Wall Street Zen cut shares of Prospect Capital (NASDAQ:PSEC – Free Report) from a buy rating to a hold rating in a research note released on Saturday.
Other equities research analysts have also issued research reports about the stock. Wells Fargo & Company decreased their price target on shares of Prospect Capital from $2.50 to $2.00 and set an “underweight” rating for the company in a research note on Tuesday, May 12th. Weiss Ratings upgraded Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, May 29th. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the stock currently has an average rating of “Sell” and a consensus target price of $2.00.
View Our Latest Analysis on Prospect Capital
Prospect Capital Price Performance
Prospect Capital (NASDAQ:PSEC – Get Free Report) last announced its quarterly earnings data on Thursday, August 20th. The financial services provider reported $0.15 EPS for the quarter, topping the consensus estimate of $0.11 by $0.04. The business had revenue of $155.76 million for the quarter, compared to analyst estimates of $149.80 million. Prospect Capital had a net margin of 19.33% and a return on equity of 12.11%.
Prospect Capital Dividend Announcement
The company also recently disclosed a monthly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, October 28th will be paid a $0.035 dividend. This represents a c) dividend on an annualized basis and a yield of 18.0%. The ex-dividend date is Wednesday, October 28th. Prospect Capital’s payout ratio is currently -113.51%.
Insider Buying and Selling
In other Prospect Capital news, CEO John F. Barry bought 1,067,648 shares of the business’s stock in a transaction on Tuesday, June 23rd. The stock was purchased at an average price of $2.27 per share, for a total transaction of $2,423,560.96. Following the completion of the transaction, the chief executive officer directly owned 89,213,725 shares of the company’s stock, valued at $202,515,155.75. This trade represents a 1.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders have bought 2,500,648 shares of company stock worth $5,678,121 over the last quarter. 0.03% of the stock is owned by corporate insiders.
Institutional Trading of Prospect Capital
Several hedge funds and other institutional investors have recently modified their holdings of PSEC. Catalyst Financial Partners LLC bought a new position in Prospect Capital in the 4th quarter worth approximately $26,000. Ground Swell Capital LLC purchased a new position in Prospect Capital in the 4th quarter valued at approximately $28,000. Schonfeld Strategic Advisors LLC bought a new stake in Prospect Capital during the 4th quarter valued at $28,000. Evergreen Capital Management LLC bought a new stake in Prospect Capital during the 4th quarter valued at $30,000. Finally, Foundations Investment Advisors LLC bought a new stake in Prospect Capital during the 4th quarter valued at $31,000. Institutional investors own 9.06% of the company’s stock.
Prospect Capital News Roundup
Here are the key news stories impacting Prospect Capital this week:
- Positive Sentiment: PSEC reported net investment income of $0.15 per common share, exceeding the $0.11 analyst consensus, while quarterly revenue of $155.8 million also topped expectations of $149.8 million. The earnings beat is a near-term positive for the stock. Prospect Capital quarterly earnings report
- Positive Sentiment: The company maintained monthly distributions of $0.035 per share for September, October, and November, equating to an annualized yield of approximately 18.4% at the referenced share price. The payout remains a major attraction for income-oriented investors. Prospect Capital Announces June 2026 Results
- Positive Sentiment: Prospect reported $1.60 billion of cash and undrawn revolving credit capacity and subsequently closed the sale of Valley Electric for approximately $328 million, supporting liquidity and balance-sheet flexibility. Prospect Capital quarterly loss and NAV report
- Neutral Sentiment: Recent earnings-call coverage and the fiscal 2026 10-K provide additional detail on portfolio performance, credit quality, funding, and management’s plans; investors should review these disclosures for evidence that the dividend and NAV can be sustained. PSEC Q4 2026 earnings call transcript
- Negative Sentiment: PSEC posted a $38.1 million net loss, or $0.08 per share, as realized and unrealized investment losses totaled $83.8 million. NAV per share fell to $5.71 from $6.05 in the prior quarter, signaling material portfolio deterioration despite the operating-earnings beat. Prospect Capital NAV decline report
- Negative Sentiment: Analyst commentary warns that the unusually high yield may reflect credit, valuation, and dividend-sustainability risks rather than a simple bargain. Other coverage disputes the size of the reported NAV discount, underscoring uncertainty over the fair value of PSEC’s investments. Prospect Capital high-yield analysis
Prospect Capital Company Profile
Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.
Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.
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