Prospect Capital Corporation (NASDAQ:PSEC) Declares Monthly Dividend of $0.04

Prospect Capital Corporation (NASDAQ:PSEC) declared a monthly dividend on Wednesday, November 4th. Investors of record on Tuesday, December 29th will be given a dividend of $0.0350 per share by the financial services provider on Wednesday, January 20th. This represents a $0.42 annualized dividend and a yield of 29.7%. The ex-dividend date is Tuesday, December 29th.

Prospect Capital has decreased its dividend by an average of 0.1% annually over the last three years. Prospect Capital has a dividend payout ratio of 89.4% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Analysts expect Prospect Capital to earn $0.35 per share next year, which means the company may not be able to cover its $0.42 annual dividend with an expected future payout ratio of 120.0%.

Prospect Capital Trading Down 1.7%

PSEC stock traded down $0.03 during midday trading on Thursday, hitting $1.42. The company had a trading volume of 5,614,468 shares, compared to its average volume of 5,119,606. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.64. Prospect Capital has a 52 week low of $1.40 and a 52 week high of $3.12. The stock’s 50 day moving average price is $1.93 and its 200 day moving average price is $2.35. The stock has a market cap of $755.36 million, a price-to-earnings ratio of 28.30 and a beta of 0.84.

Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Wednesday, November 4th. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.05. Prospect Capital had a net margin of 19.33% and a return on equity of 12.15%. The firm had revenue of $151.74 million for the quarter, compared to analysts’ expectations of $163.14 million. As a group, equities research analysts expect that Prospect Capital will post 0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Prospect Capital

In related news, CEO John Barry. III purchased 1,217,105 shares of Prospect Capital stock in a transaction that occurred on Friday, September 4th. The shares were bought at an average price of $2.24 per share, for a total transaction of $2,726,315.20. Following the completion of the transaction, the chief executive officer directly owned 90,479,988 shares of the company’s stock, valued at $202,675,173.12. This represents a 1.36% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 25.94% of the company’s stock.

Institutional Investors Weigh In On Prospect Capital

Several institutional investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd grew its position in Prospect Capital by 55.5% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 16,970 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 6,056 shares during the period. Private Advisor Group LLC lifted its holdings in shares of Prospect Capital by 0.4% during the 1st quarter. Private Advisor Group LLC now owns 1,711,638 shares of the financial services provider’s stock valued at $4,467,000 after buying an additional 6,262 shares during the period. Signaturefd LLC boosted its stake in shares of Prospect Capital by 255.2% in the 3rd quarter. Signaturefd LLC now owns 19,337 shares of the financial services provider’s stock worth $40,000 after buying an additional 13,893 shares during the last quarter. Integrity Advisory Solutions LLC purchased a new position in shares of Prospect Capital in the 3rd quarter worth $29,000. Finally, Claro Advisors Inc. lifted its holdings in Prospect Capital by 7.8% in the third quarter. Claro Advisors Inc. now owns 207,700 shares of the financial services provider’s stock valued at $432,000 after acquiring an additional 15,000 shares during the period. 9.06% of the stock is owned by hedge funds and other institutional investors.

Prospect Capital Company Profile

Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that provides financing and investment capital to middle-market companies. The company primarily invests in privately held businesses through first-lien and second-lien loans, mezzanine debt, and other debt securities, while also making equity and equity-related investments in selected companies.

Prospect Capital invests across a range of industries and has additional exposure to areas such as real estate, structured credit, and financial services.