Stock Price & Analysis

Based on the analysis of PSEC's fundamentals and recent performance, it is recommended to sell PSEC stock. The company has a history of dividend cuts and underperformance, with a high debt-to-equity ratio and negative technical indicators.

PSEC stock is predicted to trade around $4.25 in 2025, supported by its high dividend yield and discounted valuation. The stock's price is expected to remain stable due to its attractive yield and potential for modest upside if the company's strategic shifts improve financial stability.

The S1 support level for PSEC Stock is $4.06 ,The R1 resistant level for PSEC Stock is $4.3.

As of the end of day on 2025-04-01, the price of PSEC Stock was $4.067.

The target price for PSEC Stock according to analyst rating is 4.00, with the highest price target at 4.00 and the lowest at 4.00. Analysts have a Moderate Sell rating on PSEC Stock overall.

The market cap of PSEC is $1.8B.

PSEC appears overvalued due to its high price-to-earnings (PE) ratio of 26.25 and EV/EBITDA of 15.08, which exceed industry averages. Its inconsistent revenue and net income, including a net loss in the last two quarters, raises concerns about profitability. While PSEC offers a high dividend yield of 12.1%, its history of dividend cuts and negative analyst sentiment (consensus Sell rating) suggest underlying issues. The stock's price of $4.25, trading below tangible book value, reflects investor caution. Overall, high valuation multiples and poor earnings quality indicate overvaluation despite its low price.

Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. The Company’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. It invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. It invests primarily in first and second lien secured loans and unsecured debt, which in some cases includes an equity component. It invests in debt and equity positions of structured credit, which are a form of securitization in which the cash flows of a portfolio of loans are pooled and passed on to different classes of owners in various tranches. It may also acquire controlling interests in companies in conjunction with making secured debt investments in such companies. Its investment adviser is Prospect Capital Management L.P.

Price Prediction for PSEC Stock by 2030

Based on current trends and analysis, PSEC stock is expected to trade between $4.50 and $6.00 by 2030, driven by its high dividend yield and potential recovery in business fundamentals. The stock's ability to stabilize its cash flow and improve its debt-to-equity ratio will be key factors influencing its long-term price movement.

PSEC has a total of 8 employees.