Prospect Capital Corporation (PSEC) to Issue Monthly Dividend of $0.05 on January 21st

Prospect Capital Corporation (NASDAQ:PSEC) declared a monthly dividend on Thursday, November 6th. Stockholders of record on Monday, December 29th will be paid a dividend of 0.045 per share by the financial services provider on Wednesday, January 21st. This represents a c) annualized dividend and a dividend yield of 19.7%. The ex-dividend date is Monday, December 29th.

Prospect Capital has decreased its dividend by an average of 0.0%annually over the last three years. Prospect Capital has a payout ratio of 114.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Prospect Capital Price Performance

PSEC opened at $2.74 on Friday. The firm has a market cap of $1.27 billion, a PE ratio of -2.04 and a beta of 0.86. The stock has a 50-day moving average price of $2.74 and a 200-day moving average price of $3.09. Prospect Capital has a 1 year low of $2.52 and a 1 year high of $4.88. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.16 and a quick ratio of 1.16.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings data on Thursday, November 6th. The financial services provider reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.06. The business had revenue of $119.44 million during the quarter, compared to analyst estimates of $169.53 million. Prospect Capital had a negative net margin of 69.68% and a positive return on equity of 12.14%.

Insiders Place Their Bets

In other news, CEO John F. Barry purchased 925,000 shares of the business’s stock in a transaction on Thursday, September 25th. The stock was acquired at an average cost of $2.72 per share, for a total transaction of $2,516,000.00. Following the purchase, the chief executive officer directly owned 86,067,158 shares in the company, valued at $234,102,669.76. This trade represents a 1.09% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO M Grier Eliasek bought 370,000 shares of the business’s stock in a transaction that occurred on Thursday, September 25th. The shares were acquired at an average price of $2.71 per share, with a total value of $1,002,700.00. Following the completion of the transaction, the chief operating officer directly owned 2,501,130 shares of the company’s stock, valued at $6,778,062.30. This trade represents a 17.36% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders bought 2,797,158 shares of company stock worth $7,485,119. Company insiders own 27.98% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in PSEC. VSM Wealth Advisory LLC bought a new position in Prospect Capital in the 1st quarter worth approximately $25,000. American National Bank & Trust bought a new position in shares of Prospect Capital during the second quarter worth $32,000. A4 Wealth Advisors LLC purchased a new position in Prospect Capital during the third quarter valued at $34,000. Significant Wealth Partners LLC bought a new stake in Prospect Capital in the 2nd quarter valued at $36,000. Finally, Private Trust Co. NA lifted its stake in Prospect Capital by 38.5% in the 2nd quarter. Private Trust Co. NA now owns 11,639 shares of the financial services provider’s stock worth $37,000 after purchasing an additional 3,238 shares in the last quarter. 9.06% of the stock is owned by hedge funds and other institutional investors.

About Prospect Capital

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.