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

Prospect Capital (NASDAQ:PSEC) announced its earnings results on Wednesday. The financial services provider reported $0.15 earnings per share for the quarter, beating analysts’ consensus estimates of $0.10 by $0.05, Zacks reports. Prospect Capital had a net margin of 19.33% and a return on equity of 12.15%. The firm had revenue of $151.74 million for the quarter, compared to analyst estimates of $163.14 million.

Prospect Capital Trading Down 7.1%

NASDAQ:PSEC opened at $1.44 on Thursday. Prospect Capital has a one year low of $1.40 and a one year high of $3.12. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.87 and a quick ratio of 0.87. The company’s 50-day simple moving average is $1.93 and its 200 day simple moving average is $2.35. The firm has a market capitalization of $768.70 million, a P/E ratio of 28.80 and a beta of 0.84.

Prospect Capital Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, October 28th will be paid a dividend of $0.0350 per share. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $0.42 annualized dividend and a yield of 29.2%. Prospect Capital’s payout ratio is presently 840.00%.

Insiders Place Their Bets

In other Prospect Capital news, CEO John Barry. III bought 1,217,105 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was acquired at an average price of $2.24 per share, with a total value of $2,726,315.20. Following the completion of the purchase, the chief executive officer owned 90,479,988 shares of the company’s stock, valued at approximately $202,675,173.12. This trade represents a 1.36% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 25.94% of the company’s stock.

Key Headlines Impacting Prospect Capital

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

• Positive Sentiment: Prospect announced a $200 million common-share repurchase program, which could support per-share value if shares are repurchased below their underlying value. Prospect Capital results and repurchase announcement
• Negative Sentiment: The quarter showed pressure on income: net investment income was $76.4 million, down from $77.7 million in the prior quarter and $79.4 million a year earlier. Net investment income per share was $0.15, versus $0.17 a year ago. Prospect Capital September 2026 results
• Negative Sentiment: Prospect reported a $0.10-per-share loss, missing the cited consensus estimate of $0.10 profit, while revenue of $151.7 million fell short of expectations of $163.1 million. A separate earnings report also noted that interest income and total investment income missed estimates, reinforcing concerns about income generation. Prospect Capital quarterly earnings report Prospect Capital earnings details

Analysts Set New Price Targets

A number of research firms recently issued reports on PSEC. Zacks Research raised shares of Prospect Capital to a “hold” rating in a research note on Monday, October 5th. Weiss Ratings cut Prospect Capital from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, August 26th. Finally, Wall Street Zen downgraded Prospect Capital from a “buy” rating to a “hold” rating in a report on Saturday, August 22nd. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Sell” and a consensus price target of $2.00.

Prospect Capital Company Profile

Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that provides financing and investment capital to middle-market companies. The company primarily invests in privately held businesses through first-lien and second-lien loans, mezzanine debt, and other debt securities, while also making equity and equity-related investments in selected companies.

Prospect Capital invests across a range of industries and has additional exposure to areas such as real estate, structured credit, and financial services.