Raymond James has recently raised Prospect Capital Corporation (PSEC) stock to Mkt Perform rating, as announced on November 9, 2021, according to Finviz. Earlier, on June 25, 2020, Wells Fargo had initiated the stock to Underweight, setting a price target of $4.50. Raymond James also reduced Underperform rating. Additionally, Barclays reduced Underweight rating on January 22, 2019, with a target price of $6. Raymond James analysts, in their report published on August 30, 2017, also raised Mkt Perform rating for Prospect Capital Corporation’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Prospect Capital Corporation (PSEC) Stock Trading Recap
On Tuesday, Prospect Capital Corporation (PSEC) stock saw a decline, ending the day at $4.27 which represents a decrease of $-0.11 or -2.51% from the prior close of $4.38. The stock opened at $4.37 and touched a low of $4.25 during the day, reaching a high of $4.4. The volume of shares traded was 5.81 million exceeding the average volume of 2.93 million.
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PSEC Stock Performance and Moving Averages
In recent trading, Prospect Capital Corporation (PSEC) stock price has shown some volatility, fluctuating -16.76% over the last five trades and -16.44% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -23.61%, and it has plunged by -11.78% in the previous three months. Currently, PSEC is trading at -16.48%, -18.32%, and -20.91% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PSEC, a Financial sector stock, is trading -32.22% below its 52-week high but remains 2.89% above its 52-week low. The Average True Range (ATR) (14 days) of 0.15 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Prospect Capital Corporation’s Profitability and Valuation Ratios
Prospect Capital Corporation’s profitability metrics reveal strong financial health. The company currently boasts a gross margin of -23.61%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Prospect Capital Corporation’s market capitalization stands at $1.85 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 12.56, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 8.54. Additionally, the Price-to-Sales Ratio is 2.15, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.49, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 26.77% of Prospect Capital Corporation (PSEC)’s shares, while financial institutions hold 9.49%.
