Prospect Capital Corporation [NASDAQ: PSEC] loss -1.55% on the last trading session, reaching $8.26 price per share at the time. The company report on July 13, 2021 that Prospect Capital Announces Pricing of $150 Million in Aggregate Liquidation Preference of 5.35% Series A Perpetual Preferred Stock.
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) announced the pricing of an underwritten public offering of 6 million shares, or $150 million in aggregate liquidation preference, of newly designated 5.35 % Series A Fixed Rate Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”) at a public offering price of $25.00 per share. In addition, Prospect has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of Series A Preferred Stock solely to cover over-allotments. This offering is expected to close on July 19, 2021, subject to customary closing conditions.
Morgan Stanley, RBC Capital Markets and UBS Investment Bank are acting as joint book-running managers for this offering. Goldman Sachs & Co. LLC is acting as lead manager for this offering. Ladenburg Thalmann, InspereX, Wedbush Securities and William Blair are acting as co-managers for this offering.
Prospect Capital Corporation represents 387.00 million in outstanding shares, while the company has a total market value of $3.20 billion with the latest information. PSEC stock price has been found in the range of $8.25 to $8.44.
If compared to the average trading volume of 2.43M shares, PSEC reached a trading volume of 1369050 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Prospect Capital Corporation [PSEC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PSEC shares is $6.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PSEC stock is a recommendation set at 4.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Prospect Capital Corporation shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on June 25, 2020. The new note on the price target was released on April 20, 2020, representing the official price target for Prospect Capital Corporation stock. Previously, the target price had yet another drop from $7 to $6, while Barclays kept a Underweight rating on PSEC stock.
The Average True Range (ATR) for Prospect Capital Corporation is set at 0.21, with the Price to Sales ratio for PSEC stock in the period of the last 12 months amounting to 5.20. The Price to Book ratio for the last quarter was 0.92.
Trading performance analysis for PSEC stock
Prospect Capital Corporation [PSEC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.55. With this latest performance, PSEC shares dropped by -10.22% in over the last four-week period, additionally plugging by 47.24% over the last 6 months – not to mention a rise of 71.37% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PSEC stock in for the last two-week period is set at 42.17, with the RSI for the last a single of trading hit 39.64, and the three-weeks RSI is set at 45.05 for Prospect Capital Corporation [PSEC]. The present Moving Average for the last 50 days of trading for this stock 8.50, while it was recorded at 8.24 for the last single week of trading, and 6.86 for the last 200 days.
Prospect Capital Corporation [PSEC]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Prospect Capital Corporation [PSEC] shares currently have an operating margin of -2.20 and a Gross Margin at +71.27. Prospect Capital Corporation’s Net Margin is presently recorded at -2.63.
Return on Total Capital for PSEC is now -0.25, given the latest momentum, and Return on Invested Capital for the company is -0.30. Return on Equity for this stock declined to -0.51, with Return on Assets sitting at -0.29. When it comes to the capital structure of this company, Prospect Capital Corporation [PSEC] has a Total Debt to Total Equity ratio set at 69.95. Additionally, PSEC Total Debt to Total Capital is recorded at 41.16, with Total Debt to Total Assets ending up at 40.33. Long-Term Debt to Equity for the company is recorded at 69.95, with the Long-Term Debt to Total Capital now at 41.16.
Receivables Turnover for the company is 28.84 with a Total Asset Turnover recorded at a value of 0.11.
Prospect Capital Corporation [PSEC]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PSEC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Prospect Capital Corporation go to 5.00%.
An analysis of insider ownership at Prospect Capital Corporation [PSEC]
There are presently around $294 million, or 10.90% of PSEC stock, in the hands of institutional investors. The top three institutional holders of PSEC stocks are: LSV ASSET MANAGEMENT with ownership of 6,406,486, which is approximately -9.061% of the company’s market cap and around 27.94% of the total institutional ownership; LEGAL & GENERAL GROUP PLC, holding 2,682,967 shares of the stock with an approximate value of $22.16 million in PSEC stocks shares; and VAN ECK ASSOCIATES CORP, currently with $20.77 million in PSEC stock with ownership of nearly 3.727% of the company’s market capitalization.
Positions in Prospect Capital Corporation stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 93 institutional holders increased their position in Prospect Capital Corporation [NASDAQ:PSEC] by around 2,857,705 shares. Additionally, 84 investors decreased positions by around 6,067,288 shares, while 48 investors held positions by with 26,660,638 shares. The mentioned changes placed institutional holdings at 35,585,631 shares, according to the latest SEC report filing. PSEC stock had 29 new institutional investments in for a total of 1,113,801 shares, while 28 institutional investors sold positions of 2,250,079 shares during the same period.