Should I Buy PSEC? PSEC 2026 Analysis

Should You Buy Prospect Capital Corp (PSEC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

2.740

1 Day change

52 Week Range

4.350

Analysis Updated At

2026/01/26

Prospect Capital Corp (PSEC) is not a strong buy for a beginner investor with a long-term strategy at this time. While insider buying is a positive catalyst, the company's financial performance is significantly weak, with sharp declines in revenue, net income, and EPS. Additionally, there are no strong technical or proprietary trading signals to suggest immediate upside potential. The options data and technical indicators suggest neutral sentiment, and there are no recent news or analyst upgrades to support a bullish case. Holding off on this investment is advisable until clearer positive signals emerge.

Technical Analysis

The MACD is slightly positive at 0.0133, indicating mild bullish momentum, but it is contracting. RSI is neutral at 64.573, and moving averages are converging, suggesting no clear trend. Key resistance levels are at 2.961 and 3.02, while support levels are at 2.77 and 2.711. Overall, the technical indicators do not provide a strong buy signal.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The open interest put-call ratio of 0.64 and option volume put-call ratio of 0.13 suggest a neutral to slightly bullish sentiment. However, the implied volatility percentile (6) and rank (7.6) indicate low volatility, which may limit significant price movement in the near term.

Technical Summary

Sell

Buy

Positive Catalysts

Insiders are buying, with a 149.74% increase in buying activity over the last month. This indicates some confidence from within the company.

Neutral/Negative Catalysts

The company's financial performance is significantly weak, with revenue down -661.76% YoY, net income down -129.13% YoY, and EPS down -121.05% YoY. There is no recent news or analyst upgrades to support a bullish case. Additionally, no recent congress trading data or major hedge fund activity is reported.

Financial Performance

In Q1 2026, the company's revenue dropped to $156.33M (-661.76% YoY), net income fell to $48.09M (-129.13% YoY), and EPS declined to 0.08 (-121.05% YoY). Gross margin increased slightly to 98.61%. Overall, the financials reflect significant weakness.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No recent analyst ratings or price target changes are available for PSEC. This lack of coverage may indicate limited interest or confidence from analysts.

Analyst Rating

Wall Street analysts forecast PSEC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSEC is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

Buy

Hold

Sell

Current: 2.740

Low

Averages

High

Current: 2.740

Low

Averages

High

Wells Fargo

Finian O'Shea

Underweight

downgrade

AI Analysis

2025-08-28

Reason

Wells Fargo

Finian O'Shea

Price Target

AI Analysis

2025-08-28

downgrade

Underweight

Reason

Wells Fargo analyst Finian O'Shea lowered the firm's price target on Prospect Capital to $2.50 from $3 and keeps an Underweight rating on the shares. The firm sees Prospect Capital's normalization in a constructive way, but also with still sharp NOI headwinds to navigate.

Wells Fargo

Finian O'Shea

Underweight

downgrade

2025-05-12

Reason

Wells Fargo

Finian O'Shea

Price Target

2025-05-12

downgrade

Underweight

Reason

Wells Fargo analyst Finian O'Shea lowered the firm's price target on Prospect Capital to $3 from $3.50 and keeps an Underweight rating on the shares. The firm notes the company declared its dividend through August, but at this point it only sees coverage through both a rebound in NAV and foregoing the income incentive fee.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for PSEC

Unlock Now

PSEC Should I Buy

PSEC Should I Buy

Should You Buy Prospect Capital Corp (PSEC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch