Prospect Capital
PSEC

$5.47

0.92%

Market Cap: $2.29B

About: Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests primarily in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.

Employees: 8

0

Funds holding %

of 6,710 funds

–

Analysts bullish %

Fund manager confidence

Based on 2024 Q2 SEC filings by fund managers ($100M+ AUM)

52% more repeat investments, than reductions

Existing positions increased: 88 | Existing positions reduced: 58

0.16% more ownership

Funds ownership: 9.35% [Q1] → 9.51% (+0.16%) [Q2]

0% more funds holding in top 10

Funds holding in top 10: 2 [Q1] → 2 (+0) [Q2]

1% less funds holding

Funds holding: 226 [Q1] → 224 (-2) [Q2]

7% less first-time investments, than exits

New positions opened: 28 | Existing positions closed: 30

11% less capital invested

Capital invested by funds: $247M [Q1] → $220M (-$26.5M) [Q2]

31% less call options, than puts

Call options by funds: $7.86M | Put options by funds: $11.4M

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Research analyst outlook

1 Wall Street Analyst provided 1 year price targets over the past 3 months

Low target

$4.50

18%

downside

Avg. target

$4.50

18%

downside

High target

$4.50

18%

downside

1 analyst rating

0 positive

0%

0 neutral

0%

1 negative

100%

Wells Fargo

Finian O'Shea

62% 1-year accuracy

13 / 21 met price target

18%downside

$4.50

Underweight

Maintained

30 Aug 2024

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Financial journalist opinion

Based on 17 articles about PSEC published over the past 30 days

Prospect Capital: Bad Reputation But Enticing Value

Prospect Capital offers a remarkable 13% yield, supported by strong balance sheet quality and a well-performing investment portfolio. The BDC's favorable non-accrual trend and healthy dividend coverage profile make it an attractive buy for dividend investors. Despite a near-40% discount to NAV, Prospect Capital's dividend is well-supported,.

Prospect Capital: Bad Reputation But Enticing Value

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Insiders Can't Get Enough of These 6 Stocks

24/7 Wall St. Insights September may be a scary month for investors, but that hasn't stopped insiders from further boosting their stakes, some of them in energy companies.

Insiders Can't Get Enough of These 6 Stocks

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Want $1,000 per Month in Passive Income? Invest $10,000 Into These Dividend Stocks

24/7 Wall St. Insights Passive income is a steady stream of unearned income that doesn't require active traditional work.

Want $1,000 per Month in Passive Income? Invest $10,000 Into These Dividend Stocks

Prospect Capital: Good Dividend Yield, Not Shareholder Value

Prospect Capital Corp. is ideal for retirees due to its well-covered monthly dividends, low leverage, and significant discount to NAV. However, PSEC has consistently destroyed shareholder value with negative share price returns over the past 3, 5, and 10 years. The company's NAV has declined steadily, underperforming peers even in a high interest rate environment, leading to poor long-term performance.

Prospect Capital: Good Dividend Yield, Not Shareholder Value

24/7 Wall Street

Big Insider Buying by Carlos Slim and Other Repeat Buyers

24/7 Wall St. Insights Mexican billionaire Carlos Slim and other beneficial owners returned to boost stakes in energy companies and more.

Big Insider Buying by Carlos Slim and Other Repeat Buyers

BDC Weekly Review: Lenders Are Taking Over Pluralsight

We take a look at the action in business development companies through the last week of August and highlight some of the key themes we are watching. BDCs saw a 1% total return last week but ended August down 2%; six of our eight holdings were top performers. Private lenders, including major BDCs, are injecting $275m into Pluralsight, converting existing debt to equity.

BDC Weekly Review: Lenders Are Taking Over Pluralsight

How I Would Invest $100,000 For Big Dividends In September 2024

I discuss which areas of the market are most opportunistic for generating high yield income right now. I share some of my top picks within those sectors. I also share how I would deploy $100,000 of new money across those opportunities in September 2024.

How I Would Invest $100,000 For Big Dividends In September 2024

Dividend Cut Alert: Bad News For BDCs

BDCs have outperformed REITs since early 2022 due to rising short-term interest rates and a strong economy, but dynamics shifted in July. With long-term rates declining and recession fears rising, BDCs face dividend cut risk. One BDC recently slashed its dividend aggressively and more are likely to follow.

Dividend Cut Alert: Bad News For BDCs

Prospect Capital: Surprisingly Well-Covered 14% Yield

Prospect Capital's 14% dividend yield is sustainable, supported by a 70% LTM dividend pay-out ratio and a low non-accrual ratio of 0.3%. The stock's 40% discount to net asset value is exaggerated given its robust financial condition and strong credit quality. Prospect Capital's portfolio performance is solid, with impressive loan quality and substantial excess coverage for passive income investors.

Prospect Capital: Surprisingly Well-Covered 14% Yield

Bargain: Very Undervalued Bonds From Investment Grade Prospect Capital

Prospect Capital is a large investment grade business development company. Its bonds yield around 8% while other large-cap BDC bonds with the same credit rating are yielding around 5.5%. To add to the undervaluation, PSEC has by far the lowest leverage among its large-cap BDC peers, making it extremely safe.

Bargain: Very Undervalued Bonds From Investment Grade Prospect Capital

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