NEW YORK—M. Grier Eliasek, the Chief Operating Officer of Prospect Capital Corp (NASDAQ:PSEC), recently made a significant purchase of the company's stock. According to a filing with the Securities and Exchange Commission, Eliasek acquired a total of 5,000 shares of Prospect Capital common stock on November 14. The shares were bought at prices ranging from $4.30 to $4.33 per share, amounting to a total investment of $21,635.
Following these transactions, Eliasek now directly owns approximately 1,671,130 shares of Prospect Capital. This acquisition reflects continued confidence in the company's prospects by one of its top executives. Prospect Capital, a business development company, is headquartered in New York and engages in lending and investing in privately held middle-market companies.
In other recent news, Prospect Capital Corporation has been making strategic moves that have been garnering attention. The company has increased its preferred stock offering from $2 billion to $2.25 billion, a decision that involved reclassifying 20 million shares from common to preferred stock. This initiative has been accompanied by a revised expectation from Wells Fargo (NYSE:WFC), which has downgraded its price target for Prospect Capital from $5.00 to $4.50.
The company has also reported strong earnings for the fourth quarter of fiscal year 2024, with a net investment income of $102.9 million and a net asset value of $3.71 billion. This showcases the company's strong balance sheet, diversified funding sources, and significant liquidity.
On the other hand, Wells Fargo has updated its net operating income (NOI) forecasts for Prospect Capital for fiscal years 2025 and 2026, marking a decrease from the earlier predictions. Despite these adjustments, analysts have noted Prospect Capital's ability to tap into the unsecured term debt market to extend liability duration and reduce counterparty risk.
These recent developments indicate that Prospect Capital is making strategic decisions to maintain shareholder distributions and strengthen its investment portfolio.
InvestingPro Insights
While M. Grier Eliasek's recent stock purchase demonstrates confidence in Prospect Capital Corp (NASDAQ:PSEC), investors should consider additional financial metrics and expert insights when evaluating the company. According to InvestingPro data, PSEC currently has a market capitalization of $1.96 billion and offers a substantial dividend yield of 12.22%, which aligns with an InvestingPro Tip noting that the company "pays a significant dividend to shareholders."
However, PSEC's financial health presents a mixed picture. The company's revenue for the last twelve months as of Q1 2025 stood at $821.73 million, with a concerning year-over-year decline of 7.23%. This decline is further emphasized by another InvestingPro Tip, which points out that the "stock has fared poorly over the last month," with a one-month price total return of -15.65%.
Despite these challenges, it's worth noting that PSEC has maintained dividend payments for 21 consecutive years, as highlighted by another InvestingPro Tip. This long-standing commitment to shareholder returns may be a factor in Eliasek's decision to increase his stake in the company.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 7 more tips for PSEC, providing a deeper understanding of the company's financial position and market performance.
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