Investors Purchase Large Volume of Put Options on Prospect Capital (PSEC)
Prospect Capital Co. (NASDAQ:PSEC) saw unusually large options trading on Wednesday. Stock investors purchased 3,035 put options on the company. This represents an increase of 1,267% compared to the average daily volume of 222 put options.
Shares of NASDAQ PSEC opened at $6.60 on Thursday. The company has a market capitalization of $2.42 billion, a P/E ratio of 8.35 and a beta of 0.69. Prospect Capital has a 52 week low of $5.70 and a 52 week high of $7.60. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.05 and a current ratio of 1.05.
Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Wednesday, February 6th. The financial services provider reported $0.22 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.22. The firm had revenue of $187.88 million for the quarter, compared to analyst estimates of $182.09 million. Prospect Capital had a return on equity of 9.37% and a net margin of 25.89%. Prospect Capital’s revenue for the quarter was up 15.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 earnings per share. Sell-side analysts predict that Prospect Capital will post 0.95 earnings per share for the current fiscal year.
Several equities analysts have issued reports on PSEC shares. BidaskClub lowered Prospect Capital from a “hold” rating to a “sell” rating in a research note on Tuesday, December 18th. ValuEngine lowered Prospect Capital from a “hold” rating to a “sell” rating in a research note on Tuesday, December 18th. Zacks Investment Research lowered Prospect Capital from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 15th. Barclays lowered Prospect Capital from an “equal weight” rating to an “underweight” rating and dropped their price target for the stock from $7.00 to $6.00 in a research note on Tuesday, January 22nd. Finally, National Securities restated a “sell” rating and set a $4.00 price target on shares of Prospect Capital in a research note on Monday, February 11th. Three investment analysts have rated the stock with a sell rating and two have assigned a hold rating to the company’s stock. Prospect Capital currently has an average rating of “Sell” and a consensus target price of $6.00.
In other news, CEO John F. Barry acquired 299,707 shares of the firm’s stock in a transaction that occurred on Monday, December 31st. The stock was purchased at an average cost of $6.31 per share, for a total transaction of $1,891,151.17. Following the completion of the acquisition, the chief executive officer now directly owns 37,892,777 shares of the company’s stock, valued at approximately $239,103,422.87. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider John F. Barry acquired 100,000 shares of the firm’s stock in a transaction that occurred on Monday, February 11th. The stock was purchased at an average price of $6.39 per share, with a total value of $639,000.00. Following the completion of the acquisition, the insider now directly owns 38,335,551 shares of the company’s stock, valued at $244,964,170.89. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 701,414 shares of company stock valued at $4,434,182. 10.20% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. NumerixS Investment Technologies Inc acquired a new position in Prospect Capital in the fourth quarter valued at approximately $27,000. Reilly Financial Advisors LLC raised its stake in shares of Prospect Capital by 342.9% during the 4th quarter. Reilly Financial Advisors LLC now owns 7,750 shares of the financial services provider’s stock worth $49,000 after buying an additional 6,000 shares during the period. Arete Wealth Advisors LLC acquired a new position in shares of Prospect Capital during the 4th quarter worth approximately $72,000. AE Wealth Management LLC raised its stake in shares of Prospect Capital by 20.6% during the 4th quarter. AE Wealth Management LLC now owns 12,812 shares of the financial services provider’s stock worth $81,000 after buying an additional 2,189 shares during the period. Finally, Putnam FL Investment Management Co. purchased a new stake in shares of Prospect Capital during the fourth quarter worth approximately $84,000. Hedge funds and other institutional investors own 12.97% of the company’s stock.
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.
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