Prospect Capital Corporation offers extreme value at 6.6x forward earnings with a 4-for-4 beat streak and 17.6% free cash flow yield, but is in a confirmed price downtrend with a 1.4%/month declining 200-day moving average slope and faces negative revenue growth of -12%, making the setup a deep value trap risk.
Thesis pillars
- Revenue Declining Negative Growth→Stable
- Deep Value Beat Streak→Stable
- Confirmed Price Downtrend→Stable
- +1 more pillar — see the Why tab for full reasoning
Prospect Capital Corporation (PSEC) Stock Analysis
Recovery setup · Inst Constrain edge
Financial Services · Asset Management
Hold if already holding. Not a fresh buy at $2.26, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Below 200-day MA.
Prospect Capital Corporation is a Private Debt Fund. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and... Read more
Hold if already holding. Not a fresh buy at $2.26, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Below 200-day MA. Chart setup: Death cross but MACD improving, RSI 49. Maintain position. Not compelling to add more. Score 5.8/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 54d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.
Recent developments
updated 2026-07-06Recent Developments — Prospect Capital Corporation
Latest news
- NEWS Prospect Capital (NASDAQ:PSEC) Stock Passes Above 200-Day Moving Average - Should You Sell? - MarketBeat — MarketBeat neutral
- NEWS Prospect Capital Corporation 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock (PSEC/PA) - Minichart — Minichart neutral
- NEWS Earnings Preview: PSEC to Report Financial Results Post-market on May 07 - 富途牛牛 — 富途牛牛 neutral
- NEWS Prospect Capital Schedules Third Fiscal Quarter Earnings Release and Conference Call - marketscreener.com — marketscreener.com neutral
- NEWS Prospect Capital Schedules Third Fiscal Quarter Earnings Release and Conference Call - Moomoo — Moomoo neutral
Generated 2026-07-06T04:40:27Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $2.26, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Below 200-day MA. Chart setup: Death cross but MACD improving, RSI 49. Maintain position. Not compelling to add more. Target $2.32 (+2.7%), stop $2.08 (−8.7%), A.R:R -3.3:1. Score 5.8/10, moderate confidence.
Take-profit target: $2.32 (+3.6% upside). Target $2.32 (+2.7%), stop $2.08 (−8.7%), A.R:R -3.3:1. Stop-loss: $2.08.
Analyst target reached - limited upside remaining; Below 200-day MA.
Prospect Capital Corporation trades at a P/E of N/A (forward 6.4). TrendMatrix value score: 9.6/10. Verdict: Hold.
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 Private Debt Fund. It specializes in middle market, mature, mezzanine finance, later...
Prospect Capital Corporation is a Private Debt Fund. 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.