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Actionable news in PSEC: Prospect Capital Corporation,

Prospect Capital: About That Barclays Note


Barclays is out with a cautious note on PSEC.

PSEC benefited from one-time gains of $0.04 per share last quarter from the sale of Harbortouch.

Without this, PSEC would have fallen short of estimates.

However, this really seems like a non-issue as PSEC has plenty of dry powder to invest.

A recent Barclays note suggested that Prospect Capital (NASDAQ:PSEC) may have trouble repeating its Q2 success. Analyst Mark DeVries noted that PSEC's sale of Harbortouch last quarter generated $0.04 per share in one-time items. Without this boost, NII would have been just $0.22 per share, versus $0.26 per share reported. In addition, without this extra income, PSEC would not have covered its quarterly dividend, which is currently at $0.25 per share (paid monthly at $0.0833). However, I feel folks are getting ahead of themselves regarding this issue.

PSEC data by YCharts

PSEC has plenty of dry powder to invest

For starters, PSEC got $322 million net from divesting Harbortouch. This cash, as well as a slowdown in originations...