Prospect Capital Co. (NASDAQ:PSEC) Announces $0.06 Monthly Dividend

Prospect Capital Co. (NASDAQ:PSEC) declared a monthly dividend on Wednesday, May 8th, Zacks reports. Stockholders of record on Wednesday, May 29th will be paid a dividend of 0.06 per share by the financial services provider on Tuesday, June 18th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 13.21%. The ex-dividend date is Wednesday, May 29th.

Prospect Capital has increased its dividend by an average of 13.6% per year over the last three years. Prospect Capital has a dividend payout ratio of 98.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Prospect Capital to earn $0.72 per share next year, which means the company may not be able to cover its $0.72 annual dividend with an expected future payout ratio of 100.0%.

Prospect Capital Stock Performance

PSEC stock remained flat at $5.45 during mid-day trading on Friday. The company’s stock had a trading volume of 885,923 shares, compared to its average volume of 2,034,933. Prospect Capital has a 1-year low of $5.03 and a 1-year high of $6.69. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.07 and a current ratio of 1.07. The business’s 50 day moving average price is $5.42 and its 200 day moving average price is $5.67. The company has a market capitalization of $2.26 billion, a P/E ratio of -27.30 and a beta of 1.00.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings data on Thursday, February 8th. The financial services provider reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.02. The company had revenue of $210.94 million during the quarter, compared to analyst estimates of $226.14 million. Prospect Capital had a negative net margin of 1.47% and a positive return on equity of 13.48%. As a group, equities analysts expect that Prospect Capital will post 0.82 EPS for the current fiscal year.

Insider Buying and Selling

In other Prospect Capital news, CFO Dask Kristin Lea Van acquired 5,000 shares of the stock in a transaction on Monday, March 11th. The shares were purchased at an average price of $5.44 per share, for a total transaction of $27,200.00. Following the completion of the acquisition, the chief financial officer now owns 10,000 shares in the company, valued at approximately $54,400. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 26.69% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several research firms have weighed in on PSEC. StockNews.com raised shares of Prospect Capital from a “sell” rating to a “hold” rating in a research note on Friday, April 26th. Wells Fargo & Company boosted their target price on Prospect Capital from $5.50 to $5.75 and gave the company an “underweight” rating in a research report on Monday, January 29th.

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.