Prospect Capital - PSEC Stock Forecast, Price & News

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.

Wall Street Analyst Weigh In

Several research firms recently weighed in on PSEC. Wells Fargo & Company reduced their target price on Prospect Capital from $7.00 to $6.50 and set an "underweight" rating for the company in a report on Monday, April 25th. TheStreet lowered shares of Prospect Capital from a "b" rating to a "c+" rating in a research report on Tuesday, July 26th.

Prospect Capital Trading Up 1.0 %

Shares of PSEC traded up $0.08 during trading hours on Wednesday, hitting $8.02. 32,516 shares of the stock traded hands, compared to its average volume of 1,702,848. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.61. Prospect Capital has a 1-year low of $6.66 and a 1-year high of $9.06. The firm has a market capitalization of $3.15 billion, a PE ratio of 3.61 and a beta of 0.88. The business has a fifty day moving average of $7.36 and a 200-day moving average of $7.82.

Prospect Capital (NASDAQ:PSEC - Get Rating) last announced its quarterly earnings data on Monday, May 9th. The financial services provider reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.04. The business had revenue of $181.43 million for the quarter, compared to analyst estimates of $170.47 million. Prospect Capital had a net margin of 126.76% and a return on equity of 8.29%. Analysts expect that Prospect Capital will post 0.8 EPS for the current year.

Prospect Capital Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, September 21st. Investors of record on Monday, August 29th will be issued a $0.06 dividend. The ex-dividend date is Friday, August 26th. This represents a $0.72 dividend on an annualized basis and a yield of 8.98%. Prospect Capital's dividend payout ratio is presently 32.73%.