Prospect Capital (NASDAQ:PSEC) Announces Earnings Results

Prospect Capital (NASDAQ:PSEC) announced its quarterly earnings results on Wednesday. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.05, Zacks reports. Prospect Capital had a return on equity of 12.15% and a net margin of 19.33%. The company had revenue of $151.74 million during the quarter, compared to the consensus estimate of $163.14 million.

Prospect Capital Price Performance

PSEC traded down $0.06 during trading on Thursday, reaching $1.39. The company’s stock had a trading volume of 7,805,500 shares, compared to its average volume of 5,130,352. The company has a market cap of $739.34 million, a price-to-earnings ratio of 27.70 and a beta of 0.84. The firm has a fifty day simple moving average of $1.93 and a two-hundred day simple moving average of $2.35. Prospect Capital has a 1 year low of $1.38 and a 1 year high of $3.12. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.64.

Prospect Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Wednesday, February 17th. Shareholders of record on Wednesday, January 27th will be paid a $0.0350 dividend. This represents a $0.42 dividend on an annualized basis and a yield of 30.3%. The ex-dividend date of this dividend is Wednesday, January 27th. Prospect Capital’s dividend payout ratio (DPR) is -280.00%.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on PSEC shares. Wall Street Zen lowered shares of Prospect Capital from a “buy” rating to a “hold” rating in a report on Saturday, August 22nd. Weiss Ratings downgraded shares of Prospect Capital from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, August 26th. Finally, Zacks Research upgraded shares of Prospect Capital to a “hold” rating in a research report on Monday, October 5th. One investment analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Prospect Capital currently has an average rating of “Sell” and a consensus target price of $2.00.

Key Stories Impacting Prospect Capital

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

• Positive Sentiment: PSEC reported earnings of $0.15 per share, above the $0.10 analyst consensus, and authorized a $200 million common-share repurchase program. Prospect Capital Announces September 2026 Results and $200 Million Common Share Repurchase Program
• Neutral Sentiment: The company declared monthly dividends of $0.035 per share for the upcoming payment dates, equivalent to $0.42 annually. The reported 29.9% yield is notably high, but the dividend announcements do not indicate an increase. Prospect Capital dividend announcement
• Neutral Sentiment: Call-option trading rose sharply, with 2,565 calls traded—about 353% above the typical volume. This suggests increased speculative interest but does not establish a clear direction for the shares.
• Negative Sentiment: Quarterly revenue of $151.74 million missed the $163.14 million consensus. Net investment income was $76.4 million, down from $79.4 million a year earlier, while net investment income per share fell to $0.15 from $0.17. These trends may raise concerns about earnings and dividend sustainability. Prospect Capital Announces September 2026 Results and $200 Million Common Share Repurchase Program
• Negative Sentiment: A Seeking Alpha analysis characterized PSEC’s high yield as being paid from a shrinking portfolio, reinforcing concerns about the durability of its distributions. Prospect Capital: A 29% Yield Paid From A Shrinking Portfolio

Insider Activity

In related news, CEO John Barry. III purchased 1,217,105 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was purchased at an average price of $2.24 per share, with a total value of $2,726,315.20. Following the completion of the acquisition, the chief executive officer owned 90,479,988 shares in the company, valued at $202,675,173.12. This trade represents a 1.36% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. 25.94% of the stock is owned by company insiders.

About Prospect Capital

Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that provides financing and investment capital to middle-market companies. The company primarily invests in privately held businesses through first-lien and second-lien loans, mezzanine debt, and other debt securities, while also making equity and equity-related investments in selected companies.

Prospect Capital invests across a range of industries and has additional exposure to areas such as real estate, structured credit, and financial services.