Zacks Investment Research cut shares of Prospect Capital (NASDAQ:PSEC) from a hold rating to a sell rating in a report released on Friday, Zacks.com reports.

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. “

Several other analysts have also commented on PSEC. ValuEngine lowered Prospect Capital from a hold rating to a sell rating in a report on Tuesday, November 5th. BidaskClub lowered Prospect Capital from a hold rating to a sell rating in a report on Saturday, November 2nd. Finally, TheStreet lowered Prospect Capital from a b- rating to a c rating in a report on Friday, September 13th. Five analysts have rated the stock with a sell rating, The stock has a consensus rating of Sell and a consensus price target of $5.00.

PSEC traded down $0.02 during trading on Friday, hitting $6.48. The company’s stock had a trading volume of 37,046 shares, compared to its average volume of 1,443,127. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.68. Prospect Capital has a twelve month low of $5.70 and a twelve month high of $6.98. The business’s fifty day simple moving average is $6.49 and its 200 day simple moving average is $6.57. The firm has a market capitalization of $2.37 billion, a price-to-earnings ratio of 7.62 and a beta of 0.76.

Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings data on Wednesday, November 6th. The financial services provider reported $0.05 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.14). Prospect Capital had a net margin of 11.49% and a return on equity of 9.05%. The business had revenue of $161.88 million during the quarter, compared to analyst estimates of $162.98 million. During the same period in the previous year, the business posted $0.23 earnings per share. As a group, equities research analysts forecast that Prospect Capital will post 0.72 earnings per share for the current fiscal year.

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, December 19th. Shareholders of record on Friday, November 29th will be issued a $0.06 dividend. This represents a $0.72 annualized dividend and a yield of 11.11%. The ex-dividend date of this dividend is Wednesday, November 27th. Prospect Capital’s payout ratio is currently 84.71%.

In other news, CEO John F. Barry purchased 139,761 shares of the stock in a transaction dated Thursday, August 29th. The shares were purchased at an average cost of $6.40 per share, with a total value of $894,470.40. Following the completion of the purchase, the chief executive officer now directly owns 39,460,914 shares of the company’s stock, valued at approximately $252,549,849.60. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO John F. Barry purchased 237,857 shares of the stock in a transaction dated Tuesday, September 3rd. The stock was purchased at an average cost of $6.34 per share, for a total transaction of $1,508,013.38. Following the completion of the purchase, the chief executive officer now directly owns 39,906,051 shares of the company’s stock, valued at $253,004,363.34. The disclosure for this purchase can be found here. 11.30% of the stock is currently owned by company insiders.

Large investors have recently modified their holdings of the company. Principle Wealth Partners LLC acquired a new stake in shares of Prospect Capital in the third quarter worth approximately $153,000. Vanguard Capital Wealth Advisors boosted its stake in shares of Prospect Capital by 5.6% in the second quarter. Vanguard Capital Wealth Advisors now owns 163,723 shares of the financial services provider’s stock worth $1,069,000 after acquiring an additional 8,662 shares during the last quarter. First National Bank of Omaha acquired a new stake in shares of Prospect Capital in the third quarter worth approximately $66,000. GSA Capital Partners LLP acquired a new stake in shares of Prospect Capital in the second quarter worth approximately $95,000. Finally, California Public Employees Retirement System boosted its stake in shares of Prospect Capital by 56.2% in the third quarter. California Public Employees Retirement System now owns 870,300 shares of the financial services provider’s stock worth $5,735,000 after acquiring an additional 313,200 shares during the last quarter. 12.34% of the stock is currently owned by hedge funds and other institutional investors.

About Prospect Capital

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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