PSEC stock: buy or sell?

PSEC stock price: $6.60 -1.20% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

4

Prospect Capital depreciated an ugly -1.20% and closed at $6.60.

Should I buy PSEC stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

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?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we detected 2 ratings published for PSEC stock in the last month.

Is PSEC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-2-11National Securitiesn/aSell
2019-1-22BarclaysEqual WeightUnderweight

PSEC stock analysis

Daily outlook

Prospect Capital shares depreciated -1.20% to $6.60 today.

Prospect Capital closed today at $6.60 and depreciated an ugly -1.20%. On June PSEC price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since last May when SMA100d and SMA200d crossed up, PSEC price slipped $-0.03 per share (-0.45%).

PSEC stock chart (daily)

Weekly outlook

Prospect Capital shares grew 1.07% this week, ending at $6.60.

If you observe the weekly chart, price is in a simple uptrend, tested $6.35 level and now climbing back aiming its last top at $6.69. Since price and SMA40w lines crossed up by mid June, PSEC climbed $0.38 (6.11%). By mid May, SMA20w and SMA40w crossed up triggering a rise of 0.30%.

PSEC stock chart (weekly)

PSEC stock price history

PSEC IPO was on July 27th, 2004 at $2.88 per share1. Since then, PSEC stock surged a 129.20%, with a yearly average of 8.60%. If you had invested right after PSEC's IPO a $1,000 in PSEC stock in 2004, it would worth $1,292.00 today.

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

PSEC stock historical price chart

PSEC stock reached 52-week highs on August at $6.89, and all-time highs 2017-05-02 with a price of 7.32.

PSEC stock price target is $5.00

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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. We found 2 price targets for Prospect Capital stock posted in the last 30 days:
PSEC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-2-11National SecuritiesReiteratesn/a$4.00-
2019-1-22BarclaysDowngrades$7.00$6.00-14.3%
(in average)$7.00$5.00-29.0%
Moving in a range from $6.00 and $4.00, the price prediction for PSEC stock is $5.00. In average, analysts' outlook on PSEC price target is negative, downsizing the target by a -29.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last February, when Prospect Capital posted its last earnings report, it . 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 decent growth of 3.55% to $670.86 M dollars. Aligned with this, its earnings margin (compared to revenues) escalated to 44.70%, that is $299.86 million.

Prospect Capital presents anual results 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 USD. If we compare this TTM figures with the last reported annuality, we can esteem Prospect Capital business evolution since June 2018: Annual sales up to December, compared to lastest yearly report, collapsed a frightening -14.76%. Similarly, profit margin (net income/revenues) plunged at 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 income marked $-67.39 M with a profit margin of -169.82%. Profit margin collapsed a -216.62% compared to previous quarter when profit margin was 46.80%. When comparing sales to same quarter last year, Prospect Capital sales marked a hair-raising loss and plunged 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 invest in shares of a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Prospect Capital, 17.41% of all outstanding shares are owned by its staff.

In case of Prospect Capital stock, 13.55% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions).

For a better understanding, the following table shows ownership data compared to other related companies:

PSEC
Market cap$2.4 B
Total shares363.3 M
Float shares0.0 M
  - Institutional holdings (%)13.6%
  - Insider holdings (%)17.4%
Shares in short selling0.0%

PSEC summary

Friday, August 23rd, 2019
Open$6.65
Close$6.60
Day range$6.57 - $6.71
Previous close$6.68
Session gain-1.20%
Average true range$0.11
50d mov avg$6.53
100d mov avg$6.50
200d mov avg$6.37
Daily pattern
Weekly pattern lb01a

Prospect Capital performance

To better understand Prospect Capital performance you must becnhmark its gains with other related stocks in same sector or industry. We compared Prospect Capital against in the following table:
Stock3m6m12m
PSECProspect Capital0.30%1.07%2.48%

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.