The share price of Prospect Capital Corporation [NASDAQ: PSEC] inclined by $6.57, presently trading at $6.37. The company’s shares saw 11.75% gains compared to the lowest price in the period of the last 52 weeks, set at $5.70 recorded on 13/06/2019. The last few days have been tough to the share price as PSEC fall by -1.09% during the last week, even though the stock is still down by -3.63% compared to -0.07 of all time high it touched on 06/12/19. However, the stock had a poor performance during the past 3 months, roughly losing -5.77%, while additionally dropping -7.28% during the last 12 months. Prospect Capital Corporation is said to have a 12-month price target set at $4.00. That means that the stock has a strong potential to acquire -2.37% decrease from the current trading price.
Prospect Capital Corporation [NASDAQ:PSEC]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Prospect Capital Corporation [PSEC] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in June. On average, stock market experts give PSEC an Underperform rating. Its stock price has been found in the range of 5.70 to 7.60. This is compared to its latest closing price of $6.57.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Prospect Capital Corporation [PSEC] is sitting at 4.00. This is compared to 1 month ago, when its average rating was 4.00.
For the quarter ending in Mar-19 Prospect Capital Corporation [PSEC] generated $0.17 billion in sales. That’s 3.16% lower than the average estimate of $0.18 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Tue 27 Aug (In 74 Days).
Fundamental Analysis of Prospect Capital Corporation [PSEC]
Now let’s turn to look at profitability: with a current Operating Margin for Prospect Capital Corporation [PSEC] sitting at +48.09 and its Gross Margin at +68.75.
Turning to investigate this organization’s capital structure, Prospect Capital Corporation [PSEC] has generated a Total Debt to Total Equity ratio of 67.85. Similarly, its Total Debt to Total Capital is 40.42, while its Total Debt to Total Assets stands at 39.59. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 64.87, and its Long-Term Debt to Total Capital is 38.65. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 15.02 and its Total Debt to EBITDA Value is 5.00. The Enterprise Value to Sales for this firm is now 6.35, and its Total Debt to Enterprise Value stands at 0.50. Prospect Capital Corporation [PSEC] has a Price to Book Ratio of 0.72, a Price to Cash Flow Ratio of 9.89.
Similarly, this company’s Receivables Turnover is 36.26 and its Total Asset Turnover is 0.11.
Prospect Capital Corporation [PSEC] has 366.97M shares outstanding, amounting to a total market cap of $2.34B. Its stock price has been found in the range of 5.70 to 7.60. At its current price, it has moved down by -16.18% from its 52-week high, and it has moved up 11.75% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is 1.30% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 38.62. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Prospect Capital Corporation [PSEC] a Reliable Buy?
Prospect Capital Corporation [PSEC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.