Prospect Capital (NASDAQ:PSEC) Hits New 52-Week Low – What’s Next?

Prospect Capital Corporation (NASDAQ:PSEC) shares hit a new 52-week low during mid-day trading on Friday . The company traded as low as $2.18 and last traded at $2.18, with a volume of 6529077 shares traded. The stock had previously closed at $2.25.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on PSEC shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Prospect Capital in a report on Tuesday, April 21st. Wall Street Zen cut Prospect Capital from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Finally, Wells Fargo & Company cut their price objective on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a report on Tuesday. Two equities research analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, Prospect Capital currently has an average rating of “Sell” and a consensus target price of $2.00.

Prospect Capital Price Performance

The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 0.59. The firm has a market cap of $1.09 billion, a P/E ratio of -5.89 and a beta of 0.82. The company has a fifty day moving average price of $2.63 and a two-hundred day moving average price of $2.69.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.05. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.The business had revenue of $150.07 million for the quarter, compared to analysts’ expectations of $163.23 million.

Prospect Capital Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be given a $0.035 dividend. This represents a c) dividend on an annualized basis and a yield of 19.3%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital’s dividend payout ratio (DPR) is currently -145.95%.

Institutional Investors Weigh In On Prospect Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of PSEC. Catalyst Financial Partners LLC acquired a new stake in Prospect Capital in the 4th quarter valued at approximately $26,000. Bfsg LLC acquired a new stake in Prospect Capital in the 4th quarter valued at approximately $27,000. Navalign LLC acquired a new stake in Prospect Capital in the 3rd quarter valued at approximately $28,000. Ground Swell Capital LLC acquired a new stake in Prospect Capital in the 4th quarter valued at approximately $28,000. Finally, Schonfeld Strategic Advisors LLC acquired a new stake in Prospect Capital in the 4th quarter valued at approximately $28,000. Institutional investors and hedge funds own 9.06% of the company’s stock.

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.