Prospect Capital Corporation (PSEC) Jumps 10% on Better Than Expected Earnings Report


Prospect Capital Corporation (NASDAQ:PSEC) stock is trading up 10.45% in the pre-market this morning after the company released their fourth quarter earnings after the market closed on Tuesday. Net investment income for the quarter came in at $100.9 million which equates to $0.28 per share, increasing by $9.7 million from the previous quarter. Wall Street had only been expecting $0.25 per share.

Additionally, Prospect Capital Corporation (NASDAQ:PSEC) declared a quarterly dividend of $0.0833 per share, which is unchanged.

“Since our IPO ten years ago through our April 2016 distribution, assuming our current share count for upcoming distributions, we will have distributed more than $14.62 per share to initial shareholders and over $1.85 billion in cumulative distributions to all shareholders,” the company explained in a release. “

The stock closed at $5.26 during the last trading session. It is down 28.63% since July 7, 2015 and is downtrending. It has underperformed the S&P500 by 19.16%.

From a total of 3 analysts covering Prospect Capital Corporation (NASDAQ:PSEC) stock, 1 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $10.50 while the lowest target price is $10. The mean of all analyst targets is $10.25 which is 94.87% above today’s ($5.26) stock price. Prospect Capital Corporation was the topic of 4 analyst reports since August 27, 2015 according to the firm StockzIntelligence Inc. National Securities initiated shares on January 29 with a “Neutral” rating.

The institutional sentiment decreased to 0.89 in Q2 2015. It’s down 0.13, from 1.02 in 2015Q2. The ratio fall, as 29 funds sold all their Prospect Capital Corporation shares they owned while 72 reduced their positions. 34 funds bought stakes while 56 increased their total positions. Institutions now own 45.71 million shares which is 6.47% less than the previous share count of 48.87 million in 2015Q2.

Muzinich & Co. Inc. holds 6.95% of its total portfolio in Prospect Capital Corporation, equating to 1.99 million shares. Messner & Smith Theme Value Investment Management Ltd Ca owns 382,701 shares representing 4.41% of their total US portfolio. Moreover, Cfo4life L.P. has 2.65% of their total portfolio invested in the company, equating to 349,518 shares. The Ohio-based Camelot Portfolios Llc has a total of 2.23% of their portfolio invested in the stock. Trust & Fiduciary Management Services Inc, a Massachusetts-based fund reported 411,407 shares owned.

Prospect Capital Corporation is a financial services company. The company has a market cap of $1.73 billion. The Firm is a non-diversified closed-end investment company. It has 6.55 P/E ratio. The Company’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.