M. Grier Eliasek, the Chief Operating Officer of Prospect Capital Corporation (NASDAQ:PSEC), recorded a personal purchase of 942,800 shares of the company's common stock on February 11, 2026, according to a Form 4 filing submitted to the Securities and Exchange Commission. The shares were acquired at a per-share price of $2.9166, for a transaction value of approximately $2.75 million.
Following that purchase, Eliasek now holds 3,443,930.422 shares of Prospect Capital directly. The insider buying comes at a time when the company's stock has gained 9.47% over the last week, despite a 21.1% decline over the prior 12 months.
Prospect Capital continues to offer a large cash return to shareholders in the form of a stated dividend yield of 18.69%, equivalent to $0.54 per share, and has maintained dividend distributions for 23 consecutive years, based on InvestingPro data cited in the filing. At the same time, the company reports a negative earnings-per-share figure of -$0.78 and a current ratio of 0.74, metrics that point to ongoing profitability and liquidity challenges.
Separately, Priority Income Fund, Inc. announced plans to redeem half of its outstanding 6.000% Series J Term Preferred Stock due 2028. The fund intends to redeem 790,000 of the 1,580,000 outstanding Series J shares at $25 per share. The redemption will include accrued but unpaid dividends from December 31, 2025 through the redemption date of February 25, 2026.
In corporate governance developments, Prospect Capital Corporation has adjourned its annual meeting of stockholders to January 15, 2026. The company said the additional time is being used to solicit more shareholder votes for proposals contained in its definitive proxy statement. Earlier, the company had adjourned the meeting to January 8, 2026 to gather additional votes for a second proposal in the proxy statement, and it later extended the adjournment to January 15, 2026.
These disclosures together sketch a company balancing an insider purchase and a historically high dividend yield against recent earnings weakness and a below-1.0 current ratio. The filings also highlight related actions in the fund space through the Priority Income Fund redemption announcement and an ongoing effort by Prospect Capital to secure sufficient shareholder support for its proxy proposals.
Key points
- M. Grier Eliasek purchased 942,800 Prospect Capital shares at $2.9166 on February 11, 2026, worth roughly $2.75 million, raising his direct stake to 3,443,930.422 shares.
- PSEC stock has risen 9.47% over the past week but remains down 21.1% over the past year; the company reports an 18.69% dividend yield and has paid dividends for 23 consecutive years.
- Priority Income Fund plans to redeem 790,000 of its Series J preferred shares at $25 per share with accrued dividends payable through February 25, 2026, while Prospect Capital has adjourned its annual meeting to January 15, 2026 to solicit additional votes.
Risks and uncertainties
- Profitability risk - Prospect Capital reports a negative EPS of -$0.78, indicating earnings challenges that may affect future distributions.
- Liquidity risk - The company’s current ratio of 0.74 suggests short-term liquidity constraints that could impact operational flexibility and balance sheet management.
- Governance and voting uncertainty - The need to adjourn the annual meeting multiple times to solicit votes signals uncertainty in securing shareholder approval for proposals, which could delay strategic actions.