The stock of Prospect Capital Corp (NASDAQ: PSEC) has increased by 0.55 when compared to last closing price of 5.44. Despite this, the company has experienced a 1.30% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-15 that Prospect Capital offers a remarkable 13% yield, supported by strong balance sheet quality and a well-performing investment portfolio. The BDC’s favorable non-accrual trend and healthy dividend coverage profile make it an attractive buy for dividend investors. Despite a near-40% discount to NAV, Prospect Capital’s dividend is well-supported,.
Is It Worth Investing in Prospect Capital Corp (NASDAQ: PSEC) Right Now?
The price-to-earnings ratio for Prospect Capital Corp (NASDAQ: PSEC) is 16.09x, which is above its average ratio. Moreover, the 36-month beta value for PSEC is 0.99. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 3 as “hold,” and 0 as “sell.”
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The public float for PSEC is 315.62M and currently, short sellers hold a 6.79% of that float. On September 25, 2024, PSEC’s average trading volume was 2.67M shares.
PSEC’s Market Performance
PSEC’s stock has seen a 1.30% increase for the week, with a 7.68% rise in the past month and a -2.15% fall in the past quarter. The volatility ratio for the week is 1.98%, and the volatility levels for the past 30 days are at 2.28% for Prospect Capital Corp The simple moving average for the past 20 days is 3.41% for PSEC’s stock, with a -1.56% simple moving average for the past 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 3.97% 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 -13.17% of loss for the given period.
Volatility was left at 2.28%, however, over the last 30 days, the volatility rate increased by 1.98%, as shares surge +9.62% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.32% lower at present.
During the last 5 trading sessions, PSEC rose by +1.30%, which changed the moving average for the period of 200-days by -2.84% in comparison to the 20-day moving average, which settled at $5.31. In addition, Prospect Capital Corp saw -8.68% 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 Stark Eugene S, who purchase 2,500 shares at the price of $5.50 back on Sep 17 ’24. After this action, Stark Eugene S now owns 57,500 shares of Prospect Capital Corp, valued at $13,750 using the latest closing price.
Eliasek M Grier, the Chief Operating Officer of Prospect Capital Corp, purchase 5,000 shares at $5.50 during a trade that took place back on Sep 16 ’24, which means that Eliasek M Grier is holding 1,666,130 shares at $27,500 based on the most recent closing price.
Stock Fundamentals for PSEC
Current profitability levels for the company are sitting at:
- 0.95 for the present operating margin
- 0.47 for the gross margin
The net margin for Prospect Capital Corp stands at 0.59. The total capital return value is set at 0.05.
Based on Prospect Capital Corp (PSEC), the company’s capital structure generated 0.31 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 0.46. The interest coverage ratio of the stock is 2.77.
Currently, EBITDA for the company is 328.49 million with net debt to EBITDA at 5.55. When we switch over and look at the enterprise to sales, we see a ratio of 10.62. The receivables turnover for the company is 15.4for trailing twelve months and the total asset turnover is 0.06.
Conclusion
To wrap up, the performance of Prospect Capital Corp (PSEC) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
