Prospect Capital Corporation (PSEC) to Issue Monthly Dividend of $0.04 on November 18th

Prospect Capital Corporation (NASDAQ:PSEC) announced a monthly dividend on Wednesday, August 19th. Shareholders of record on Wednesday, October 28th will be paid a dividend of $0.0350 per share by the financial services provider on Wednesday, November 18th. This represents a $0.42 annualized dividend and a yield of 28.4%. The ex-dividend date of this dividend is Wednesday, October 28th.

Prospect Capital has decreased its dividend by an average of 0.1% per year 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. Research 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 Price Performance

PSEC stock opened at $1.48 on Monday. Prospect Capital has a fifty-two week low of $1.43 and a fifty-two week high of $3.12. The business’s 50 day moving average price is $2.04 and its two-hundred day moving average price is $2.25. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.87 and a current ratio of 0.87. The company has a market capitalization of $790.05 million, a price-to-earnings ratio of 29.60 and a beta of 0.82.

Prospect Capital (NASDAQ:PSEC) last announced its earnings results on Thursday, August 20th. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.04. Prospect Capital had a return on equity of 12.15% and a net margin of 19.33%. The firm had revenue of $155.76 million during the quarter, compared to analyst estimates of $149.80 million. As a group, analysts forecast that Prospect Capital will post 0.38 earnings per share for the current fiscal year.

Insider Activity

In other Prospect Capital news, CEO John Barry. III bought 1,217,105 shares of the stock in a transaction dated Friday, September 4th. The stock was purchased at an average cost of $2.24 per share, for a total transaction of $2,726,315.20. Following the completion of the acquisition, the chief executive officer owned 90,479,988 shares of the company’s stock, valued at approximately $202,675,173.12. This trade represents a 1.36% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 25.94% of the company’s stock.

Institutional Trading of Prospect Capital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. WINTON GROUP Ltd bought a new position in Prospect Capital during the 2nd quarter valued at approximately $35,000. ARS Wealth Advisors Group LLC bought a new stake in Prospect Capital in the third quarter worth $36,000. Samalin Investment Counsel LLC bought a new stake in Prospect Capital in the third quarter worth $38,000. Caitong International Asset Management Co. Ltd grew its stake in shares of Prospect Capital by 55.5% in the second quarter. Caitong International Asset Management Co. Ltd now owns 16,970 shares of the financial services provider’s stock worth $39,000 after acquiring an additional 6,056 shares during the last quarter. Finally, Sensible Money LLC purchased a new stake in shares of Prospect Capital in the third quarter worth $39,000. Hedge funds and other institutional investors own 9.06% of the company’s stock.

About Prospect Capital

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.