Prospect Capital (NASDAQ:PSEC) Hits New 52-Week Low – Here’s Why

Shares of Prospect Capital Corporation (NASDAQ:PSEC) reached a new 52-week low on Monday . The company traded as low as $2.45 and last traded at $2.5050, with a volume of 1378388 shares changing hands. The stock had previously closed at $2.51.

Analyst Ratings Changes

A number of research firms have recently commented on PSEC. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a research report on Wednesday, October 8th. Wall Street Zen raised shares of Prospect Capital from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Two investment analysts have rated the stock with a Sell rating, Based on data from MarketBeat, Prospect Capital currently has a consensus rating of “Sell” and an average target price of $2.50.

Prospect Capital Stock Performance

The company’s 50-day moving average is $2.64 and its two-hundred day moving average is $2.86. The company has a market capitalization of $1.20 billion, a P/E ratio of -2.97 and a beta of 0.85. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.64.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings results on Thursday, November 6th. The financial services provider reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.06. Prospect Capital had a negative net margin of 42.50% and a positive return on equity of 12.29%. The business had revenue of $119.44 million during the quarter, compared to analysts’ expectations of $169.53 million.

Prospect Capital Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Wednesday, February 18th. Shareholders of record on Wednesday, January 28th will be given a dividend of $0.045 per share. The ex-dividend date is Wednesday, January 28th. This represents a c) dividend on an annualized basis and a yield of 21.2%. Prospect Capital’s dividend payout ratio (DPR) is presently -62.79%.

Hedge Funds Weigh In On Prospect Capital

Several institutional investors have recently modified their holdings of PSEC. Private Trust Co. NA raised its holdings in shares of Prospect Capital by 38.5% during the 2nd quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider’s stock valued at $37,000 after buying an additional 3,238 shares in the last quarter. Raymond James Financial Inc. grew its position in Prospect Capital by 0.5% during the second quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider’s stock valued at $2,685,000 after acquiring an additional 3,880 shares during the last quarter. Inspire Advisors LLC raised its stake in shares of Prospect Capital by 17.1% during the second quarter. Inspire Advisors LLC now owns 27,432 shares of the financial services provider’s stock worth $87,000 after acquiring an additional 4,015 shares in the last quarter. D.A. Davidson & CO. lifted its holdings in shares of Prospect Capital by 1.3% in the 2nd quarter. D.A. Davidson & CO. now owns 351,494 shares of the financial services provider’s stock worth $1,118,000 after acquiring an additional 4,613 shares during the last quarter. Finally, Cetera Investment Advisers boosted its stake in shares of Prospect Capital by 1.9% in the 2nd quarter. Cetera Investment Advisers now owns 262,719 shares of the financial services provider’s stock valued at $835,000 after purchasing an additional 4,978 shares in the last quarter. 9.06% of the stock is currently owned by institutional investors.

About Prospect Capital

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.