Prospect Capital (NASDAQ:PSEC) Sets New 12-Month Low - Time to Sell?

Prospect Capital Co. (NASDAQ:PSEC - Get Free Report) hit a new 52-week low during trading on Monday . The company traded as low as $4.00 and last traded at $4.06, with a volume of 893610 shares trading hands. The stock had previously closed at $4.11.

Wall Street Analysts Forecast Growth

Separately, StockNews.com raised Prospect Capital from a "sell" rating to a "hold" rating in a research note on Friday, December 6th.

Prospect Capital Price Performance

The company's 50-day simple moving average is $4.29 and its 200 day simple moving average is $4.60. The company has a market capitalization of $1.65 billion, a P/E ratio of -18.50 and a beta of 0.85. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.60.

Prospect Capital Dividend Announcement

The company also recently disclosed a dividend, which was paid on Thursday, March 20th. Stockholders of record on Thursday, February 27th were paid a $0.045 dividend. This represents a dividend yield of 12.47%. The ex-dividend date of this dividend was Wednesday, February 26th. Prospect Capital's payout ratio is -270.00%.

Insider Buying and Selling

In other news, CEO John F. Barry purchased 2,000,000 shares of the firm's stock in a transaction on Tuesday, March 11th. The stock was bought at an average cost of $4.32 per share, for a total transaction of $8,640,000.00. Following the completion of the acquisition, the chief executive officer now directly owns 81,501,933 shares of the company's stock, valued at approximately $352,088,350.56. The trade was a 2.52 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director William Gremp purchased 19,100 shares of the stock in a transaction dated Tuesday, March 18th. The stock was acquired at an average cost of $4.29 per share, for a total transaction of $81,939.00. Following the completion of the transaction, the director now owns 75,153 shares of the company's stock, valued at $322,406.37. The trade was a 34.07 % increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders bought 2,548,000 shares of company stock valued at $10,970,715. Company insiders own 28.25% of the company's stock.

Remove Ads

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in PSEC. Nomura Asset Management Co. Ltd. acquired a new stake in shares of Prospect Capital in the fourth quarter worth $44,000. Centurion Wealth Management LLC acquired a new stake in Prospect Capital in the 4th quarter worth $46,000. Envision Financial Planning LLC acquired a new stake in Prospect Capital in the 4th quarter worth $56,000. PFG Advisors bought a new position in shares of Prospect Capital during the 4th quarter worth about $57,000. Finally, Independent Advisor Alliance acquired a new position in shares of Prospect Capital during the fourth quarter valued at about $62,000. 9.06% of the stock is owned by 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.