Stock traders are buying a high volume of put options on Prospect Capital (NASDAQ:PSEC)
Prospect Capital Co. (NASDAQ:PSEC – Get Rating) was the target of unusual options trading on Friday. Investors bought 20,770 put options on the company. This is an increase of approximately 2,445% from the average daily volume of 816 put options.
Analyst upgrades and downgrades
Separately, TheStreet upgraded Prospect Capital from a “b” to a “c+” rating in a Tuesday, July 26 report.
Institutional entries and exits
Hedge funds and other institutional investors have recently changed their holdings in the company. Larson Financial Group LLC bought a new position in shares of Prospect Capital during the second quarter at a value of $34,000. Private Trust Co. NA bought a new position in shares of Prospect Capital during the second quarter at a value of $35,000. HHM Wealth Advisors LLC bought a new position in shares of Prospect Capital during the second quarter at a value of $38,000. Running Point Capital Advisors LLC bought a new position in shares of Prospect Capital during the first quarter at a value of $83,000. Finally, Archer Investment Corp increased its position in Prospect Capital shares by 100.0% during the first quarter. Archer Investment Corp now owns 10,000 shares of the financial services provider worth $82,000 after buying an additional 5,000 shares during the period. 7.50% of the shares are currently held by hedge funds and other institutional investors.
Capital Price Performance Outlook
Shares of NASDAQ:PSEC traded down $0.16 in Friday’s midday session, hitting $6.73. The company had a trading volume of 52,493 shares, compared to an average volume of 1,576,195. Prospect Capital has a 12-month low of $6.66 and a 12-month high of $9.06. The company has a debt ratio of 0.66, a current ratio of 0.43 and a quick ratio of 0.43. The stock has a market capitalization of $2.66 billion, a price-earnings ratio of 4.75 and a beta of 0.87. The company’s 50-day simple moving average is $7.63 and its 200-day simple moving average is $7.69.
Prospect Capital (NASDAQ:PSEC – Get Rating) last released its quarterly results on Monday, August 29. The financial services provider reported EPS of $0.21 for the quarter, beating the consensus estimate of $0.19 by $0.02. The company posted revenue of $184.62 million in the quarter, compared to $179.74 million expected by analysts. Prospect Capital had a return on equity of 8.77% and a net margin of 80.95%. In the same quarter last year, the company earned $0.17 per share. On average, research analysts predict that Prospect Capital will post 0.96 earnings per share for the current year.
Prospect Capital announces dividend
The company also recently announced a monthly dividend, which will be paid on Thursday, November 17. Shareholders of record on Thursday, October 27 will receive a dividend of $0.06 per share. The ex-dividend date is Wednesday, October 26. This represents an annualized dividend of $0.72 and a yield of 10.70%. Prospect Capital’s dividend payout ratio (DPR) is 49.66%.
About Prospect Capital
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Prospect Capital Corporation is a business development company. She specializes in mid-market, mature, mezzanine financing, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnarounds, growth capital, development, capital expenditures. fixed assets and subordinated debt tranches of secured loan obligations, cash flow term loans, market placing loans and bridging transactions.
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