Prospect Capital (NASDAQ:PSEC) Lifted to “Buy” at Zacks Investment Research

Prospect Capital (NASDAQ:PSECGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Saturday, Zacks.com reports. The brokerage presently has a $8.25 price target on the financial services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 7.56% from the company’s current price.

According to Zacks, “Prospect Capital Corporation is a closed-end investment company that lends to and invests in private and microcap public businesses. Prospect Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments. “

A number of other equities research analysts have also recently issued reports on PSEC. Wells Fargo & Company lowered their target price on shares of Prospect Capital from $7.00 to $6.50 and set an “underweight” rating on the stock in a report on Monday, April 25th. StockNews.com assumed coverage on shares of Prospect Capital in a research report on Thursday, March 31st. They set a “hold” rating for the company. One research analyst has rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $7.38.

Shares of PSEC stock opened at $7.67 on Friday. The company’s fifty day simple moving average is $8.07 and its two-hundred day simple moving average is $8.33. The company has a debt-to-equity ratio of 0.61, a current ratio of 0.51 and a quick ratio of 0.47. Prospect Capital has a 1 year low of $7.29 and a 1 year high of $9.25. The stock has a market capitalization of $3.01 billion, a price-to-earnings ratio of 3.49 and a beta of 0.86.

Prospect Capital (NASDAQ:PSECGet Rating) last issued its earnings results on Tuesday, February 8th. The financial services provider reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.03. Prospect Capital had a net margin of 126.76% and a return on equity of 8.29%. The business had revenue of $175.38 million for the quarter, compared to analysts’ expectations of $169.01 million. During the same quarter in the previous year, the firm posted $0.21 EPS. Equities research analysts anticipate that Prospect Capital will post 0.77 EPS for the current year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Two Sigma Advisers LP grew its position in Prospect Capital by 3,874.0% in the third quarter. Two Sigma Advisers LP now owns 1,975,100 shares of the financial services provider’s stock worth $15,208,000 after acquiring an additional 1,925,400 shares in the last quarter. Van ECK Associates Corp grew its position in Prospect Capital by 23.2% in the first quarter. Van ECK Associates Corp now owns 3,933,957 shares of the financial services provider’s stock worth $32,574,000 after acquiring an additional 741,781 shares in the last quarter. BlackRock Inc. grew its position in Prospect Capital by 31.3% in the third quarter. BlackRock Inc. now owns 2,370,190 shares of the financial services provider’s stock worth $18,251,000 after acquiring an additional 565,410 shares in the last quarter. Two Sigma Investments LP boosted its position in Prospect Capital by 2,862.7% during the third quarter. Two Sigma Investments LP now owns 432,023 shares of the financial services provider’s stock valued at $3,327,000 after buying an additional 417,441 shares during the period. Finally, Allianz Asset Management GmbH boosted its position in Prospect Capital by 148.1% during the third quarter. Allianz Asset Management GmbH now owns 607,343 shares of the financial services provider’s stock valued at $4,677,000 after buying an additional 362,512 shares during the period. Hedge funds and other institutional investors own 7.69% of the company’s stock.

About Prospect Capital (Get Rating)

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.

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