Prospect Capital (NASDAQ:PSEC) Sees Strong Trading Volume - Still a Buy?

Prospect Capital Co. (NASDAQ:PSEC - Get Free Report) shares saw unusually-strong trading volume on Monday . Approximately 2,788,540 shares changed hands during trading, an increase of 25% from the previous session's volume of 2,234,105 shares.The stock last traded at $4.30 and had previously closed at $4.47.

Wall Street Analyst Weigh In

Several research analysts have weighed in on PSEC shares. StockNews.com downgraded Prospect Capital from a "hold" rating to a "sell" rating in a report on Friday, August 30th. Wells Fargo & Company cut their price objective on Prospect Capital from $5.00 to $4.50 and set an "underweight" rating on the stock in a research note on Friday, August 30th.

Prospect Capital Stock Down 6.5 %

The business's 50-day moving average price is $5.26 and its 200-day moving average price is $5.35. The firm has a market capitalization of $1.81 billion, a PE ratio of -16.15 and a beta of 1.00. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.66.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last posted its earnings results on Wednesday, August 28th. The financial services provider reported $0.25 EPS for the quarter, topping the consensus estimate of $0.18 by $0.07. Prospect Capital had a return on equity of 13.53% and a net margin of 28.07%. The business had revenue of $212.26 million during the quarter. During the same quarter last year, the business earned $0.23 EPS.

Prospect Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, November 19th. Investors of record on Tuesday, October 29th will be paid a $0.06 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 17.22%. The ex-dividend date of this dividend is Tuesday, October 29th. Prospect Capital's payout ratio is presently -276.92%.

Hedge Funds Weigh In On Prospect Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of PSEC. Rothschild Investment LLC acquired a new position in shares of Prospect Capital during the second quarter worth $27,000. Headlands Technologies LLC grew its position in Prospect Capital by 2,266.9% during the first quarter. Headlands Technologies LLC now owns 7,574 shares of the financial services provider's stock valued at $42,000 after buying an additional 7,254 shares during the period. MWA Asset Management purchased a new stake in Prospect Capital in the 3rd quarter worth about $53,000. Global Assets Advisory LLC bought a new position in shares of Prospect Capital in the third quarter worth $64,000. Finally, Empowered Funds LLC purchased a new stake in Prospect Capital in the 1st quarter worth approximately $73,000. Institutional investors own 9.06% 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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