Prospect Capital (NASDAQ:PSEC) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS

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

Prospect Capital Price Performance

Shares of Prospect Capital stock traded down $0.28 on Friday, hitting $2.47. The company had a trading volume of 19,238,067 shares, compared to its average volume of 4,932,093. The business has a 50-day simple moving average of $2.67 and a 200-day simple moving average of $2.70. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.74 and a quick ratio of 0.74. The company has a market cap of $1.20 billion, a PE ratio of -6.68 and a beta of 0.82. Prospect Capital has a 52 week low of $2.44 and a 52 week high of $3.77.

Prospect Capital Dividend Announcement

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

Trending Headlines about Prospect Capital

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

Analyst Ratings Changes

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

Insider Activity

In related news, COO M Grier Eliasek acquired 942,800 shares of the firm’s stock in a transaction dated Wednesday, February 11th. The stock was acquired at an average cost of $2.92 per share, for a total transaction of $2,752,976.00. Following the completion of the acquisition, the chief operating officer directly owned 3,443,930 shares of the company’s stock, valued at approximately $10,056,275.60. The trade was a 37.69% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.03% of the stock is owned by company insiders.

Institutional Trading of Prospect Capital

A number of large investors have recently added to or reduced their stakes in PSEC. Goldman Sachs Group Inc. boosted its holdings in Prospect Capital by 29.3% during the first quarter. Goldman Sachs Group Inc. now owns 393,034 shares of the financial services provider’s stock worth $1,611,000 after buying an additional 89,139 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Prospect Capital by 140.0% during the 1st quarter. Empowered Funds LLC now owns 88,397 shares of the financial services provider’s stock valued at $362,000 after buying an additional 51,562 shares during the last quarter. Jump Financial LLC bought a new position in shares of Prospect Capital during the 2nd quarter valued at $87,000. Qube Research & Technologies Ltd acquired a new stake in shares of Prospect Capital in the second quarter worth about $116,000. Finally, Raymond James Financial Inc. lifted its holdings in Prospect Capital by 0.5% in the 2nd quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider’s stock worth $2,685,000 after purchasing an additional 3,880 shares during the last quarter. 9.06% of the stock is currently owned by institutional investors.

About Prospect Capital

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.