PSEC stock: buy or sell?

PSEC stock price: $6.58 -0.45% At close on January 24th, 2020

Updated on:
January 24th, 2020

4

Shares of Prospect Capital depreciated an unpleasant -0.45% and closed at $6.58.

Should I buy PSEC stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. 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?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we found 1 rating published for PSEC stock in the last month.

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

PSEC stock analysis

Daily outlook

Prospect Capital ended on January/24 at $6.58 and depreciated an unpleasant -0.45%.

Prospect Capital ended on January 24th at $6.58 and depreciated an unpleasant -0.45%. On November PSEC price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock.

PSEC stock chart (daily)

Weekly outlook

Prospect Capital closed this week at $6.58 and remained constant a disappointing -0.30%.

Prospect Capital stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, PSEC might consolidate in a flat-base, waiting to break out over or down under . Since mid June 2019 when PSEC stock price broke up the SMA40w line, it gained $0.65 (10.96%). Since SMA20d and SMA40w crossed up by mid May 2019, PSEC price climbed $0.30 per share (4.78%).

PSEC stock chart (weekly)

PSEC stock price history

PSEC stock went public on July 27th, 2004 with a price of $2.751. Since then, PSEC stock surged a 139.30%, with a yearly average of 9.30%. If you had invested $1,000 in PSEC stock in 2004, it would worth $1,393.00 today.

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

PSEC stock historical price chart

PSEC stock reached 52-week highs on Dec 17th at $6.69, and all-time highs 2017-05-02 with a price of 6.99.

PSEC stock price target is $4.00

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. Currently, only 1 price forecast for Prospect Capital stock was published in the last 30 days:
PSEC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-2-11National SecuritiesReiteratesn/a$4.00-
(in average)$0.00$4.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Prospect Capital presented its financial report, 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 fine increase of 3.55% to $670.86 M dollars. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) jumped a 5.66% to 44.70%.

Prospect Capital presents anual results in June, and to compare 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 million USD. If we compare this TTM figures with the last reported annuality, we can esteem Prospect Capital business evolution since June 2018: Annual revenues up to December, compared to lastest yearly report, plummed a hair-raising -14.76%. Regarding profit margin, Prospect Capital plunged -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 reported $39.68 M in sales for 2018-Q4, a -77.84% decline compared to previous quarter. Reported quarter income 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 revenues to same quarter last year, Prospect Capital sales marked a scary correction 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 check its ownership structure.

Prospect Capital shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 11.28% of all shares.

In case of Prospect Capital stock, 13.10% 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$2.4 B
Total shares367.4 M
Float shares0.0 M
  - Institutional holdings (%)13.1%
  - Insider holdings (%)11.3%
Shares in short selling0.0%

PSEC summary

Friday, January 24th, 2020
Open$6.61
Close$6.58
Day range$6.56 - $6.65
Previous close$6.61
Session gain-0.45%
Average true range$0.05
50d mov avg$6.48
100d mov avg$6.41
200d mov avg$6.31
Daily pattern
Weekly pattern lt06a

Prospect Capital performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Prospect Capital, the benchmark is made against .
Stock3m6m12m
PSECProspect Capital3.46%3.79%7.87%

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.