Stock Traders Buy Large Volume of Put Options on Prospect Capital (PSEC)
Prospect Capital Co. (NASDAQ:PSEC) was the recipient of some unusual options trading activity on Tuesday. Investors acquired 10,423 put options on the company. This is an increase of 1,565% compared to the typical daily volume of 626 put options.
Prospect Capital (NASDAQ:PSEC) opened at $6.77 on Friday. Prospect Capital has a 12-month low of $5.51 and a 12-month high of $9.58. The company has a debt-to-equity ratio of 0.73, a quick ratio of 2.63 and a current ratio of 4.32. The company has a market cap of $2,540.00, a price-to-earnings ratio of 11.88 and a beta of 0.48.
Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Wednesday, February 7th. The financial services provider reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.02. Prospect Capital had a net margin of 31.02% and a return on equity of 8.36%. The business had revenue of $162.40 million for the quarter, compared to analysts’ expectations of $153.94 million. During the same period in the previous year, the company posted $0.28 earnings per share. The business’s revenue for the quarter was down 11.5% compared to the same quarter last year. research analysts anticipate that Prospect Capital will post 0.72 EPS for the current year.
In other Prospect Capital news, insider M Grier Eliasek purchased 65,000 shares of Prospect Capital stock in a transaction on Monday, November 13th. The shares were purchased at an average cost of $5.96 per share, with a total value of $387,400.00. Following the completion of the transaction, the insider now directly owns 1,002,196 shares in the company, valued at approximately $5,973,088.16. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider John F. Barry purchased 162,826 shares of Prospect Capital stock in a transaction on Wednesday, November 22nd. The shares were acquired at an average cost of $6.72 per share, for a total transaction of $1,094,190.72. Following the completion of the transaction, the insider now owns 26,425,625 shares of the company’s stock, valued at $177,580,200. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 4,504,521 shares of company stock worth $31,215,551. 7.10% of the stock is currently owned by corporate insiders.
Several large investors have recently modified their holdings of PSEC. Arrowstreet Capital Limited Partnership bought a new stake in shares of Prospect Capital in the second quarter worth $7,697,000. Penn Mutual Life Insurance Co bought a new stake in shares of Prospect Capital in the third quarter worth $3,992,000. Cowen Inc. increased its stake in shares of Prospect Capital by 200.0% in the third quarter. Cowen Inc. now owns 248,000 shares of the financial services provider’s stock worth $1,667,000 after buying an additional 496,000 shares during the last quarter. Advisory Research Inc. bought a new stake in shares of Prospect Capital in the fourth quarter worth $2,680,000. Finally, Sumitomo Mitsui Asset Management Company LTD bought a new stake in shares of Prospect Capital in the fourth quarter worth $2,544,000. Institutional investors and hedge funds own 14.76% of the company’s stock.
PSEC has been the topic of a number of recent research reports. Zacks Investment Research cut shares of Prospect Capital from a “hold” rating to a “sell” rating in a research report on Saturday, November 11th. National Securities reduced their target price on shares of Prospect Capital from $5.00 to $4.00 and set a “sell” rating on the stock in a research report on Tuesday, November 14th. ValuEngine raised shares of Prospect Capital from a “buy” rating to a “strong-buy” rating in a research report on Friday, December 22nd. BidaskClub raised shares of Prospect Capital from a “hold” rating to a “buy” rating in a research report on Friday, December 22nd. Finally, BMO Capital Markets reissued a “hold” rating and set a $7.00 target price on shares of Prospect Capital in a research report on Monday, January 8th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and one has given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $6.81.
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Prospect Capital Company Profile
Prospect Capital Corporation is a financial services company. The Company primarily lends to and invests in middle market privately held companies. The Company is a closed-end investment company. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
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