PSEC stock: buy or sell?

PSEC stock price: $4.49 -6.85% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

After boosting a dazzling 8.71% on Mar 26th, Prospect Capital closed yesterday at $4.49 and plunged a spooky -6.85%.

Should I buy PSEC stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Prospect Capital stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Prospect Capital stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for PSEC stock for the last 30 days.

PSEC stock analysis

Daily outlook

After boosting a dazzling 8.71% on Mar/26, Prospect Capital closed yesterday at $4.49 and plunged a spooky -6.85%.

After boosting a dazzling 8.71% on Mar 26th, Prospect Capital closed yesterday at $4.49 and plunged a spooky -6.85%. Since price and SMA200d lines crossed down on February 25th, PSEC fell $-1.89 per share (-29.62%).

PSEC stock chart (daily)

Weekly outlook

Prospect Capital ended this week at $4.49 and plunged a dreadful -6.46%. For 3 weeks in a row, price slid and lost a -19.06%.

Since late February, when PSEC stock price broke down the 40-weeks moving avarage line, it slid $-1.98 per share (-30.60%). Stocks below the 40w moving average line are usually not recommended for average traders.

PSEC stock chart (weekly)

PSEC stock price history

PSEC IPO was on July 27th, 2004 at $2.70 per share1. Since then, PSEC stock grew a 66.30%, with a yearly average of 4.40%. If you had invested right after PSEC's IPO a $1,000 in PSEC stock in 2004, it would worth $663.00 today.

1: Adjusted price after possible price splits or reverse-splits.

PSEC stock historical price chart

PSEC stock reached 52-week highs on December at $6.56, and all-time highs 2017-04-27 with a price of 6.86.

PSEC stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' PSEC stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price prediction for Prospect Capital stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Prospect Capital reported its latest financial data, in line with analysts' consensus and posted a $0.22 Earnings per Share. Unfortunately, reported EPS is not yet available in our database.
PSEC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.05n/a
2017-Q2-n/a0.16n/a
2017-Q32017-11-080.190.18-5.3%
2017-Q42018-02-070.180.211.1%
2018-Q12018-05-090.180.195.6%
2018-Q22018-08-280.20.2210.0%
2018-Q32018-11-060.210.239.5%
2018-Q42019-02-060.220.220.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a good increase of 3.55% to $670.86 million USD. In line, its profit margin (compared to revenues) escalated to 44.70%, that is $299.86 million.

Prospect Capital fiscal year ends in June, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Prospect Capital TTM sales up to December 2018 were $571.84 and income $182.57 M dollars. When comparing this TTM figures with the last reported annuality, we can review Prospect Capital business evolution since June 2018: Annual sales up to December, compared to lastest yearly report, collapsed a frightening -14.76%. Regarding profit margin, Prospect Capital plummed -12.77% to 44.70%

PSEC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$550 M-$221 M40.1%-
2014$703 M27.82%$319 M45.4%44.44%
2015$775 M10.18%$346 M44.7%8.56%
2016$524 M-32.33%$103 M19.7%-70.16%
2017$648 M23.59%$253 M39.0%144.68%
2018$671 M3.55%$300 M44.7%18.57%
TTM $572 M-14.76%$183 M31.9%-39.12%

Quarterly financial results

Prospect Capital posted $39.68 M in sales for 2018-Q4, a -77.84% decline compared to previous quarter. Reported quarter earnings marked $-67.39 million with a profit margin of -169.82%. Profit margin plummed a -216.62% compared to previous quarter when profit margin was 46.80%. When comparing turnover to same quarter last year, Prospect Capital sales marked a hair-raising loss and plummed a -81.19%. Looking back to recent quarterly results, Prospect Capital posted 2 negative quarters in a row.
PSEC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$171 M-$19 M11.4%-
2017-Q2$70 M-59.35%$51 M73.5%162.54%
2017-Q3$159 M127.88%$12 M7.6%-76.60%
2017-Q4$211 M33.02%$122 M57.7%916.68%
2018-Q1$144 M-31.61%$52 M36.0%-57.40%
2018-Q2$209 M44.79%$114 M54.7%120.41%
2018-Q3$179 M-14.27%$84 M46.8%-26.69%
2018-Q4$40 M-77.84%$-67 M-169.8%-180.42%

Prospect Capital ownership

When you are planning to buy a company, it's always worth to review its ownership structure.

Prospect Capital shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 17.55% of all shares.

In case of Prospect Capital stock, 15.11% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions).

The following table compares ownership indicators for other stocks related to Prospect Capital:

PSEC
Market cap$1.7 B
Total shares367.7 M
Float shares0.0 M
  - Institutional holdings (%)15.1%
  - Insider holdings (%)17.5%
Shares in short selling0.0%

PSEC summary

Friday, March 27th, 2020
Open$4.72
Close$4.49
Day range$4.49 - $4.85
Previous close$4.82
Session gain-6.85%
Average true range$0.58
50d mov avg$5.81
100d mov avg$6.07
200d mov avg$6.12
Daily patternlt02a
Weekly pattern

Prospect Capital performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Prospect Capital to :
Stock3m6m12m
PSECProspect Capital-29.07%-29.18%-23.77%

Prospect Capital competitors

Unfortunately, we could not find any public company that could be defined as Prospect Capital competitor. This doesn't mean Prospect Capital does not have any competitor in the market, it's just we could not detected it.