Is Prospect Capital Stock a Good Investment?
Prospect Capital Investment Advice | PSEC |
- Examine Prospect Capital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Prospect Capital's leadership team and their track record. Good management can help Prospect Capital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Prospect Capital's business and its evolving consumer preferences.
- Compare Prospect Capital's performance and market position to its competitors. Analyze how Prospect Capital is positioned in terms of product offerings, innovation, and market share.
- Check if Prospect Capital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Prospect Capital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Prospect Capital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Prospect Capital is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Modest | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Prospect Capital Stock
Researching Prospect Capital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 28.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 0.55. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Prospect Capital has Price/Earnings To Growth (PEG) ratio of 1.59. The entity recorded a loss per share of 0.21. The firm last dividend was issued on the 27th of March 2025.
To determine if Prospect Capital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Prospect Capital's research are outlined below:
| Prospect Capital currently holds 2.43 B in liabilities with Debt to Equity (D/E) ratio of 0.54, which is about average as compared to similar companies. Prospect Capital has a current ratio of 0.56, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Prospect Capital's use of debt, we should always consider it together with its cash and equity. | |
| About 28.0% of Prospect Capital outstanding shares are owned by corporate insiders | |
| On 20th of March 2025 Prospect Capital paid $ 0.045 per share dividend to its current shareholders | |
| Latest headline from bizjournals.com: Penn Medicine negotiating with Prospect Medical to save Crozer Health |
Prospect Capital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Prospect Capital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Prospect Capital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 3rd of September 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Prospect Capital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Prospect Capital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-08-29 | 2022-06-30 | 0.19 | 0.21 | 0.02 | 10 | ||
2021-05-10 | 2021-03-31 | 0.17 | 0.19 | 0.02 | 11 | ||
2020-11-09 | 2020-09-30 | 0.17 | 0.15 | -0.02 | 11 | ||
2018-08-28 | 2018-06-30 | 0.2 | 0.22 | 0.02 | 10 | ||
2018-02-07 | 2017-12-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2005-02-11 | 2004-12-31 | 0.15 | 0.17 | 0.02 | 13 | ||
2024-05-08 | 2024-03-31 | 0.2 | 0.23 | 0.03 | 15 | ||
2023-11-08 | 2023-09-30 | 0.22 | 0.25 | 0.03 | 13 |
Know Prospect Capital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Prospect Capital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Prospect Capital backward and forwards among themselves. Prospect Capital's institutional investor refers to the entity that pools money to purchase Prospect Capital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | International Assets Investment Management, Llc | 2024-09-30 | 933.1 K | Raymond James & Associates | 2024-09-30 | 846.2 K | Susquehanna International Group, Llp | 2024-12-31 | 790 K | Bi Asset Management Fondsmaeglerselskab A/s | 2024-12-31 | 707.8 K | Two Sigma Investments Llc | 2024-12-31 | 684.8 K | Northern Trust Corp | 2024-12-31 | 598.8 K | Lsv Asset Management | 2024-12-31 | 563.7 K | Jane Street Group Llc | 2024-12-31 | 539.2 K | Hrt Financial Llc | 2024-12-31 | 514.9 K | Van Eck Associates Corporation | 8.1 M | Legal & General Group Plc | 2024-12-31 | 2.9 M |
Prospect Capital's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.88 B.Market Cap |
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Prospect Capital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.06 | |
| Return On Capital Employed | 0.09 | 0.04 | |
| Return On Assets | 0.04 | 0.06 | |
| Return On Equity | 0.04 | 0.07 |
Determining Prospect Capital's profitability involves analyzing its financial statements and using various financial metrics to determine if Prospect Capital is a good buy. For example, gross profit margin measures Prospect Capital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Prospect Capital's profitability and make more informed investment decisions.
Please note, the presentation of Prospect Capital's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Prospect Capital's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Prospect Capital's management manipulating its earnings.
Evaluate Prospect Capital's management efficiency
Prospect Capital has return on total asset (ROA) of 0.0442 % which means that it generated a profit of $0.0442 on every $100 spent on assets. This is way below average. Prospect Capital's management efficiency ratios could be used to measure how well Prospect Capital manages its routine affairs as well as how well it operates its assets and liabilities. At present, Prospect Capital's Return On Assets are projected to slightly decrease based on the last few years of reporting. The current year's Return On Equity is expected to grow to 0.07, whereas Return On Capital Employed is forecasted to decline to 0.04. At present, Prospect Capital's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 1.4 M, whereas Total Current Assets are forecasted to decline to about 66.2 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.34 | 13.53 | |
| Tangible Book Value Per Share | 14.34 | 13.53 | |
| Enterprise Value Over EBITDA | (43.96) | (41.77) | |
| Price Book Value Ratio | 0.51 | 0.85 | |
| Enterprise Value Multiple | (43.96) | (41.77) | |
| Price Fair Value | 0.51 | 0.85 | |
| Enterprise Value | 4.2 B | 2.8 B |
Prospect Capital benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Basic technical analysis of Prospect Stock
As of the 23rd of March, Prospect Capital holds the Coefficient Of Variation of (2,909), variance of 1.5, and Risk Adjusted Performance of (0.03). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Prospect Capital, as well as the relationship between them.Prospect Capital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Prospect Capital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Prospect Capital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Prospect Capital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Eliasek M Grier over a month ago Acquisition by Eliasek M Grier of 3500 shares of Prospect Capital at 5.23 subject to Rule 16b-3 | ||
Barry John F over six months ago Acquisition by Barry John F of 750000 shares of Prospect Capital at 5.26 subject to Rule 16b-3 | ||
Barry John F over six months ago Acquisition by Barry John F of 750000 shares of Prospect Capital at 5.17 subject to Rule 16b-3 | ||
John Barry over a year ago Acquisition by John Barry of 4610490 shares of Prospect Capital at 4.7732 subject to Rule 16b-3 | ||
Van Dask Kristin Lea over a year ago Prospect Capital exotic insider transaction detected | ||
Eugene Stark over a year ago Purchase by Eugene Stark of 3000 shares of Prospect Capital | ||
Brian Oswald over a year ago Purchase by Brian Oswald of 46627 shares of Prospect Capital |
Prospect Capital's Outstanding Corporate Bonds
Prospect Capital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Prospect Capital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Prospect bonds can be classified according to their maturity, which is the date when Prospect Capital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| US74348YAV39 Corp BondUS74348YAV39 | View | |
| US74348YDX67 Corp BondUS74348YDX67 | View | |
| PROSPECT CAP P Corp BondUS74348YEA55 | View | |
| US74348TAU60 Corp BondUS74348TAU60 | View | |
| US74348TAT97 Corp BondUS74348TAT97 | View | |
| US74348TAV44 Corp BondUS74348TAV44 | View | |
| PSEC 3437 15 OCT 28 Corp BondUS74348TAW27 | View |
Understand Prospect Capital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Prospect Capital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 0.8436 | |||
| Coefficient Of Variation | (2,909) | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.5 | |||
| Information Ratio | 0.0124 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | 0.0409 | |||
| Treynor Ratio | (0.14) | |||
| Maximum Drawdown | 6.62 | |||
| Value At Risk | (1.64) | |||
| Potential Upside | 2.09 | |||
| Skewness | 1.23 | |||
| Kurtosis | 3.71 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 0.8436 | |||
| Coefficient Of Variation | (2,909) | |||
| Standard Deviation | 1.22 | |||
| Variance | 1.5 | |||
| Information Ratio | 0.0124 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | 0.0409 | |||
| Treynor Ratio | (0.14) | |||
| Maximum Drawdown | 6.62 | |||
| Value At Risk | (1.64) | |||
| Potential Upside | 2.09 | |||
| Skewness | 1.23 | |||
| Kurtosis | 3.71 |
Consider Prospect Capital's intraday indicators
Prospect Capital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Prospect Capital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Prospect Capital Corporate Filings
F4 | 21st of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 11th of March 2025 Other Reports | ViewVerify | |
| 10th of March 2025 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
| 28th of February 2025 Other Reports | ViewVerify |
Prospect Stock media impact
Far too much social signal, news, headlines, and media speculation about Prospect Capital that are available to investors today. That information is available publicly through Prospect media outlets and privately through word of mouth or via Prospect internal channels. However, regardless of the origin, that massive amount of Prospect data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Prospect Capital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Prospect Capital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Prospect Capital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Prospect Capital alpha.
Prospect Capital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Prospect Capital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Prospect Capital Historical Investor Sentiment
Investor biases related to Prospect Capital's public news can be used to forecast risks associated with an investment in Prospect. The trend in average sentiment can be used to explain how an investor holding Prospect can time the market purely based on public headlines and social activities around Prospect Capital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Prospect Capital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Prospect Capital and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Prospect Capital news discussions. The higher the estimate score, the more favorable the investor's outlook on Prospect Capital.
Prospect Capital Corporate Management
| Jonathan JD | Deputy Counsel | Profile | |
| Bart JD | Managing Director | Profile | |
| Jonathan Li | Deputy Counsel | Profile | |
| David Belzer | Managing Director | Profile | |
| Trisha Blackman | Head Administration | Profile | |
| Al Faella | Chief Officer | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prospect Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prospect Capital. If investors know Prospect will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prospect Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.78) | Dividend Share 0.69 | Earnings Share (0.21) | Revenue Per Share | Quarterly Revenue Growth (0.12) |
The market value of Prospect Capital is measured differently than its book value, which is the value of Prospect that is recorded on the company's balance sheet. Investors also form their own opinion of Prospect Capital's value that differs from its market value or its book value, called intrinsic value, which is Prospect Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Prospect Capital's market value can be influenced by many factors that don't directly affect Prospect Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Prospect Capital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Prospect Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prospect Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.