The stock of Prospect Capital Corporation (NASDAQ: PSEC) has decreased by -0.62 when compared to last closing price of 5.48. Despite this, the company has experienced a -0.44% fall in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-27 that PSEC offers a monthly dividend distribution of $0.06/share that has not grown since 2017. There are better alternative BDCs out there offering superior portfolio investments that have better capitalized on the higher interest rate environment. Interest rates remain a threat to PSEC’s total Net Investment Income. Rate cuts are anticipated in the latter half of 2024 and can result in lower profitability metrics.
Is It Worth Investing in Prospect Capital Corporation (NASDAQ: PSEC) Right Now?
The 36-month beta value for PSEC is at 0.99. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for PSEC is 304.24M, and currently, shorts hold a 7.68% of that float. The average trading volume for PSEC on April 10, 2024 was 2.21M shares.
PSEC’s Market Performance
PSEC’s stock has seen a -0.44% decrease for the week, with a -1.16% drop in the past month and a -11.73% fall in the past quarter. The volatility ratio for the week is 0.88%, and the volatility levels for the past 30 days are at 1.40% for Prospect Capital Corporation The simple moving average for the last 20 days is -0.83% for PSEC stock, with a simple moving average of -7.84% for the last 200 days.
Analysts’ Opinion of PSEC
Wells Fargo, on the other hand, stated in their research note that they expect to see PSEC reach a price target of $4.50. The rating they have provided for PSEC stocks is “Underweight” according to the report published on June 25th, 2020.
PSEC Trading at -2.51% from the 50-Day Moving Average
After a stumble in the market that brought PSEC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.09% of loss for the given period.
Volatility was left at 1.40%, however, over the last 30 days, the volatility rate increased by 0.88%, as shares sank -2.07% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.61% lower at present.
During the last 5 trading sessions, PSEC fell by -0.46%, which changed the moving average for the period of 200-days by -10.74% in comparison to the 20-day moving average, which settled at $5.49. In addition, Prospect Capital Corporation saw -9.08% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PSEC starting from Van Dask Kristin Lea, who purchase 5,000 shares at the price of $5.44 back on Mar 11 ’24. After this action, Van Dask Kristin Lea now owns 10,000 shares of Prospect Capital Corporation, valued at $27,200 using the latest closing price.
Eliasek M Grier, the Chief Operating Officer of Prospect Capital Corporation, purchase 10,000 shares at $5.67 during a trade that took place back on Dec 06 ’23, which means that Eliasek M Grier is holding 1,616,130 shares at $56,700 based on the most recent closing price.
Stock Fundamentals for PSEC
Current profitability levels for the company are sitting at:
- 0.27 for the present operating margin
- 0.01 for the gross margin
The net margin for Prospect Capital Corporation stands at 0.02. The total capital return value is set at 0.02.
Based on Prospect Capital Corporation (PSEC), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 0.06. The debt to equity ratio resting at 0.71. The interest coverage ratio of the stock is 0.8.
Currently, EBITDA for the company is -101.64 million with net debt to EBITDA at 19.41. When we switch over and look at the enterprise to sales, we see a ratio of 10.23. The receivables turnover for the company is 12.14for trailing twelve months and the total asset turnover is 0.06.
Conclusion
In conclusion, Prospect Capital Corporation (PSEC) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
