Prospect Capital (NASDAQ:PSEC) Hits New 12-Month Low – What’s Next?

Shares of Prospect Capital Co. (NASDAQ:PSEC) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $4.09 and last traded at $4.22, with a volume of 703552 shares trading hands. The stock had previously closed at $4.17.

Analysts Set New Price Targets

Separately, StockNews.com upgraded Prospect Capital from a “sell” rating to a “hold” rating in a report on Friday, December 6th.

Prospect Capital Stock Up 1.4 %

The company has a debt-to-equity ratio of 0.65, a current ratio of 0.48 and a quick ratio of 0.48. The business’s 50-day moving average price is $4.32 and its two-hundred day moving average price is $4.82.

Prospect Capital Cuts Dividend

The firm also recently disclosed a dividend, which will be paid on Thursday, March 20th. Stockholders of record on Wednesday, February 26th will be given a $0.045 dividend. The ex-dividend date is Wednesday, February 26th. Prospect Capital’s dividend payout ratio is currently -207.69%.

Insiders Place Their Bets

In related news, CEO John F. Barry purchased 837,273 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was purchased at an average price of $4.47 per share, with a total value of $3,742,610.31. Following the completion of the transaction, the chief executive officer now owns 73,450,112 shares of the company’s stock, valued at approximately $328,322,000.64. This trade represents a 1.15 % increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO M Grier Eliasek acquired 210,000 shares of the stock in a transaction dated Friday, November 29th. The shares were bought at an average cost of $4.81 per share, with a total value of $1,010,100.00. Following the completion of the purchase, the chief operating officer now directly owns 2,131,130 shares in the company, valued at approximately $10,250,735.30. This trade represents a 10.93 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have acquired 5,273,173 shares of company stock valued at $23,701,420. Insiders own 27.10% of the company’s stock.

Hedge Funds Weigh In On Prospect Capital

A number of large investors have recently modified their holdings of PSEC. CWM LLC grew its holdings in shares of Prospect Capital by 101.4% during the 3rd quarter. CWM LLC now owns 19,310 shares of the financial services provider’s stock worth $103,000 after purchasing an additional 9,721 shares during the period. Inspire Investing LLC increased its position in shares of Prospect Capital by 21.0% in the third quarter. Inspire Investing LLC now owns 76,885 shares of the financial services provider’s stock worth $411,000 after acquiring an additional 13,335 shares in the last quarter. Teamwork Financial Advisors LLC raised its stake in shares of Prospect Capital by 17.3% in the 3rd quarter. Teamwork Financial Advisors LLC now owns 63,515 shares of the financial services provider’s stock valued at $340,000 after acquiring an additional 9,380 shares during the period. Sequoia Financial Advisors LLC acquired a new position in shares of Prospect Capital during the 3rd quarter valued at $129,000. Finally, International Assets Investment Management LLC boosted its position in Prospect Capital by 344.0% during the 3rd quarter. International Assets Investment Management LLC now owns 933,083 shares of the financial services provider’s stock worth $4,992,000 after purchasing an additional 722,925 shares during the period. 9.06% of the stock is currently owned by hedge funds and other institutional investors.

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.