Wells Fargo & Company Issues Pessimistic Forecast for Prospect Capital (NASDAQ:PSEC) Stock Price

Prospect Capital (NASDAQ:PSEC) had its target price dropped by investment analysts at Wells Fargo & Company from $2.00 to $1.50 in a research note issued to investors on Friday, Benzinga reports. The firm currently has an “underweight” rating on the financial services provider’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 13.21% from the company’s current price.

A number of other equities analysts have also issued reports on the company. Zacks Research upgraded Prospect Capital to a “hold” rating in a research note on Monday, October 5th. Wall Street Zen downgraded Prospect Capital from a “buy” rating to a “hold” rating in a research note on Saturday, August 22nd. Finally, Weiss Ratings lowered Prospect Capital from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, August 26th. One equities research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Sell” and a consensus target price of $1.50.

Prospect Capital Trading Down 4.3%

NASDAQ PSEC opened at $1.32 on Friday. Prospect Capital has a 12-month low of $1.38 and a 12-month high of $3.12. The company has a fifty day simple moving average of $1.91 and a two-hundred day simple moving average of $2.34. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.64. The stock has a market cap of $707.31 million, a P/E ratio of -8.76 and a beta of 0.84.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings data on Wednesday, November 4th. The financial services provider reported $0.15 earnings per share for the quarter, beating analysts’ consensus estimates of $0.10 by $0.05. Prospect Capital had a net margin of 3.80% and a return on equity of 13.19%. The firm had revenue of $151.74 million for the quarter, compared to analyst estimates of $163.14 million. On average, analysts forecast that Prospect Capital will post 0.38 earnings per share for the current year.

Insider Activity at Prospect Capital

In other Prospect Capital news, CEO John Barry. III acquired 1,217,105 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were acquired at an average cost of $2.24 per share, with a total value of $2,726,315.20. Following the acquisition, the chief executive officer directly owned 90,479,988 shares of the company’s stock, valued at approximately $202,675,173.12. The trade was a 1.36% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. 25.94% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd grew its position in Prospect Capital by 55.5% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 16,970 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 6,056 shares during the period. Signaturefd LLC lifted its holdings in shares of Prospect Capital by 255.2% in the 3rd quarter. Signaturefd LLC now owns 19,337 shares of the financial services provider’s stock valued at $40,000 after buying an additional 13,893 shares during the period. Integrity Advisory Solutions LLC acquired a new position in shares of Prospect Capital in the 3rd quarter valued at about $29,000. Claro Advisors Inc. boosted its position in Prospect Capital by 7.8% in the 3rd quarter. Claro Advisors Inc. now owns 207,700 shares of the financial services provider’s stock worth $432,000 after purchasing an additional 15,000 shares in the last quarter. Finally, WINTON GROUP Ltd acquired a new position in shares of Prospect Capital in the 2nd quarter valued at $35,000. 9.06% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Prospect Capital

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

• Positive Sentiment: PSEC reported first-quarter fiscal 2027 net investment income of $0.15 per share, topping the $0.10 consensus estimate. Management also highlighted its credit profile and authorized a $200 million common-share repurchase program, which could support the shares if the company carries it out. Earnings call highlights
• Neutral Sentiment: The company announced monthly dividends of $0.035 per share for the coming payment dates. The roughly 30% indicated annual yield may appeal to income investors, though the high yield also raises questions about how sustainable the payout is. September results and repurchase announcement
• Negative Sentiment: Revenue of $151.74 million missed the $163.14 million consensus estimate. Net investment income was down from $0.17 per share a year earlier, and the company reported a $21 million quarterly loss, tempering the per-share income beat. Fiscal Q1 earnings snapshot
• Negative Sentiment: Concerns about a shrinking investment portfolio and the sustainability of PSEC’s unusually high dividend yield may weigh on investor sentiment, particularly against the stock’s weak price trend. Analysis of yield and portfolio trends

About Prospect Capital

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.