PSEC stock: buy or sell?
August 23rd, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
PSEC stock analysis
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%).
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 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 $5.00Nobody 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince last February, when Prospect Capital posted its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%.
|2013||$550 M||-||$221 M40.1%||-|
|2014||$703 M||27.82%||$319 M45.4%||44.44%|
|2015||$775 M||10.18%||$346 M44.7%||8.56%|
|2016||$524 M||-32.33%||$103 M19.7%||-70.16%|
|2017||$648 M||23.59%||$253 M39.0%||144.68%|
|2018||$671 M||3.55%||$300 M44.7%||18.57%|
|TTM||$572 M||-14.76%||$183 M31.9%||-39.12%|
Quarterly financial resultsProspect 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.
|2017-Q1||$171 M||-||$19 M11.4%||-|
|2017-Q2||$70 M||-59.35%||$51 M73.5%||162.54%|
|2017-Q3||$159 M||127.88%||$12 M7.6%||-76.60%|
|2017-Q4||$211 M||33.02%||$122 M57.7%||916.68%|
|2018-Q1||$144 M||-31.61%||$52 M36.0%||-57.40%|
|2018-Q2||$209 M||44.79%||$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 ownershipWhen 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:
|Market cap||$2.4 B|
|Total shares||363.3 M|
|Float shares||0.0 M|
|- Institutional holdings (%)||13.6%|
|- Insider holdings (%)||17.4%|
|Shares in short selling||0.0%|
|Friday, August 23rd, 2019|
|Day range||$6.57 - $6.71|
|Average true range||$0.11|
|50d mov avg||$6.53|
|100d mov avg||$6.50|
|200d mov avg||$6.37|
Prospect Capital performanceTo 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: