1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (245) 

Insider Executives Buying Up Prospect Capital

September 13, 2011 | About:

Several C-level officers have been loading up on shares of Prospect Capital Corp. (NASDAQ:PSEC). The company is a mezzanine finance and private equity firm that specializes in the energy and industrial sectors.

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.

Rating: 3.6/5 (7 votes)


Please leave your comment:

GuruFocus has detected 6 Warning Signs with Prospect Capital Corp $PSEC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by matsandalex

User Generated Screeners

samahajoeBasic Materials
kpmoranManual of ideas
MauroTNCAV micro/nano
nghassanPenny Stocks
brucexrog jun 2017
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat