Prospect Capital (NASDAQ:PSEC) Issues Earnings Results

Prospect Capital (NASDAQ:PSEC) announced its earnings results on Thursday. The financial services provider reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.05, Zacks reports. The business had revenue of $150.07 million during the quarter, compared to analyst estimates of $163.23 million. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.00%.

Prospect Capital Stock Performance

Shares of NASDAQ:PSEC traded down $0.28 during mid-day trading on Friday, reaching $2.47. 19,238,067 shares of the company traded hands, compared to its average volume of 4,932,093. The company’s 50 day moving average price is $2.67 and its 200-day moving average price is $2.70. The firm has a market cap of $1.20 billion, a PE ratio of -6.68 and a beta of 0.82. Prospect Capital has a 52 week low of $2.44 and a 52 week high of $3.77. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.74 and a quick ratio of 0.74.

Prospect Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be paid a dividend of $0.035 per share. The ex-dividend date is Thursday, August 27th. This represents a c) dividend on an annualized basis and a dividend yield of 17.0%. Prospect Capital’s payout ratio is -145.95%.

Insider Buying and Selling

In other news, COO M Grier Eliasek purchased 942,800 shares of the stock in a transaction on Wednesday, February 11th. The shares were acquired at an average price of $2.92 per share, with a total value of $2,752,976.00. Following the completion of the acquisition, the chief operating officer directly owned 3,443,930 shares of the company’s stock, valued at $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.03% of the company’s stock.

Institutional Trading of Prospect Capital

Several institutional investors and hedge funds have recently modified their holdings of PSEC. Onyx Bridge Wealth Group LLC bought a new position in Prospect Capital in the 4th quarter worth $41,000. NewEdge Advisors LLC raised its holdings in Prospect Capital by 115,766.7% during the fourth quarter. NewEdge Advisors LLC now owns 13,904 shares of the financial services provider’s stock valued at $36,000 after acquiring an additional 13,892 shares during the period. XTX Topco Ltd raised its holdings in Prospect Capital by 156.9% during the fourth quarter. XTX Topco Ltd now owns 221,995 shares of the financial services provider’s stock valued at $575,000 after acquiring an additional 135,566 shares during the period. Claro Advisors Inc. lifted its position in shares of Prospect Capital by 13.3% in the fourth quarter. Claro Advisors Inc. now owns 192,405 shares of the financial services provider’s stock valued at $498,000 after acquiring an additional 22,540 shares in the last quarter. Finally, Boothbay Fund Management LLC bought a new position in shares of Prospect Capital in the fourth quarter worth about $33,000. 9.06% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Wall Street Zen downgraded Prospect Capital from a “buy” rating to a “hold” rating in a research note on Saturday, February 14th. Weiss Ratings reissued a “sell (d)” rating on shares of Prospect Capital in a report on Tuesday, April 21st. Two investment analysts have rated the stock with a Sell rating, According to MarketBeat, the stock presently has a consensus rating of “Sell” and an average target price of $2.50.

Prospect Capital News Summary

Here are the key news stories impacting Prospect Capital this week:

• Positive Sentiment: Prospect Capital reported quarterly EPS of $0.16, beating the $0.11 analyst consensus, and net investment income of $78.5 million, or $0.16 per share, which also supported results. Prospect Capital Announces March 2026 Results
• Positive Sentiment: The company reiterated its monthly dividend of $0.035 per share, implying a very high annualized yield, which may appeal to income-focused investors. Prospect Capital Reports Quarterly Results and Declares Distributions
• Positive Sentiment: The company also launched a new preferred equity distribution program, which could provide another funding avenue and support capital flexibility. Prospect Capital Launches New Preferred Equity Distribution Program
• Neutral Sentiment: Management discussed the quarter in its earnings call and transcript, but no major additional surprise appears to be driving sentiment beyond the reported numbers. Prospect Capital Corporation (PSEC) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue came in below expectations at $150.1 million versus the $163.2 million estimate, and interest income disappointed, which is likely weighing on the stock. Prospect Capital Q3 net investment income beats, but interest income disappoints

Prospect Capital Company Profile

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.