Prospect Capital (NASDAQ:PSEC) Issues Quarterly Earnings Results

Prospect Capital (NASDAQ:PSEC) posted its quarterly earnings data on Thursday. The financial services provider reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.05, Zacks reports. Prospect Capital had a negative net margin of 10.42% and a positive return on equity of 12.00%. The firm had revenue of $150.07 million for the quarter, compared to analysts’ expectations of $163.23 million.

Prospect Capital Stock Down 10.2%

Shares of PSEC stock traded down $0.28 on Friday, hitting $2.47. The company’s stock had a trading volume of 19,238,067 shares, compared to its average volume of 4,932,093. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.74 and a quick ratio of 0.74. Prospect Capital has a fifty-two week low of $2.44 and a fifty-two week high of $3.77. The firm’s fifty day moving average price is $2.67 and its 200-day moving average price is $2.70. The stock has a market capitalization of $1.20 billion, a price-to-earnings ratio of -6.68 and a beta of 0.82.

Prospect Capital Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be paid a $0.035 dividend. This represents a c) annualized dividend and a dividend yield of 17.0%. The ex-dividend date of this dividend is Thursday, August 27th. Prospect Capital’s payout ratio is presently -145.95%.

Prospect Capital News Roundup

Here are the key news stories impacting Prospect Capital this week:

• Positive Sentiment: Prospect Capital reported quarterly EPS of $0.16, beating the $0.11 analyst consensus, and net investment income of $78.5 million, or $0.16 per share, which also supported results. Prospect Capital Announces March 2026 Results
• Positive Sentiment: The company reiterated its monthly dividend of $0.035 per share, implying a very high annualized yield, which may appeal to income-focused investors. Prospect Capital Reports Quarterly Results and Declares Distributions
• Positive Sentiment: The company also launched a new preferred equity distribution program, which could provide another funding avenue and support capital flexibility. Prospect Capital Launches New Preferred Equity Distribution Program
• Neutral Sentiment: Management discussed the quarter in its earnings call and transcript, but no major additional surprise appears to be driving sentiment beyond the reported numbers. Prospect Capital Corporation (PSEC) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue came in below expectations at $150.1 million versus the $163.2 million estimate, and interest income disappointed, which is likely weighing on the stock. Prospect Capital Q3 net investment income beats, but interest income disappoints

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. Wall Street Zen cut shares of Prospect Capital from a “buy” rating to a “hold” rating in a research report on Saturday, February 14th. Weiss Ratings reiterated a “sell (d)” rating on shares of Prospect Capital in a report on Tuesday, April 21st. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell” and a consensus target price of $2.50.

Insider Activity

In other Prospect Capital news, COO M Grier Eliasek acquired 942,800 shares of Prospect Capital stock in a transaction that occurred on Wednesday, February 11th. The stock was acquired at an average price of $2.92 per share, with a total value of $2,752,976.00. Following the purchase, the chief operating officer owned 3,443,930 shares in the company, valued at approximately $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of PSEC. Millennium Management LLC raised its holdings in Prospect Capital by 356.3% in the 3rd quarter. Millennium Management LLC now owns 6,231,987 shares of the financial services provider’s stock worth $17,138,000 after acquiring an additional 4,866,312 shares during the period. Private Management Group Inc. bought a new position in shares of Prospect Capital during the 4th quarter worth about $8,352,000. Marshall Wace LLP increased its holdings in shares of Prospect Capital by 70.7% during the 3rd quarter. Marshall Wace LLP now owns 6,668,376 shares of the financial services provider’s stock worth $18,338,000 after purchasing an additional 2,761,351 shares during the period. Balyasny Asset Management L.P. increased its holdings in shares of Prospect Capital by 73.9% during the 2nd quarter. Balyasny Asset Management L.P. now owns 5,661,121 shares of the financial services provider’s stock worth $18,002,000 after purchasing an additional 2,405,299 shares during the period. Finally, Two Sigma Investments LP increased its holdings in shares of Prospect Capital by 99.9% during the 3rd quarter. Two Sigma Investments LP now owns 4,096,924 shares of the financial services provider’s stock worth $11,267,000 after purchasing an additional 2,047,189 shares during the period. Institutional investors own 9.06% of the company’s stock.

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.