Prospect Capital Co. Declares Monthly Dividend of $0.06 (NASDAQ:PSEC)

Prospect Capital Co. (NASDAQ:PSEC) announced a monthly dividend on Thursday, February 8th, Wall Street Journal reports. Shareholders of record on Friday, April 26th will be paid a dividend of 0.06 per share by the financial services provider on Tuesday, May 21st. This represents a $0.72 annualized dividend and a yield of 13.15%. The ex-dividend date is Thursday, April 25th.

Prospect Capital has a payout ratio of 98.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities analysts expect Prospect Capital to earn $0.72 per share next year, which means the company may not be able to cover its $0.72 annual dividend with an expected future payout ratio of 100.0%.

Prospect Capital Price Performance

Shares of PSEC stock opened at $5.48 on Wednesday. The firm has a 50 day moving average price of $5.52 and a two-hundred day moving average price of $5.72. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.07 and a current ratio of 1.07. Prospect Capital has a 12-month low of $5.03 and a 12-month high of $6.90.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings results on Thursday, February 8th. The financial services provider reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.02. The company had revenue of $210.94 million during the quarter, compared to the consensus estimate of $226.14 million. Prospect Capital had a negative net margin of 1.47% and a positive return on equity of 13.48%. Research analysts predict that Prospect Capital will post 0.82 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Dask Kristin Lea Van bought 5,000 shares of the firm’s stock in a transaction on Monday, March 11th. The shares were purchased at an average price of $5.44 per share, with a total value of $27,200.00. Following the completion of the purchase, the chief financial officer now owns 10,000 shares in the company, valued at approximately $54,400. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 26.69% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Wells Fargo & Company lifted their price objective on shares of Prospect Capital from $5.50 to $5.75 and gave the company an “underweight” rating in a research note on Monday, January 29th.

Prospect Capital Company Profile

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.