BofA: Investors pour into bonds, pull back from crypto
John Barry, the CEO of Prospect Capital Corp (NASDAQ:PSEC), recently purchased 24,000 shares of the company’s common stock. The transaction, dated March 20, 2025, was executed at an average price of $4.2778 per share, amounting to a total investment of $102,667. The purchase comes as PSEC trades near its 52-week low of $4.09, with the stock down about 18% over the past six months. According to InvestingPro, the company maintains an impressive 12.8% dividend yield. Following this acquisition, Barry holds over 82.5 million shares directly. Additionally, 342,447 shares are indirectly owned by his spouse. This move reflects continued confidence in the company’s prospects by its top executive, despite recent challenges including declining revenues (-9.9% year-over-year) and current liquidity concerns. InvestingPro analysis reveals 5 additional key factors affecting PSEC’s outlook, including its 22-year track record of consistent dividend payments.
In other recent news, Prospect Capital Corporation reported its fourth-quarter 2024 earnings, revealing a significant miss with earnings per share (EPS) of -$0.07, falling short of the forecasted $0.14. The company’s revenue also did not meet expectations, coming in at $185.5 million compared to the anticipated $197.7 million. Despite these results, the company maintained a strong net investment income of $86.4 million, or $0.20 per share, underscoring its ability to generate income even amid broader earnings challenges. Prospect Capital’s portfolio strategy remains focused on first lien debt, which now comprises 64.9% of its holdings, an increase of 620 basis points from the previous year. The company’s executives emphasized their continued strategy of rotating assets into first lien senior secured middle market loans, aiming to capitalize on value-add capital expenditures. Analysts from Wells Fargo (NYSE:WFC) inquired about the company’s unsecured debt strategy, with executives noting their diversified financing approach remains flexible to adapt to changing market conditions. Additionally, the company has announced monthly shareholder distributions, reflecting its ongoing commitment to returning value to shareholders. Prospect Capital’s management highlighted their long-standing role in pioneering various financing methods within the industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.