Prospect Capital (PSEC) Stock Price, News & Analysis

Company Overview

Prospect Capital Corporation is a business development company that provides financing to privately held, middle-market companies. The company primarily invests in first-lien and second-lien loans, subordinated debt, and other debt and equity securities. Its investments are designed to support acquisitions, recapitalizations, growth initiatives, refinancings, and other corporate purposes.

Through its investment platform, Prospect Capital also participates in specialized finance and structured investment activities, including investments in real estate-related assets and other operating businesses. The company typically seeks to invest in established companies across a range of industries rather than focusing on a single sector.

Prospect Capital was founded in 2004 and operates primarily in the United States. It is externally managed by Prospect Capital Management LLC and has elected to be regulated as a business development company under the Investment Company Act of 1940. Its shares trade on the Nasdaq Stock Market under the symbol PSEC.

Key Stats

• Today's Range: $1.72 to $1.83
• 50-Day Range: $1.72 to $2.35
• 52-Week Range: $1.72 to $3.13
• Volume: 6.93 million shs
• Average Volume: 6.00 million shs
• Market Capitalization: $918.17 million
• P/E Ratio: 34.40
• Dividend Yield: 24.42%
• Price Target: $2.00
• Consensus Rating: Sell

Prospect Capital Stock Analysis - MarketRank™

Prospect Capital scored higher than 79% of companies evaluated by MarketBeat, and ranked 372nd out of 853 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: 2.4 / 5
• Analyst Rating: Sell

Consensus Rating

Prospect Capital has received a consensus rating of Sell. The company's average rating score is 1.33, and is based on no strong buy ratings, no buy ratings, 1 hold rating, and 2 sell ratings.

Upside Potential

Prospect Capital has a consensus price target of $2.00, representing about 16.3% upside from its current price of $1.72.

Amount of Analyst Coverage

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

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -7.89%

Earnings Growth

Earnings for Prospect Capital are expected to decrease by -7.89% in the coming year, from $0.38 to $0.35 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Prospect Capital is 34.40, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 39.03.

Price to Earnings Ratio vs. Sector

The P/E ratio of Prospect Capital is 34.40, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 24.74.

Price to Book Value per Share Ratio

Prospect Capital has a P/B Ratio of 0.29. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

4.57% 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 3.25, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Prospect Capital has recently decreased by 12.06%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Prospect Capital is a leading dividend payer. It pays a dividend yield of 23.08%, 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.

Dividend Coverage

The dividend payout ratio of Prospect Capital is 840.00%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Prospect Capital will have a dividend payout ratio of 120.00% in the coming year. This indicates that Prospect Capital may not be able to sustain their current dividend.

News and Social Media

• Score: 3.0 / 5
• News Sentiment: 0.76

News Sentiment

Prospect Capital has a news sentiment score of 0.76. 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 0.59 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 7 news articles for Prospect Capital this week, compared to 4 articles on an average week.

Search Interest

Only 17 people have searched for PSEC on MarketBeat in the last 30 days. This is a decrease of -48% compared to the previous 30 days.

MarketBeat Follows

Only 8 people have added Prospect Capital to their MarketBeat watchlist in the last 30 days. This is a decrease of -27% compared to the previous 30 days.

Company Ownership

• Score: 3.7 / 5
• Insider Trading: Acquiring Shares

Net Insider Buying

Over the last three months, insiders have purchased a net $2,726,315.00 in company stock, which represents 0.2969% of the company's market cap.

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 $2,726,315.00 in company stock and sold $0.00 in company stock.

Percentage Held by Insiders

25.94% 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

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

Company Calendar

• Last Earnings: 8/20/2026
• Record date for 10/21 Dividend: 9/28/2026
• Ex-Dividend for 10/21 Dividend: 9/28/2026
• Today: 10/10/2026
• Dividend Payable: 10/21/2026
• Record date for 11/18 Dividend: 10/28/2026
• Ex-Dividend for 11/18 Dividend: 10/28/2026
• Next Earnings (Estimated): 11/05/2026
• Dividend Payable: 11/18/2026
• Fiscal Year End: 6/30/2027

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: Capital Markets
• 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: $2.00
• High Price Target: $2.00
• Low Price Target: $2.00
• Potential Upside/Downside: +16.3%
• Consensus Rating: Sell
• Rating Score (0-4): 1.33
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.05
• Trailing P/E Ratio: 34.40
• Forward P/E Ratio: 4.53
• P/E Growth: N/A
• Net Income: $153.66 million
• Net Margins: 19.33%
• Pretax Margin: 24.03%
• Return on Equity: 12.15%
• Return on Assets: 5.54%

Debt

• Debt-to-Equity Ratio: 0.64
• Current Ratio: 0.87
• Quick Ratio: 0.87

Sales & Book Value

• Annual Sales: $639.45 million
• Price / Sales: 1.44
• Cash Flow: $0.86 per share
• Price / Cash Flow: 2.01
• Book Value: $5.85 per share
• Price / Book: 0.29

Miscellaneous

• Outstanding Shares: 533,820,000
• Free Float: 395,345,000
• Market Cap: $918.17 million
• Optionable: Optionable
• Beta: 0.82