Prospect Capital (NASDAQ:PSEC) Downgraded by BidaskClub to “Sell”

BidaskClub lowered shares of Prospect Capital (NASDAQ:PSEC) from a hold rating to a sell rating in a research note issued to investors on Thursday morning, BidAskClub reports.

Several other research analysts have also recently issued reports on PSEC. ValuEngine upgraded shares of Prospect Capital from a strong sell rating to a sell rating in a report on Thursday, July 2nd. Zacks Investment Research downgraded shares of Prospect Capital from a buy rating to a hold rating in a research note on Wednesday, September 9th. Wells Fargo & Company started coverage on shares of Prospect Capital in a report on Thursday, June 25th. They set an underweight rating and a $4.50 price objective on the stock. Finally, TheStreet upgraded Prospect Capital from a d+ rating to a c- rating in a report on Tuesday, June 23rd. Four investment analysts have rated the stock with a sell rating and one has given a hold rating to the company. Prospect Capital has a consensus rating of Sell and a consensus price target of $5.13.

Shares of NASDAQ PSEC opened at $5.11 on Thursday. Prospect Capital has a 52-week low of $3.67 and a 52-week high of $6.75. The firm has a market capitalization of $1.93 billion, a price-to-earnings ratio of -102.20 and a beta of 1.00. The stock has a 50 day moving average price of $5.07 and a 200 day moving average price of $4.86. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.56 and a current ratio of 0.56.

Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Wednesday, August 26th. The financial services provider reported $0.16 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.16. Prospect Capital had a positive return on equity of 8.55% and a negative net margin of 2.60%. Analysts forecast that Prospect Capital will post 0.71 earnings per share for the current year.

The company also recently announced a monthly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Friday, October 30th will be issued a $0.06 dividend. The ex-dividend date of this dividend is Thursday, October 29th. This represents a $0.72 dividend on an annualized basis and a yield of 14.09%. Prospect Capital’s dividend payout ratio is presently 100.00%.

Large investors have recently added to or reduced their stakes in the company. LSV Asset Management raised its stake in shares of Prospect Capital by 18.0% during the 2nd quarter. LSV Asset Management now owns 7,545,984 shares of the financial services provider’s stock worth $38,559,000 after acquiring an additional 1,148,866 shares in the last quarter. UBS Group AG grew its holdings in Prospect Capital by 164.9% in the second quarter. UBS Group AG now owns 1,299,571 shares of the financial services provider’s stock worth $6,641,000 after purchasing an additional 809,014 shares during the last quarter. Van ECK Associates Corp increased its position in shares of Prospect Capital by 14.8% during the first quarter. Van ECK Associates Corp now owns 2,258,279 shares of the financial services provider’s stock worth $9,598,000 after purchasing an additional 290,844 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of Prospect Capital by 6.9% during the 1st quarter. Legal & General Group Plc now owns 2,069,393 shares of the financial services provider’s stock valued at $8,785,000 after purchasing an additional 133,315 shares during the last quarter. Finally, Two Sigma Advisers LP boosted its position in shares of Prospect Capital by 16.5% in the 1st quarter. Two Sigma Advisers LP now owns 863,900 shares of the financial services provider’s stock worth $3,672,000 after purchasing an additional 122,100 shares in the last quarter. Institutional investors and hedge funds own 10.86% 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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