’s stock in a transaction on Tuesday, December 24th. The stock was bought at an average price of $4.29 per share, for a total transaction of $8,580,000.00. Following the purchase, the chief executive officer now owns 79,477,549 shares in the company, valued at approximately $340,958,685.21. This represents a 2.58 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Prospect Capital Price Performance

PSEC stock opened at $4.26 on Friday. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 0.65. Prospect Capital Co. has a 12 month low of $4.09 and a 12 month high of $6.26. The stock has a market cap of $1.86 billion, a PE ratio of -16.38 and a beta of 0.97. The company has a 50-day moving average price of $4.69 and a 200 day moving average price of $5.11.

Prospect Capital (NASDAQ:PSEC) last released its earnings results on Friday, November 8th. The financial services provider reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.04. Prospect Capital had a positive return on equity of 12.19% and a negative net margin of 2.23%. The firm had revenue of $196.31 million for the quarter.

Prospect Capital Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Wednesday, February 19th. Stockholders of record on Wednesday, January 29th will be given a dividend of $0.045 per share. The ex-dividend date of this dividend is Wednesday, January 29th. This represents a $0.54 annualized dividend and a dividend yield of 12.68%. Prospect Capital’s dividend payout ratio (DPR) is -207.69%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on PSEC. StockNews.com raised shares of Prospect Capital from a “sell” rating to a “hold” rating in a report on Friday, December 6th. Wells Fargo & Company dropped their target price on Prospect Capital from $5.00 to $4.50 and set an “underweight” rating for the company in a report on Friday, August 30th.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Rothschild Investment LLC purchased a new stake in Prospect Capital in the 2nd quarter valued at about $27,000. MWA Asset Management bought a new stake in shares of Prospect Capital during the third quarter valued at approximately $53,000. Global Assets Advisory LLC purchased a new stake in shares of Prospect Capital in the third quarter valued at approximately $64,000. Family Wealth Partners LLC bought a new position in Prospect Capital in the third quarter worth approximately $74,000. Finally, Captrust Financial Advisors increased its holdings in Prospect Capital by 34.9% during the 3rd quarter. Captrust Financial Advisors now owns 14,247 shares of the financial services provider’s stock worth $76,000 after purchasing an additional 3,686 shares during the period. 9.06% of the stock is currently owned by institutional investors.

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.