Prospect Capital (PSEC) Stock Price, News & Analysis

Company Overview

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. The firm’s lending strategies include first lien senior secured loans, second lien loans and mezzanine debt, while its opportunistic equity investments allow participation in potential upside. As an externally managed vehicle, Prospect Capital leverages the resources and investment capabilities of its advisor, Prospect Capital Management, L.P., to execute sourcing, underwriting and portfolio monitoring activities.

Headquartered in New York City, Prospect Capital serves U.S.-based businesses operating in a broad range of industries, including manufacturing, business services, healthcare, energy and technology. By targeting established companies with proven cash flows and experienced management teams, the firm seeks to deliver financing solutions that may not be readily available from traditional lenders, helping clients achieve strategic objectives and navigate transitional periods.

The company’s leadership is spearheaded by Joseph R. Idzfenco, President and Chief Executive Officer, who brings extensive experience in private credit and investment management. Under his direction, a seasoned investment team employs a disciplined underwriting process and active portfolio oversight to pursue stable, risk-adjusted returns for shareholders. Through deep industry relationships and a commitment to partnership, Prospect Capital aims to foster long-term value creation for both its investors and portfolio companies.

Key Stats

• Today's Range: $2.75 to $2.80
• 50-Day Range: $2.59 to $3.40
• 52-Week Range: $2.57 to $5.41
• Volume: 2.39 million shs
• Average Volume: 4.06 million shs
• Market Capitalization: $1.29 billion
• P/E Ratio: N/A
• Dividend Yield: 19.42%
• Price Target: $2.50
• Consensus Rating: Sell

Prospect Capital Stock Analysis - MarketRank™

Prospect Capital scored higher than 22% of companies evaluated by MarketBeat, and ranked 860th out of 925 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 0.9 / 5
• Analyst Rating: Sell

Consensus Rating

Prospect Capital has received a consensus rating of Sell. The company's average rating score is 1.00, and is based on no buy ratings, no hold ratings, and 2 sell ratings.

Downside Risk

Prospect Capital has a consensus price target of $2.50, representing about 10.1% downside from its current price of $2.78.

Amount of Analyst Coverage

Prospect Capital has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: N/A

Price to Earnings Ratio vs. the Market

The P/E ratio of Prospect Capital is -2.07, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Prospect Capital is -2.07, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Prospect Capital has a P/B Ratio of 0.42. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 0.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

9.69% of the float of Prospect Capital has been sold short.

Short Interest Ratio / Days to Cover

Prospect Capital has a short interest ratio ("days to cover") of 10.3, which indicates bearish sentiment.

Change versus previous month

Short interest in Prospect Capital has recently increased by 3.32%, indicating that investor sentiment is decreasing.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Prospect Capital is a leading dividend payer. It pays a dividend yield of 19.42%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Prospect Capital does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

9.69% of the float of Prospect Capital has been sold short.

Short Interest Ratio / Days to Cover

Prospect Capital has a short interest ratio ("days to cover") of 10.3, which indicates bearish sentiment.

Change versus previous month

Short interest in Prospect Capital has recently increased by 3.32%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 4.1 / 5
• News Sentiment: 1.36

News Sentiment

Prospect Capital has a news sentiment score of 1.36. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.67 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 11 news articles for Prospect Capital this week, compared to 6 articles on an average week.

Search Interest

75 people have searched for PSEC on MarketBeat in the last 30 days. This is an increase of 63% compared to the previous 30 days.

MarketBeat Follows

15 people have added Prospect Capital to their MarketBeat watchlist in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Acquiring Shares

Insider Buying vs. Insider Selling

In the past three months, Prospect Capital insiders have bought more of their company's stock than they have sold. Specifically, they have bought $7,485,119.00 in company stock and sold $0.00 in company stock.

Percentage Held by Insiders

27.98% of the stock of Prospect Capital is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

Only 9.06% of the stock of Prospect Capital is held by institutions.

PSEC Stock Analysis - Frequently Asked Questions

How have PSEC shares performed this year?

Prospect Capital's stock was trading at $4.31 at the beginning of the year. Since then, PSEC shares have decreased by 35.5% and is now trading at $2.78.

How were Prospect Capital's earnings last quarter?

Prospect Capital Corporation (NASDAQ:PSEC) posted its earnings results on Tuesday, August, 26th. The financial services provider reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.04. The financial services provider earned $166.95 million during the quarter, compared to analyst estimates of $167.08 million. Prospect Capital had a positive trailing twelve-month return on equity of 12.14% and a negative net margin of 69.68%.
Read the conference call transcript.

How do I buy shares of Prospect Capital?

Shares of PSEC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Prospect Capital own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Prospect Capital investors own include Chembio Diagnostics (CEMI), Rithm Capital (RITM), AT&T (T), Invesco QQQ (QQQ), Two Harbors Investments (TWO), NVIDIA (NVDA) and Calumet (CLMT).

Company Calendar

• Last Earnings: 8/26/2025
• Record date for 10/22 Dividend: 9/26/2025
• Ex-Dividend for 10/22 Dividend: 9/26/2025
• Today: 10/04/2025
• Dividend Payable: 10/22/2025
• Record date for 11/18 Dividend: 10/29/2025
• Ex-Dividend for 11/18 Dividend: 10/29/2025
• Next Earnings (Estimated): 11/06/2025
• Dividend Payable: 11/18/2025
• Fiscal Year End: 6/30/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: FIN - INVEST MGMT
• Sub-Industry: Asset Management & Custody Banks
• Current Symbol: NASDAQ:PSEC
• CIK: 1287032
• Web: www.prospectstreet.com
• Phone: (212) 448-0702
• Fax: 212-448-9652
• Employees: 2,019
• Year Founded: 2004

Price Target and Rating

• Average Price Target for Prospect Capital: $2.50
• High Price Target: $2.50
• Low Price Target: $2.50
• Potential Upside/Downside: -10.1%
• Consensus Rating: Sell
• Rating Score (0-4): 1.00
• Research Coverage: 2 Analysts

Profitability

• EPS (Trailing Twelve Months): ($1.34)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: N/A
• P/E Growth: N/A
• Net Income: -$469.92 million
• Net Margins: -69.68%
• Pretax Margin: -65.32%
• Return on Equity: 12.14%
• Return on Assets: 5.59%

Debt

• Debt-to-Equity Ratio: 0.70
• Current Ratio: 1.16
• Quick Ratio: 1.16

Sales & Book Value

• Annual Sales: -$406.94 million
• Price / Sales: -3.18
• Cash Flow: $1.03 per share
• Price / Cash Flow: 2.71
• Book Value: $6.56 per share
• Price / Book: 0.42

Miscellaneous

• Outstanding Shares: 465,087,000
• Free Float: 334,956,000
• Market Cap: $1.29 billion
• Optionable: Optionable
• Beta: 0.85