Prospect Capital (NASDAQ:PSEC) Reaches New 12-Month Low – What’s Next?

Prospect Capital Corporation (NASDAQ:PSEC) shares hit a new 52-week low during trading on Thursday . The stock traded as low as $2.11 and last traded at $2.20, with a volume of 6982579 shares traded. The stock had previously closed at $2.15.

Analyst Ratings Changes

Several research analysts have commented on the company. Wall Street Zen raised Prospect Capital from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Wells Fargo & Company dropped their price objective on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a research note on Tuesday, May 12th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Prospect Capital in a research note on Tuesday, April 21st. Two research analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, the company has a consensus rating of “Sell” and a consensus price target of $2.00.

Prospect Capital Price Performance

The firm has a market capitalization of $1.10 billion, a P/E ratio of -5.95 and a beta of 0.82. The business has a 50-day moving average of $2.58 and a 200 day moving average of $2.67. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.59.

Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.05. The firm had revenue of $150.07 million during the quarter, compared to analyst estimates of $163.23 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.

Prospect Capital Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be issued a $0.035 dividend. The ex-dividend date of this dividend is Thursday, August 27th. This represents a c) annualized dividend and a dividend yield of 19.1%. Prospect Capital’s dividend payout ratio is currently -145.95%.

Hedge Funds Weigh In On Prospect Capital

Institutional investors have recently bought and sold shares of the company. Van ECK Associates Corp raised its position in shares of Prospect Capital by 9.2% during the 3rd quarter. Van ECK Associates Corp now owns 10,255,640 shares of the financial services provider’s stock valued at $28,203,000 after buying an additional 866,860 shares in the last quarter. GraniteShares Advisors LLC purchased a new stake in shares of Prospect Capital during the 4th quarter valued at about $2,745,000. Tudor Investment Corp ET AL grew its holdings in Prospect Capital by 12.1% during the 3rd quarter. Tudor Investment Corp ET AL now owns 2,604,286 shares of the financial services provider’s stock valued at $7,162,000 after purchasing an additional 282,119 shares during the last quarter. SMH Capital Advisors Inc. grew its holdings in Prospect Capital by 201.5% during the 3rd quarter. SMH Capital Advisors Inc. now owns 438,847 shares of the financial services provider’s stock valued at $1,167,000 after purchasing an additional 293,311 shares during the last quarter. Finally, UBS Group AG grew its holdings in Prospect Capital by 44.5% during the 4th quarter. UBS Group AG now owns 4,989,986 shares of the financial services provider’s stock valued at $12,924,000 after purchasing an additional 1,536,808 shares during the last quarter. Hedge funds and other institutional investors own 9.06% of the company’s stock.

Prospect Capital Company Profile

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.