Prospect Capital (NASDAQ:PSEC) Hits New 12-Month Low – Here’s Why

Shares of Prospect Capital Corporation (NASDAQ:PSEC) reached a new 52-week low on Saturday . The stock traded as low as $2.44 and last traded at $2.47, with a volume of 19238067 shares. The stock had previously closed at $2.75.

Prospect Capital News Roundup

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

Analysts Set New Price Targets

Several research analysts have recently weighed in on PSEC shares. Wall Street Zen cut Prospect Capital from a “buy” rating to a “hold” rating in a research note on Saturday, February 14th. Weiss Ratings restated a “sell (d)” rating on shares of Prospect Capital in a research note on Tuesday, April 21st. Two equities research analysts have rated the stock with a Sell rating, According to MarketBeat, the stock presently has an average rating of “Sell” and an average target price of $2.50.

Prospect Capital Price Performance

The firm has a fifty day moving average price of $2.67 and a two-hundred day moving average price of $2.70. The stock has a market capitalization of $1.20 billion, a P/E ratio of -6.68 and a beta of 0.82. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.74 and a current ratio of 0.74.

Prospect Capital (NASDAQ:PSEC) last released its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.05. The firm had revenue of $150.07 million for the quarter, compared to analysts’ expectations of $163.23 million. Prospect Capital had a positive return on equity of 12.00% and a negative net margin of 10.42%.

Prospect Capital Announces Dividend

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

Insider Buying and Selling

In other news, COO M Grier Eliasek acquired 942,800 shares of Prospect Capital stock in a transaction that occurred on Wednesday, February 11th. The stock was bought at an average price of $2.92 per share, for a total transaction of $2,752,976.00. Following the completion of the transaction, the chief operating officer owned 3,443,930 shares in the company, valued at $10,056,275.60. The trade was a 37.69% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Prospect Capital

A number of hedge funds have recently bought and sold shares of PSEC. Millennium Management LLC grew its position in Prospect Capital by 356.3% during the third quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider’s stock valued at $17,138,000 after buying an additional 4,866,312 shares during the period. Independent Financial Group LLC bought a new position in Prospect Capital in the first quarter worth approximately $8,644,000. Private Management Group Inc. bought a new position in Prospect Capital in the fourth quarter worth approximately $8,352,000. Marshall Wace LLP raised its position in Prospect Capital by 70.7% in the third quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider’s stock worth $18,338,000 after acquiring an additional 2,761,351 shares during the period. Finally, Balyasny Asset Management L.P. raised its position in Prospect Capital by 73.9% in the second quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider’s stock worth $18,002,000 after acquiring an additional 2,405,299 shares during the period. Hedge funds and other institutional investors own 9.06% of the company’s stock.

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.