Prospect Capital (NASDAQ:PSEC) Rating Lowered to Hold at Wall Street Zen

Prospect Capital (NASDAQ:PSEC) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Saturday.

A number of other research firms also recently weighed in on PSEC. Weiss Ratings raised Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, May 29th. Wells Fargo & Company cut their price target on Prospect Capital from $2.50 to $2.00 and set an “underweight” rating for the company in a report on Tuesday, May 12th. Two equities research analysts have rated the stock with a Sell rating, According to MarketBeat.com, the company currently has a consensus rating of “Sell” and a consensus price target of $2.00.

Prospect Capital Stock Performance

NASDAQ PSEC opened at $2.33 on Friday. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a market capitalization of $1.22 billion, a price-to-earnings ratio of 46.60 and a beta of 0.79. The company’s fifty day moving average is $2.24 and its two-hundred day moving average is $2.47. Prospect Capital has a 52-week low of $2.11 and a 52-week high of $3.13.

Prospect Capital (NASDAQ:PSEC) last posted its quarterly earnings data on Thursday, August 20th. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.04. The company had revenue of $155.76 million for the quarter, compared to the consensus estimate of $149.80 million. Prospect Capital had a net margin of 19.33% and a return on equity of 12.15%.

Insider Activity at Prospect Capital

In other Prospect Capital news, CEO John F. Barry bought 1,067,648 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The shares were acquired at an average cost of $2.27 per share, for a total transaction of $2,423,560.96. Following the transaction, the chief executive officer owned 89,213,725 shares in the company, valued at approximately $202,515,155.75. The trade was a 1.21% 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. Over the last ninety days, insiders have bought 2,500,648 shares of company stock worth $5,678,121. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PSEC. Goldman Sachs Group Inc. boosted its holdings in Prospect Capital by 29.3% during the first quarter. Goldman Sachs Group Inc. now owns 393,034 shares of the financial services provider’s stock valued at $1,611,000 after purchasing an additional 89,139 shares in the last quarter. Empowered Funds LLC grew its stake in shares of Prospect Capital by 140.0% in the 1st quarter. Empowered Funds LLC now owns 88,397 shares of the financial services provider’s stock valued at $362,000 after purchasing an additional 51,562 shares during the period. Jump Financial LLC bought a new stake in shares of Prospect Capital in the 2nd quarter valued at approximately $87,000. Qube Research & Technologies Ltd acquired a new position in shares of Prospect Capital in the 2nd quarter worth approximately $116,000. Finally, Raymond James Financial Inc. raised its holdings in shares of Prospect Capital by 0.5% in the 2nd quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider’s stock worth $2,685,000 after buying an additional 3,880 shares in the last quarter. Institutional investors own 9.06% of the company’s stock.

Prospect Capital News Roundup

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

• Positive Sentiment: PSEC reported net investment income of $0.15 per common share, exceeding the $0.11 analyst consensus, while quarterly revenue of $155.8 million also topped expectations of $149.8 million. The earnings beat is a near-term positive for the stock. Prospect Capital quarterly earnings report
• Positive Sentiment: The company maintained monthly distributions of $0.035 per share for September, October, and November, equating to an annualized yield of approximately 18.4% at the referenced share price. The payout remains a major attraction for income-oriented investors. Prospect Capital Announces June 2026 Results
• Positive Sentiment: Prospect reported $1.60 billion of cash and undrawn revolving credit capacity and subsequently closed the sale of Valley Electric for approximately $328 million, supporting liquidity and balance-sheet flexibility. Prospect Capital quarterly loss and NAV report
• Neutral Sentiment: Recent earnings-call coverage and the fiscal 2026 10-K provide additional detail on portfolio performance, credit quality, funding, and management’s plans; investors should review these disclosures for evidence that the dividend and NAV can be sustained. PSEC Q4 2026 earnings call transcript
• Negative Sentiment: PSEC posted a $38.1 million net loss, or $0.08 per share, as realized and unrealized investment losses totaled $83.8 million. NAV per share fell to $5.71 from $6.05 in the prior quarter, signaling material portfolio deterioration despite the operating-earnings beat. Prospect Capital NAV decline report
• Negative Sentiment: Analyst commentary warns that the unusually high yield may reflect credit, valuation, and dividend-sustainability risks rather than a simple bargain. Other coverage disputes the size of the reported NAV discount, underscoring uncertainty over the fair value of PSEC’s investments. Prospect Capital high-yield analysis

About Prospect Capital

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.