Insider Executives Buying Up Prospect Capital
Over the last few weeks, executives have accumulated over $3 million worth of PSEC shares. The most interesting was the purchase by CFO Brian Oswald of 7,000 shares on August 31 for $8.69 per share. Oswald previously bought 7,000 shares in late May at $11.44.
When a company is engaged in several complicated financings, investors have to largely trust management. When a CFO buys shares of a financial services company, it is comforting for shareholders who often cannot understand the numbers behind the numbers.
PSEC offers a massive 14.3% dividend and the shares have been battered by over 30% in the summer sell-off.
The company also announced on August 25 that it had authorization to buy back up to $100 million in stock which is significant considering that the market cap is only $920 million.