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

Prospect Capital Co. (NASDAQ:PSEC) declared a monthly dividend on Wednesday, May 8th, Zacks reports. Stockholders of record on Wednesday, May 29th will be paid a dividend of 0.06 per share by the financial services provider on Tuesday, June 18th. This represents a $0.72 annualized dividend and a dividend yield of 13.21%. The ex-dividend date of this dividend is Wednesday, May 29th.

Prospect Capital has increased its dividend by an average of 13.6% per year over the last three years. 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 decline. 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 Stock Performance

Prospect Capital stock remained flat at $5.45 during midday trading on Friday. The company had a trading volume of 885,923 shares, compared to its average volume of 2,034,933. The business’s 50 day moving average is $5.42 and its two-hundred day moving average is $5.67. Prospect Capital has a 1 year low of $5.03 and a 1 year high of $6.69. The company has a market capitalization of $2.26 billion, a PE ratio of -27.30 and a beta of 1.00. 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 (NASDAQ:PSEC) last issued 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. Prospect Capital had a positive return on equity of 13.48% and a negative net margin of 1.47%. The business had revenue of $210.94 million during the quarter, compared to the consensus estimate of $226.14 million. On average, equities analysts anticipate that Prospect Capital will post 0.82 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Dask Kristin Lea Van purchased 5,000 shares of Prospect Capital stock in a transaction dated Monday, March 11th. The stock was bought at an average price of $5.44 per share, with a total value of $27,200.00. Following the completion of the acquisition, the chief financial officer now owns 10,000 shares in the company, valued at approximately $54,400. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 26.69% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research analysts have recently commented on PSEC shares. Wells Fargo & Company lifted their price target on shares of Prospect Capital from $5.50 to $5.75 and gave the company an “underweight” rating in a report on Monday, January 29th. StockNews.com raised Prospect Capital from a “sell” rating to a “hold” rating in a report on Friday, April 26th.

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.