Prospect Capital Co. Declares Monthly Dividend of $0.06 (NASDAQ:PSEC)

Prospect Capital Co. (NASDAQ:PSEC) announced a monthly dividend on Wednesday, May 8th, Zacks reports. Shareholders of record on Wednesday, May 29th will be paid a dividend of 0.06 per share by the financial services provider on Tuesday, June 18th. This represents a $0.72 dividend on an annualized basis and a yield of 13.19%. The ex-dividend date of this dividend is Wednesday, May 29th.

Prospect Capital has raised its dividend payment by an average of 13.6% annually over the last three years. Prospect Capital has a dividend payout ratio of 98.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Research analysts expect Prospect Capital to earn $0.72 per share next year, which means the company may not be able to cover its $0.72 annual dividend with an expected future payout ratio of 100.0%.

Prospect Capital Stock Performance

NASDAQ:PSEC traded up $0.01 during midday trading on Friday, hitting $5.46. The company’s stock had a trading volume of 1,515,443 shares, compared to its average volume of 2,040,125. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.07 and a quick ratio of 1.07. Prospect Capital has a fifty-two week low of $5.03 and a fifty-two week high of $6.69. The firm’s 50 day moving average is $5.42 and its 200-day moving average is $5.67. The firm has a market cap of $2.27 billion, a P/E ratio of -27.30 and a beta of 1.00.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings results on Thursday, February 8th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.02. Prospect Capital had a negative net margin of 1.47% and a positive return on equity of 13.48%. The firm had revenue of $210.94 million for the quarter, compared to the consensus estimate of $226.14 million. Equities analysts anticipate that Prospect Capital will post 0.82 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on PSEC. Wells Fargo & Company raised their price target on shares of Prospect Capital from $5.50 to $5.75 and gave the stock an “underweight” rating in a research note on Monday, January 29th. StockNews.com raised shares of Prospect Capital from a “sell” rating to a “hold” rating in a research note on Friday, April 26th.

Insider Activity

In other Prospect Capital news, CFO Dask Kristin Lea Van purchased 5,000 shares of the business’s stock in a transaction on Monday, March 11th. The shares were bought at an average cost of $5.44 per share, for a total transaction of $27,200.00. Following the completion of the purchase, the chief financial officer now directly owns 10,000 shares of the company’s stock, valued at $54,400. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 26.69% 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.