Prospect Capital (NASDAQ:PSEC) Releases Earnings Results, Beats Estimates By $0.04 EPS

Prospect Capital (NASDAQ:PSEC) announced its quarterly earnings results on Thursday. The financial services provider reported $0.15 EPS for the quarter, topping the consensus estimate of $0.11 by $0.04, Zacks reports. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.03%.

Prospect Capital Stock Performance

Shares of NASDAQ PSEC traded up $0.03 during midday trading on Thursday, reaching $2.28. 4,723,225 shares of the company were exchanged, compared to its average volume of 4,893,347. The stock has a fifty day simple moving average of $2.24 and a 200 day simple moving average of $2.48. Prospect Capital has a 1 year low of $2.11 and a 1 year high of $3.13. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.59. The stock has a market cap of $1.14 billion, a P/E ratio of -6.16 and a beta of 0.79.

Insider Buying and Selling

In other news, CEO John F. Barry bought 1,067,648 shares of Prospect Capital stock in a transaction dated Tuesday, June 23rd. The stock was bought at an average price of $2.27 per share, for a total transaction of $2,423,560.96. Following the purchase, the chief executive officer owned 89,213,725 shares of the company’s stock, valued at approximately $202,515,155.75. The trade was a 1.21% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. In the last ninety days, insiders have acquired 2,732,648 shares of company stock worth $6,216,361. 0.03% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Prospect Capital

Institutional investors have recently made changes to their positions in the stock. Onyx Bridge Wealth Group LLC acquired a new stake in shares of Prospect Capital in the fourth quarter valued at about $41,000. NewEdge Advisors LLC increased its holdings in Prospect Capital by 115,766.7% in the fourth quarter. NewEdge Advisors LLC now owns 13,904 shares of the financial services provider’s stock valued at $36,000 after buying an additional 13,892 shares in the last quarter. XTX Topco Ltd increased its holdings in Prospect Capital by 156.9% in the fourth quarter. XTX Topco Ltd now owns 221,995 shares of the financial services provider’s stock valued at $575,000 after buying an additional 135,566 shares in the last quarter. Claro Advisors Inc. lifted its position in shares of Prospect Capital by 13.3% during the 4th quarter. Claro Advisors Inc. now owns 192,405 shares of the financial services provider’s stock valued at $498,000 after acquiring an additional 22,540 shares during the period. Finally, Boothbay Fund Management LLC acquired a new stake in shares of Prospect Capital during the 4th quarter valued at approximately $33,000. 9.06% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

PSEC has been the topic of a number of research analyst reports. Weiss Ratings upgraded Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, May 29th. Wells Fargo & Company dropped their price target 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, Wall Street Zen upgraded Prospect Capital from a “hold” rating to a “buy” rating in a research note on Sunday, June 21st. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat, the stock has a consensus rating of “Sell” and a consensus target price of $2.00.

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.