Prospect Capital (NASDAQ:PSEC) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Prospect Capital (NASDAQ:PSEC) posted its quarterly earnings data on Thursday. The financial services provider reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.04, Zacks reports. The company had revenue of $155.76 million for the quarter, compared to analysts’ expectations of $149.80 million. Prospect Capital had a net margin of 19.33% and a return on equity of 12.11%.

Prospect Capital Stock Performance

Prospect Capital stock opened at $2.33 on Friday. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.59. The company has a market capitalization of $1.17 billion, a PE ratio of 46.60 and a beta of 0.79. The firm has a fifty day simple moving average of $2.24 and a two-hundred day simple moving average of $2.47. Prospect Capital has a twelve month low of $2.11 and a twelve month high of $3.13.

Prospect Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, October 28th will be given a $0.035 dividend. This represents a c) dividend on an annualized basis and a yield of 18.0%. The ex-dividend date is Wednesday, October 28th. Prospect Capital’s dividend payout ratio (DPR) is presently -113.51%.

Key Prospect Capital News

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

Analyst Upgrades and Downgrades

Several brokerages have issued reports on PSEC. Weiss Ratings upgraded shares of Prospect Capital from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, May 29th. Wells Fargo & Company lowered their price objective on shares of Prospect Capital from $2.50 to $2.00 and set an “underweight” rating on the stock in a research report on Tuesday, May 12th. Finally, Wall Street Zen downgraded shares of Prospect Capital from a “buy” rating to a “hold” rating in a report on Saturday. Two research analysts have rated the stock with a Sell rating, According to MarketBeat.com, Prospect Capital has an average rating of “Sell” and a consensus price target of $2.00.

Insider Transactions at Prospect Capital

In related news, CEO John F. Barry acquired 1,067,648 shares of Prospect Capital stock in a transaction dated Tuesday, June 23rd. The shares were purchased at an average cost of $2.27 per share, with a total value of $2,423,560.96. Following the completion of the purchase, the chief executive officer owned 89,213,725 shares of the company’s stock, valued at $202,515,155.75. This represents a 1.21% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have bought 2,500,648 shares of company stock worth $5,678,121 in the last ninety days. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Prospect Capital

Several institutional investors have recently bought and sold shares of the stock. Schonfeld Strategic Advisors LLC bought a new position in Prospect Capital during the 4th quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. lifted its position in Prospect Capital by 381.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 12,687 shares of the financial services provider’s stock valued at $33,000 after purchasing an additional 10,052 shares during the last quarter. Boothbay Fund Management LLC purchased a new stake in shares of Prospect Capital during the fourth quarter valued at approximately $33,000. NewEdge Advisors LLC grew its holdings in shares of Prospect Capital by 115,766.7% in the fourth quarter. NewEdge Advisors LLC now owns 13,904 shares of the financial services provider’s stock worth $36,000 after purchasing an additional 13,892 shares during the last quarter. Finally, WealthPLAN Partners LLC bought a new position in shares of Prospect Capital in the fourth quarter worth approximately $40,000. 9.06% of the stock is currently owned by hedge funds and other institutional investors.

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.