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Prospect Capital Corporation (PSEC) Stock Analysis

HoldVALUE-TRAP 1/5Moderate Confidence

Financial Services · Asset Management

Hold if already holding. Not a fresh buy at $2.18, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.1).

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital... Read more

$2.18+28.8% A.UpsideScore 5.2/10#75 of 109 Asset Management
QualityF-score6 / 9FCF yield18.16%
IncomeYield23.15%(5y avg 13.12%)Payout211.76%at-risk
Stop $2.08Target $2.77(resistance)A.R:R -2.2:1
Analyst target$2.00-8.3%1 analysts
Range unavailable (1 analysts)

Hold if already holding. Not a fresh buy at $2.18, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.1). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Maintain position. Not compelling to add more. Score 5.2/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 98d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Prospect Capital Corporation

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Sector modifier (Financial Services): +1.0
Strong earnings beat streak (3/4)
Attractive valuation
Risks
Analyst target reached - limited upside remaining
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.1)
Negative momentum

Key Metrics

P/E (TTM)
P/E (Fwd)6.1
Mkt Cap$1.1B
EV/EBITDA
Profit Mgn-5.8%
ROE-0.8%
Rev Growth-12.1%
Beta
Dividend23.15%
Rating analysts6

Quality Signals

Piotroski F6/9

Options Flow

P/C1.00neutral
Max Pain$1-54.1% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Obv
1.0
Ma Position
1.0
Macd
2.8
Rsi
3.0
Volume
3.0
Capitulation risk (RSI 21, below 200MA)Volume distribution (falling OBV)Below 200-MA, MA slope -1.2%/30d — confirmed downtrend

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.7
Growth Rank
1.2
Value Rank
9.3
GatesMomentum 2.2<4.5A.R:R -2.2=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 98d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
21 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $2.14Resistance $2.83

Price Targets

$2
$3
A.Upside+27.1%
A.R:R-2.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-20.9% upside)
! Momentum score 2.2/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-26 (98d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is PSEC stock a buy right now?

Hold if already holding. Not a fresh buy at $2.18, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.1). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Maintain position. Not compelling to add more. Target $2.77 (+27.1%), stop $2.08 (−4.8%), A.R:R -2.2:1. Score 5.2/10, moderate confidence.

What is the PSEC stock price target?

Take-profit target: $2.77 (+28.8% upside). Target $2.77 (+27.1%), stop $2.08 (−4.8%), A.R:R -2.2:1. Stop-loss: $2.08.

What are the risks of investing in PSEC?

Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.1); Negative momentum.

Is PSEC overvalued or undervalued?

Prospect Capital Corporation trades at a P/E of N/A (forward 6.1). TrendMatrix value score: 9.6/10. Verdict: Hold.

What do analysts say about PSEC?

6 analysts cover PSEC with a consensus score of 2.0/5. Average price target: $2.

What does Prospect Capital Corporation do?Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine...

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.

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