Prospect Capital (NASDAQ:PSEC) Reaches New 1-Year Low – Time to Sell?

Prospect Capital Co. (NASDAQ:PSEC) shares hit a new 52-week low during mid-day trading on Monday . The company traded as low as $3.40 and last traded at $3.47, with a volume of 1315019 shares changing hands. The stock had previously closed at $3.70.

Analyst Upgrades and Downgrades

Separately, StockNews.com cut shares of Prospect Capital from a “hold” rating to a “sell” rating in a research note on Friday.

Prospect Capital Price Performance

The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.76 and a current ratio of 0.76. The firm has a market cap of $1.56 billion, a PE ratio of -17.53 and a beta of 0.85. The firm has a fifty day simple moving average of $4.27 and a two-hundred day simple moving average of $4.58.

Prospect Capital Announces Dividend

The firm also recently disclosed a dividend, which was paid on Thursday, March 20th. Shareholders of record on Thursday, February 27th were given a $0.045 dividend. This represents a yield of 12.47%. The ex-dividend date was Wednesday, February 26th. Prospect Capital’s dividend payout ratio (DPR) is presently -270.00%.

Insiders Place Their Bets

In related news, CEO John F. Barry purchased 24,000 shares of the business’s stock in a transaction dated Monday, March 24th. The shares were purchased at an average cost of $4.24 per share, for a total transaction of $101,760.00. Following the completion of the acquisition, the chief executive officer now owns 82,594,540 shares in the company, valued at approximately $350,200,849.60. This trade represents a 0.03 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director William Gremp acquired 19,100 shares of the firm’s stock in a transaction that occurred on Tuesday, March 18th. The shares were bought at an average price of $4.29 per share, with a total value of $81,939.00. Following the acquisition, the director now directly owns 75,153 shares in the company, valued at $322,406.37. This represents a 34.07 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 2,548,000 shares of company stock worth $10,970,715 over the last quarter. Company insiders own 28.25% of the company’s stock.

Institutional Trading of Prospect Capital

Several institutional investors and hedge funds have recently made changes to their positions in the company. Navis Wealth Advisors LLC bought a new stake in shares of Prospect Capital in the 4th quarter valued at about $263,000. XTX Topco Ltd acquired a new position in shares of Prospect Capital in the 3rd quarter valued at $88,000. Ridgeline Wealth LLC purchased a new position in shares of Prospect Capital in the fourth quarter worth about $407,000. Atria Wealth Solutions Inc. increased its holdings in Prospect Capital by 158.5% in the 4th quarter. Atria Wealth Solutions Inc. now owns 63,477 shares of the financial services provider’s stock worth $274,000 after buying an additional 38,923 shares during the period. Finally, Strategic Financial Concepts LLC raised its position in Prospect Capital by 131.8% during the 4th quarter. Strategic Financial Concepts LLC now owns 49,134 shares of the financial services provider’s stock worth $212,000 after buying an additional 27,935 shares during the last quarter. 9.06% of the stock is currently owned by institutional investors.

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.