Prospect Capital (NASDAQ:PSEC) Share Price Passes Above 200-Day Moving Average – Here’s Why

Prospect Capital Corporation (NASDAQ:PSEC) shares crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $2.74 and traded as high as $2.84. Prospect Capital shares last traded at $2.79, with a volume of 3,061,742 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on PSEC. Wall Street Zen cut Prospect Capital from a “buy” rating to a “hold” rating in a research note on Saturday, February 14th. Weiss Ratings reissued a “sell (d)” rating on shares of Prospect Capital in a research report on Thursday, January 22nd. Two equities research analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, Prospect Capital has a consensus rating of “Sell” and an average target price of $2.50.

Prospect Capital Trading Down 2.4%

The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 0.62. The company has a market cap of $1.35 billion, a PE ratio of -3.44 and a beta of 0.90. The stock has a 50 day moving average price of $2.75 and a 200 day moving average price of $2.74.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings data on Monday, February 9th. The financial services provider reported $0.19 EPS for the quarter, beating the consensus estimate of $0.10 by $0.09. The business had revenue of $176.00 million during the quarter, compared to analyst estimates of $156.34 million. Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.

Prospect Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Tuesday, April 28th will be paid a dividend of $0.045 per share. The ex-dividend date of this dividend is Tuesday, April 28th. This represents a c) dividend on an annualized basis and a dividend yield of 19.4%. Prospect Capital’s dividend payout ratio (DPR) is currently -66.67%.

Insider Activity

In other Prospect Capital news, COO M Grier Eliasek bought 942,800 shares of the stock in a transaction dated Wednesday, February 11th. The stock was purchased at an average cost of $2.92 per share, for a total transaction of $2,752,976.00. Following the completion of the acquisition, the chief operating officer owned 3,443,930 shares of the company’s stock, valued at approximately $10,056,275.60. This trade represents a 37.69% 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 27.98% of the company’s stock.

Institutional Investors Weigh In On Prospect Capital

A number of institutional investors have recently modified their holdings of the stock. Catalyst Financial Partners LLC purchased a new position in shares of Prospect Capital in the 4th quarter worth about $26,000. Bfsg LLC bought a new stake in Prospect Capital during the 4th quarter valued at about $27,000. Navalign LLC bought a new position in shares of Prospect Capital in the third quarter worth approximately $28,000. Ground Swell Capital LLC purchased a new stake in shares of Prospect Capital during the fourth quarter valued at approximately $28,000. Finally, Schonfeld Strategic Advisors LLC bought a new stake in shares of Prospect Capital during the fourth quarter valued at approximately $28,000. 9.06% of the stock is owned by hedge funds and other institutional investors.

Prospect Capital Company Profile

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.