PSEC Stock Analysis: Buy, Sell, or Hold?
PSEC - Prospect Capital Corporation
$2.77
0.03 (1.09%)
▲
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 09, 2026
7d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: PSEC shows positive signals but monitor for confirmation. Market pricing in 4.3% growth. Moderate conviction.
💡 BUY OPPORTUNITY: PSEC shows positive signals but monitor for confirmation. Market pricing in 4.3% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$2.10
Based on -2.7% avg growth
INTRINSIC VALUE TODAY
$1.31
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 6.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: PSEC is currently trading at $2.77, which is considered fair relative to its 30-day fair value range of $2.58 to $2.87. From a valuation perspective, the stock is trading at a premium (Forward PE: 7.3) compared to its historical average (6.4). At these levels, the market is pricing in 4.3% annual earnings growth.
Technical Outlook: Technically, PSEC is in a strong downtrend. The price is currently testing key support at $2.69. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, PSEC is in a strong downtrend. The price is currently testing key support at $2.69. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$2.58 -
$2.87
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
68.6%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($2.50)
- BULLISH: Expecting earnings turnaround to 4.3% growth with -19.7% revenue growth
Fair Price Analysis
30-Day Fair Range
$2.58 -
$2.87
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$2.69
Resistance Level
$2.96
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
7.29
Wall Street Target
$2.50
(-9.7%)
Revenue Growth (YoY)
-19.7%
Earnings Growth (YoY)
-78.2%
Profit Margin
-37.9%
Valuation Premium vs History
+4.3% premium
PE vs Historical
7.3 vs 6.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.3%
(market-implied from PE analysis)
1-Year Target
$2.89
(+4%)
2-Year Target
$3.01
(+9%)
3-Year Target
$3.14
(+14%)
3-Yr Target (if PE normalizes)
(PE: 7→6)
PE COMPRESSION
$2.76
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: -9.5%)
$6.28
(+127%)
Base:
(SPY PE: 7.3, Growth: -9.5%)
$2.05
(-26%)
Bear:
(PE: 6.2, Growth: -9.5%)
$1.74
(-37%)
Last updated: February 01, 2026 6:30 AM ET
Data refreshes hourly during market hours. Next update: 7:30 AM
Data refreshes hourly during market hours. Next update: 7:30 AM
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Technical Signals Check
Is PSEC showing a specific setup today?
Insider Activity (6 Months)
6
Buys
0
Sells
+
Net
INSIDERS BUYING
Recent Transactions
M Grier Eliasek
BUY
370000 shares
2025-09-25
John F Barry
BUY
925000 shares
2025-09-25
John F Barry
BUY
741158 shares
2025-09-24
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