Prospect Capital Corporation (NASDAQ:PSEC) to Issue $0.04 Monthly Dividend

Prospect Capital Corporation (NASDAQ:PSEC) declared a monthly dividend on Thursday, May 7th. Investors of record on Friday, June 26th will be given a dividend of 0.035 per share by the financial services provider on Wednesday, July 22nd. This represents a c) dividend on an annualized basis and a dividend yield of 16.9%. The ex-dividend date of this dividend is Friday, June 26th.

Prospect Capital has decreased its dividend by an average of 0.0%per year over the last three years. Prospect Capital has a dividend 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 Stock Down 9.6%

Shares of NASDAQ:PSEC traded down $0.27 during mid-day trading on Friday, reaching $2.49. 5,801,396 shares of the stock were exchanged, compared to its average volume of 4,498,310. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 0.62. The company has a market cap of $1.21 billion, a P/E ratio of -3.06 and a beta of 0.82. Prospect Capital has a one year low of $2.45 and a one year high of $3.77. The stock’s 50 day simple moving average is $2.67 and its 200-day simple moving average is $2.70.

Prospect Capital (NASDAQ:PSEC) last posted its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.05. The business had revenue of $150.07 million during the quarter, compared to the consensus estimate of $163.23 million. Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.

Insider Buying and Selling

In related news, COO M Grier Eliasek purchased 942,800 shares of Prospect Capital stock in a transaction that occurred on Wednesday, February 11th. The stock was purchased at an average cost of $2.92 per share, with a total value of $2,752,976.00. Following the completion of the transaction, 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 position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Prospect Capital

A number of hedge funds have recently made changes to their positions in PSEC. Millennium Management LLC lifted its position in shares of Prospect Capital by 356.3% in the third quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider’s stock valued at $17,138,000 after buying an additional 4,866,312 shares during the last quarter. Independent Financial Group LLC acquired a new stake in shares of Prospect Capital in the first quarter valued at approximately $8,644,000. Private Management Group Inc. acquired a new stake in shares of Prospect Capital in the fourth quarter valued at approximately $8,352,000. Marshall Wace LLP lifted its position in shares of Prospect Capital by 70.7% in the third quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider’s stock valued at $18,338,000 after buying an additional 2,761,351 shares during the last quarter. Finally, Balyasny Asset Management L.P. lifted its position in shares of Prospect Capital by 73.9% in the second quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider’s stock valued at $18,002,000 after buying an additional 2,405,299 shares during the last quarter. 9.06% of the stock is owned by institutional investors and hedge funds.

About Prospect Capital

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.