Prospect Capital Corp (NASDAQ: PSEC) has experienced a decline in its stock price by -0.69 compared to its previous closing price of 4.39. However, the company has seen a gain of 2.11% in its stock price over the last five trading days. seekingalpha.com reported 2025-01-17 that The BDC sector had a lackluster H2 of 2024 after being on a strong run from 2022 to mid 2024. However, recently there has been some great news for BDCs to start 2025. We share our approach to BDCs right now.
Is It Worth Investing in Prospect Capital Corp (NASDAQ: PSEC) Right Now?
The 36-month beta value for PSEC is at 0.98. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 as “hold,” and 1 as “sell.”
The public float for PSEC is 310.15M, and currently, shorts hold a 5.25% of that float. The average trading volume for PSEC on January 22, 2025 was 3.75M shares.
PSEC’s Market Performance
PSEC stock saw an increase of 2.11% in the past week, with a monthly gain of 2.35% and a quarterly increase of -17.74%. The volatility ratio for the week is 1.56%, and the volatility levels for the last 30 days are 2.21% for Prospect Capital Corp (PSEC). The simple moving average for the past 20 days is 1.59% for PSEC’s stock, with a -15.06% 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 -1.73% 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 -30.24% of loss for the given period.
Volatility was left at 2.21%, however, over the last 30 days, the volatility rate increased by 1.56%, as shares surge +2.76% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -16.15% lower at present.
During the last 5 trading sessions, PSEC rose by +1.92%, which changed the moving average for the period of 200-days by -19.85% in comparison to the 20-day moving average, which settled at $4.29. In addition, Prospect Capital Corp saw 1.16% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PSEC starting from Barry John F, who purchase 2,000,000 shares at the price of $4.29 back on Dec 24 ’24. After this action, Barry John F now owns 79,477,549 shares of Prospect Capital Corp, valued at $8,580,000 using the latest closing price.
Eliasek M Grier, the Chief Operating Officer of Prospect Capital Corp, purchase 210,000 shares at $4.81 during a trade that took place back on Nov 29 ’24, which means that Eliasek M Grier is holding 2,131,130 shares at $1,010,058 based on the most recent closing price.
Stock Fundamentals for PSEC
Current profitability levels for the company are sitting at:
- 0.55 for the present operating margin
- 0.7 for the gross margin
The net margin for Prospect Capital Corp stands at 0.02. The total capital return value is set at 0.04.
Based on Prospect Capital Corp (PSEC), the company’s capital structure generated 0.04 points at debt to capital in total, while cash flow to debt ratio is standing at 2.49. The debt to equity ratio resting at 0.04. The interest coverage ratio of the stock is 2.11.
When we switch over and look at the enterprise to sales, we see a ratio of 3.54.
Conclusion
In conclusion, Prospect Capital Corp (PSEC) has had a mixed performance lately. Opinion on the stock among analysts is bearish, with some giving it a “sell” 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.
