$156.47 Million in Sales Expected for Prospect Capital Co. (PSEC) This Quarter

Equities analysts expect Prospect Capital Co. (NASDAQ:PSEC) to post $156.47 million in sales for the current fiscal quarter, Zacks reports. Two analysts have issued estimates for Prospect Capital’s earnings. The highest sales estimate is $162.36 million and the lowest is $150.57 million. Prospect Capital reported sales of $166.70 million during the same quarter last year, which would suggest a negative year over year growth rate of 6.1%. The business is expected to report its next quarterly earnings results on Monday, August 27th.

According to Zacks, analysts expect that Prospect Capital will report full year sales of $634.09 million for the current fiscal year, with estimates ranging from $622.00 million to $646.18 million. For the next fiscal year, analysts anticipate that the company will post sales of $625.17 million per share, with estimates ranging from $602.00 million to $648.34 million. Zacks Investment Research’s sales averages are an average based on a survey of research firms that that provide coverage for Prospect Capital.

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Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings results on Wednesday, May 9th. The financial services provider reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.01. Prospect Capital had a return on equity of 8.31% and a net margin of 36.39%. The company had revenue of $162.84 million for the quarter, compared to analysts’ expectations of $153.08 million. During the same period last year, the firm earned $0.20 EPS. The firm’s revenue for the quarter was down 4.8% on a year-over-year basis.

Several brokerages have recently issued reports on PSEC. BidaskClub upgraded Prospect Capital from a “sell” rating to a “hold” rating in a research report on Wednesday, March 21st. ValuEngine cut Prospect Capital from a “buy” rating to a “hold” rating in a research report on Wednesday, May 2nd. National Securities reiterated a “sell” rating and set a $4.00 price target on shares of Prospect Capital in a research report on Monday, May 14th. Finally, Zacks Investment Research upgraded Prospect Capital from a “hold” rating to a “buy” rating and set a $7.50 price target on the stock in a research report on Tuesday, May 15th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $6.17.

Shares of Prospect Capital traded down $0.03, hitting $6.83, during mid-day trading on Friday, MarketBeat reports. 1,281,579 shares of the stock traded hands, compared to its average volume of 1,525,604. Prospect Capital has a twelve month low of $5.51 and a twelve month high of $8.40. The stock has a market cap of $2.48 billion, a PE ratio of 8.04 and a beta of 0.43. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.99 and a current ratio of 0.99.

The business also recently disclosed a monthly dividend, which will be paid on Thursday, September 20th. Stockholders of record on Friday, August 31st will be paid a dividend of $0.06 per share. This represents a $0.72 annualized dividend and a dividend yield of 10.54%. The ex-dividend date is Thursday, August 30th. Prospect Capital’s dividend payout ratio is presently 84.71%.

In related news, insider John F. Barry acquired 269,197 shares of Prospect Capital stock in a transaction dated Wednesday, February 28th. The stock was acquired at an average cost of $6.63 per share, with a total value of $1,784,776.11. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider John F. Barry acquired 4,483 shares of Prospect Capital stock in a transaction dated Wednesday, March 21st. The shares were bought at an average cost of $6.50 per share, with a total value of $29,139.50. Following the completion of the purchase, the insider now owns 34,413,790 shares in the company, valued at $223,689,635. The disclosure for this purchase can be found here. Over the last three months, insiders have bought 443,224 shares of company stock valued at $2,915,694. Corporate insiders own 7.10% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sumitomo Mitsui Asset Management Company LTD bought a new stake in shares of Prospect Capital during the 4th quarter worth $2,544,000. Virtu Financial LLC boosted its stake in shares of Prospect Capital by 302.9% during the 4th quarter. Virtu Financial LLC now owns 294,330 shares of the financial services provider’s stock worth $1,984,000 after acquiring an additional 221,274 shares in the last quarter. Eqis Capital Management Inc. boosted its stake in shares of Prospect Capital by 266.2% during the 4th quarter. Eqis Capital Management Inc. now owns 438,826 shares of the financial services provider’s stock worth $2,958,000 after acquiring an additional 319,001 shares in the last quarter. Prime Capital Investment Advisors LLC bought a new stake in shares of Prospect Capital during the 4th quarter worth $130,000. Finally, Aperio Group LLC boosted its stake in shares of Prospect Capital by 51.6% during the 4th quarter. Aperio Group LLC now owns 62,741 shares of the financial services provider’s stock worth $423,000 after acquiring an additional 21,357 shares in the last quarter. 12.73% of the stock is owned by institutional investors and hedge funds.

About Prospect Capital

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, buyouts, recapitalizations, turnaround, growth capital, development, subordinated debt tranches of collateralized loan obligations, cash flow term loans, and bridge transactions.

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3 Healthcare Stocks That Are Undeniably Dirt Cheap Right Now

Even in the midst of a market that many view as overpriced, inexpensive stocks can be found. One valuation metric that I like to use to find these potential bargains is the enterprise value-to-EBITDA ratio.

The first component of this metric -- enterprise value (EV) -- is calculated by adding market cap plus debt, minority interest, and preferred shares, then subtracting total cash and cash equivalents. EV represents what it would actually cost to buy a company outright, which makes it more useful than just market cap or stock price.

The second component of the metric is EBITDA -- earnings before interest, taxes, depreciation, and amortization. One advantage to using EBITDA instead of net income is that it isn't affected by how a company finances its balance sheet (for example, through debt, issuing equity, or both).

A low EV-to-EBITDA measurement is a pretty good indicator that a stock is relatively cheap. And there are three healthcare stocks that are undeniably dirt cheap right now based on the metric: United Therapeutics (NASDAQ:UTHR), Gilead Sciences (NASDAQ:GILD), and Humana (NYSE:HUM). But are these cheap stocks smart picks to buy?

Image source: Getty Images.

1. United Therapeutics

United Therapeutics claims a super-low EV-to-EBITDA ratio of 3.98. You won't find many stocks that are less expensive using the metric. But why is the biotech so cheaply priced?

A lot of United Therapeutics' low valuation stems from the threats the company faces from generic competition. Pulmonary arterial hypertension (PAH) drugs Remodulin and Adcirca generated $671 million and $420 million in sales, respectively, in 2017. Revenue from these drugs will probably fall with generic versions�likely to reach the market this summer.�

The biotech does have three other approved drugs -- Tyvaso, Orenitram, and Unituxin. However, these drugs combined contributed less than 37% of United Therapeutics' total revenue last year. Also, the patents for Tyvaso are being challenged by a leading generic-drug maker.�

United Therapeutics' pipeline includes seven candidates that could win approval over the next three years. Five of these candidates are new formulations or combinations of the company's existing drugs. It remains to be seen if these drugs can turn things around for United Therapeutics.��

2. Gilead Sciences

Gilead Sciences' EV-to-EBITDA ratio currently stands at 6.39. This value is well below that of other big biotechs in Gilead's peer group. As is the case with United Therapeutics, though, there's an easily identifiable reason behind Gilead's low valuation.

For Gilead, that reason is sinking hepatitis C virus (HCV) product sales. The biotech once enjoyed staggering growth, thanks to its HCV franchise. Gilead is largely a victim of its own success, though. So many patients were cured that there are fewer patients remaining who need treatment. In addition, Gilead now has a formidable rival in the HCV market with AbbVie.

Despite these HCV woes, however, there are several reasons to think that the future could be brighter for Gilead. The biotech's management team thinks that HCV sales will stabilize. Gilead recently launched new HIV drug Biktarvy, which is practically a sure bet for becoming a megablockbuster success.�

The company's pipeline could also help Gilead's fortunes improve in the not-too-distant future. Two candidates that especially stand out are selonsertib, which targets treatment of non-alcoholic steatohepatitis (NASH), and autoimmune disease drug filgotinib.�

3. Humana

Humana claims an EV-to-EBITDA ratio of 6.97. The big health insurer's main rivals are much more expensive. The primary reason behind Humana's relatively low valuation can be found on its balance sheet.

While Humana's market cap is around $40 billion, the company's enterprise value is less than $26 billion. Why this big gap? Humana's cash stockpile, including cash, cash equivalents, and marketable securities, totaled $18.6 billion at the end of the first quarter. The company's total debt was only $5.3 billion.

At least one deep-pocketed investor seems to find Humana's valuation attractive. The Wall Street Journal reported last month that Walmart�was in early talks about acquiring Humana. There are several reasons the huge retail company could be interested in moving into health insurance. So far, though, no final deal has been announced.

Even if Walmart doesn't buy Humana, the health insurer appears to be in solid shape. Humana's Medicare Advantage business is booming. After posting great Q1 results earlier this month, the company upped its full-year 2018 earnings guidance.��

But are they buys?

Just because something is cheap doesn't mean you should buy it. Sometimes, the low valuation should instead be a warning sign to stay away.

I think that's the case with one of these stocks. United Therapeutics faces huge challenges that I suspect will cause its stock to drop even more.�However, my view is that it's a different story for Gilead Sciences and Humana.

The ingredients are there for Gilead to make a comeback. I think that stabilization in the company's HCV sales is a matter of when -- rather than if. I like the prospects for Biktarvy and for Gilead's pipeline.�I also like Humana's position in the marketplace. An acquisition by Walmart seems like a smart move in my opinion.�

All three of these healthcare stocks are cheap for a reason. But I predict that Gilead and Humana will only be cheap for a season.

Trader-Based Social Network TradingView Raises $37 Million In Series B Funding

TradingView, winner of Best Analysis Tool at Benzinga’s 2017 Fintech Awards, announced Monday that it closed a $37-million round of Series B financing meant to expand its software suite and international reach.

The seven-year-old company operates one of the market’s largest financial and social platforms meant to democratize trading among self-directed investors.

With more cash on hand, TradingView intends to expand over the next six to 12 months by:

Moving its headquarters to the financial hub of New York; Expanding charting and analytics data with the potential addition of options; Adding more U.S. and international brokers, such as Robinhood, E*TRADE Financial Corp (NADSAQ: ETFC) and TD Ameritrade Holding Corp. (NASDAQ: AMTD); Incorporating big crypto exchanges; and Building out mobile and app platforms.

It also plans to improve international interactions.

"There's a lot of things to be done in terms of visibility in each region," TradingView COO Stan Bokov told Benzinga. "China is huge in the trading world, and it requires Weibo, QQ and Alipay integrations, etc. so we'll be focusing a lot on local needs, what kind of news they need, data, experience, pricing, etc."

TradingView's products appeal largely to millennials but also support institutional clients such as CME Group, Investopedia, Zacks and national exchanges.

"TradingView has clearly emerged as the preeminent charting platform and social network for active traders," Peter Johnson, vice president at Jump Capital, said in a press release. "Their tools have become an invaluable resource to the trading community, as demonstrated by their rapid growth to over 8 million monthly users and integrations into thousands of leading exchanges and financial applications."

In its early days, TradingView got a boost from TechStars Chicago and secured $3.7 million from TechStars, Irish Angels, iTech Capital and other angel investors. Its latest round of financing was led by Insight Venture Partners with contributions from Jump Capital and DRW Venture Capital.

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Photo courtesy of TradingView.

Qatari Lender Closes Gap on Abu Dhabi Rival in Mideast Shuffle

Qatar National Bank QPSC is no longer being punished for a boycott imposed on the country by some of its neighbors as this month’s MSCI Inc. weighting change draws passive inflows to the stock.

A 36 percent rally spurred by the decision to raise the foreign ownership limit in March means QNB now trades at a similar valuation to First Abu Dhabi Bank PJSC for the first time in more than a year. FAB had become one of the shares of choice in the United Arab Emirates after a deal that created the country’s biggest lender last year.

The estimated price-to-earnings ratio for the Emirati bank has slipped to 10.3, matching the level for QNB, the dominant stock in Qatar’s benchmark index.

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QNB and FAB are “the two biggest single security index trades” for 2018 in the Middle East and North Africa, according to Mohamad Al Hajj, an equities strategist at the research arm of EFG-Hermes Holding in Dubai.

The Qatari lender could lure inflows of $651 million after the index re-balancing, which was triggered by the country increasing the maximum foreigners can hold to 49 percent, he estimates. FAB could attract more than $300 million in passive flows after a review of its weighting in the same index, expected to be announced in November, he said.

The Abu-Dhabi based bank is the result of the merger of First Gulf Bank PJSC and National Bank of Abu Dhabi PJSC, which at completion had created a financial giant with $180 billion in assets under management.

The Emirati lender remains an interesting play following the stock’s recent dip, especially considering the “value that will be generated by the merger,” said Ali El Adou, the head of asset management at Daman Investments in Dubai.

FAB rose 4.3 percent, the most in more than a year, at the close in Abu Dhabi on Wednesday, while QNB slipped 0.1 percent in Doha. They have a market valuation of $36 billion and $40 billion, respectively.

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Sell Apollo Hospitals, target Rs 890: Vinay Rajani

Vinay Rajani

The pharma and healthcare sector has been underperforming for the last 3 years and the Nifty Pharma index has reached its new 52-week low recently.

Apollo Hospitals has also been showing weakness on the short to medium term charts. On the weekly charts, the stock has confirmed breakdown from its bearish head and shoulder pattern.

The stock is currently trading below 50, 100 and 200-DMA, indicating a bearish trend on all time frames. Oscillators like RSI, MACD, and DMI have been showing weakness on the charts.

We recommend selling Apollo Hospitals for the downside target of Rs 890, and keeping a stop loss above Rs 1,050.

Disclaimer: The author is Technical Analyst, PCG Desk, HDFC Securities. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Insider Selling: Reliant Bancorp (RBNC) Director Sells $73,260.00 in Stock

Reliant Bancorp (NASDAQ:RBNC) Director William Ronald Deberry sold 3,000 shares of the business’s stock in a transaction dated Wednesday, May 16th. The shares were sold at an average price of $24.42, for a total transaction of $73,260.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

William Ronald Deberry also recently made the following trade(s):

Get Reliant Bancorp alerts: On Friday, May 18th, William Ronald Deberry sold 1,085 shares of Reliant Bancorp stock. The stock was sold at an average price of $25.00, for a total transaction of $27,125.00.

NASDAQ RBNC traded up $0.14 on Friday, hitting $25.13. The stock had a trading volume of 10,929 shares, compared to its average volume of 8,291. Reliant Bancorp has a one year low of $21.42 and a one year high of $27.49. The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 0.06. The stock has a market cap of $288.52 million, a price-to-earnings ratio of 22.44 and a beta of 0.32.

Reliant Bancorp (NASDAQ:RBNC) last posted its earnings results on Thursday, April 26th. The bank reported $0.33 EPS for the quarter. Reliant Bancorp had a net margin of 16.11% and a return on equity of 7.04%. The firm had revenue of $16.37 million during the quarter.

The company also recently announced a quarterly dividend, which was paid on Friday, April 20th. Shareholders of record on Tuesday, April 10th were given a $0.08 dividend. This is a boost from Reliant Bancorp’s previous quarterly dividend of $0.06. The ex-dividend date was Monday, April 9th. This represents a $0.32 annualized dividend and a yield of 1.27%.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Patten Group Inc. grew its position in Reliant Bancorp by 30.4% in the 1st quarter. Patten Group Inc. now owns 10,729 shares of the bank’s stock worth $245,000 after purchasing an additional 2,502 shares during the last quarter. American International Group Inc. bought a new position in Reliant Bancorp in the 1st quarter worth about $101,000. New York State Common Retirement Fund bought a new position in Reliant Bancorp in the 1st quarter worth about $169,000. California State Teachers Retirement System bought a new position in Reliant Bancorp in the 1st quarter worth about $241,000. Finally, Schwab Charles Investment Management Inc. bought a new position in Reliant Bancorp in the 1st quarter worth about $267,000. Hedge funds and other institutional investors own 22.10% of the company’s stock.

About Reliant Bancorp

Reliant Bancorp, Inc operates as the holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Its deposit products include checking, savings, and money market deposit accounts; time deposits; certificates of deposit; and non-interest-bearing and interest bearing demand deposits.