Short Interest in Prospect Capital Co. (NASDAQ:PSEC) Expands By 8.2%

Prospect Capital Co. (NASDAQ:PSEC) saw a large increase in short interest in May. As of May 15th, there was short interest totalling 22,310,000 shares, an increase of 8.2% from the April 30th total of 20,620,000 shares. Based on an average trading volume of 4,220,000 shares, the days-to-cover ratio is presently 5.3 days. Approximately 8.2% of the company’s shares are sold short.

PSEC stock traded up $0.21 during trading on Friday, hitting $5.08. 3,276,138 shares of the company’s stock were exchanged, compared to its average volume of 2,527,669. The business has a 50-day moving average price of $4.20 and a two-hundred day moving average price of $5.69. The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of 6.49 and a beta of 0.90. Prospect Capital has a 52-week low of $3.67 and a 52-week high of $6.84. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.74.

Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Monday, May 11th. The financial services provider reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.05. The firm had revenue of $154.50 million during the quarter, compared to analysts’ expectations of $132.87 million. Prospect Capital had a positive return on equity of 8.74% and a negative net margin of 21.78%. During the same quarter in the previous year, the business earned $0.21 earnings per share. On average, equities research analysts anticipate that Prospect Capital will post 0.72 earnings per share for the current fiscal year.

The firm also recently announced a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Monday, August 31st will be paid a dividend of $0.06 per share. This represents a $0.72 annualized dividend and a yield of 14.17%. The ex-dividend date of this dividend is Friday, August 28th. Prospect Capital’s payout ratio is 84.71%.

Several brokerages have recently issued reports on PSEC. TheStreet cut Prospect Capital from a “c” rating to a “d+” rating in a research note on Monday, May 18th. ValuEngine cut Prospect Capital from a “hold” rating to a “sell” rating in a research note on Thursday, April 2nd. BidaskClub upgraded Prospect Capital from a “strong sell” rating to a “sell” rating in a research note on Saturday. Zacks Investment Research upgraded Prospect Capital from a “hold” rating to a “strong-buy” rating and set a $5.25 price objective for the company in a research note on Wednesday. Finally, Raymond James cut Prospect Capital from a “market perform” rating to an “underperform” rating in a research note on Monday, April 20th. Three analysts have rated the stock with a sell rating and one has given a strong buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $5.25.

In other news, CEO John F. Barry bought 4,610,490 shares of the company’s stock in a transaction on Monday, March 16th. The stock was bought at an average cost of $4.77 per share, with a total value of $21,992,037.30. Following the transaction, the chief executive officer now directly owns 53,431,018 shares in the company, valued at approximately $254,865,955.86. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Dask Kristin Lea Van bought 5,000 shares of the company’s stock in a transaction on Tuesday, February 25th. The stock was purchased at an average cost of $6.18 per share, with a total value of $30,900.00. Following the completion of the transaction, the chief financial officer now owns 41,250 shares in the company, valued at $254,925. The disclosure for this purchase can be found here. Over the last ninety days, insiders acquired 11,764,468 shares of company stock valued at $55,080,452. 25.80% of the stock is currently owned by corporate insiders.

Hedge funds have recently bought and sold shares of the stock. Carmichael Hill & Associates Inc. purchased a new stake in Prospect Capital during the fourth quarter worth approximately $26,000. RMR Wealth Builders purchased a new stake in Prospect Capital during the fourth quarter worth approximately $26,000. NEXT Financial Group Inc lifted its stake in Prospect Capital by 78.4% during the fourth quarter. NEXT Financial Group Inc now owns 4,193 shares of the financial services provider’s stock worth $27,000 after purchasing an additional 1,843 shares during the last quarter. Prime Capital Investment Advisors LLC purchased a new stake in Prospect Capital during the first quarter worth approximately $30,000. Finally, Magnolia Capital Advisors LLC purchased a new stake in Prospect Capital during the fourth quarter worth approximately $71,000. Hedge funds and other institutional investors own 14.77% of the company’s stock.

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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