Prospect Capital (RK8) Stock Price & Analysis
RK8 Stock Chart & Stats
- Day’s Range
- EUR 1.42 - EUR 1.42
- 52-Week Range
- EUR 1.29 - EUR 2.60
- Previous Close
- EUR 1.36
- Volume
- 0
- Average Volume (3M)
- 1,472
- Market Cap
- EUR 769.55M
- Enterprise Value
- EUR 4.58B
- Total Cash (Recent Filing)
- EUR 43.57M
- Total Debt (Recent Filing)
- EUR 1.86B
- Price to Earnings (P/E)
- 28.7
- Beta
- 0.70
- Next Earnings
- Nov 11, 2026 (Est.)
- EPS Estimate
- 0.09
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- 29.94%
Bulls Say, Bears Say
Bulls Say
Strong Credit Quality
Superior portfolio credit metrics support the durability of investment income and reduce expected loss risk. Lower borrower leverage, strong interest coverage, and a very low realized loss rate indicate disciplined underwriting that can remain valuable through changing credit conditions.
Secured Portfolio And Lower Risk Exposure
The heavy weighting toward senior secured assets improves recovery prospects if borrowers experience stress, while the reduction of subordinated structured notes lowers exposure to higher-risk instruments. This portfolio mix supports more resilient asset values and income over the next several quarters.
Liquidity And Balance-sheet Flexibility
Significant liquidity and a large pool of unencumbered assets give PSEC capacity to meet obligations, fund new investments, and manage repayments without relying solely on asset sales. Diversified bank commitments and long-dated liabilities further support financial flexibility.
Bears Say
Volatile Earnings Quality
Large swings in revenue and recurring losses in recent periods make earnings power difficult to forecast. Although results recovered into 2026, the uneven record may constrain confidence in sustainable profitability and makes future distributions more sensitive to portfolio performance.
High Unsecured Funding Mix
A high reliance on unsecured funding can increase refinancing and credit sensitivity if capital markets become less receptive or funding costs rise. Even with diversified access, this structure may pressure investment spreads and reduce flexibility during a stressed lending cycle.
Middle-market Concentration
Concentration in middle-market lending ties portfolio performance closely to the financial health of one borrower segment. A broad downturn affecting these companies could raise defaults, reduce investment values, and limit new deployment opportunities across much of the portfolio.
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Prospect Capital Stock Smart Score
Company Description
Prospect Capital
Prospect Capital Corporation operates as a Business Development Company (BDC), providing diverse financing solutions predominantly to the middle market. The firm engages in a broad spectrum of investment activities, including growth capital, leveraged buyouts, acquisitions, recapitalizations, refinancing, and turnaround situations for mature, emerging, and later-stage companies. Its specialized offerings encompass mezzanine financing, subordinated debt tranches of collateralized loan obligations (CLOs), cash flow term loans, marketplace lending, and bridge transactions. Beyond corporate finance, Prospect Capital also allocates capital to real estate, with a specific focus on multi-family residential assets. The company deploys a variety of investment instruments, such as secured debt (including senior, unitranche, first-lien, and second-lien), private debt, mezzanine debt, and direct equity, primarily targeting private and microcap public businesses. Its investment strategy involves both primary originations and the acquisition of secondary loan portfolios, supporting situations like private equity-backed financings, corporate expansion, dividend recapitalizations, and real estate ventures. The firm intentionally concentrates on small and medium-sized private companies, rather than large public corporations. Prospect Capital maintains a diversified investment portfolio spanning numerous industries, with notable expertise in the energy and industrial sectors. Its extensive reach covers areas from aerospace and financial services to healthcare, technology, and consumer goods. Geographically, its operations are concentrated within the United States and Canada. Typically, PSEC commits between $10 million and $500 million per transaction. It seeks out companies with an EBITDA between $5 million and $150 million, sales figures ranging from $25 million to $500 million, and an enterprise value between $5 million and $1000 million. The BDC is also open to co-investing in larger opportunities. Prospect Capital often aims for control acquisitions by participating across various levels of a company's capital structure and engages in sole, agented, club, or syndicated deal arrangements.
- Sector
- Financial
- Industry
- Asset Management
- CEO
- John Francis Barry
- Employees
- 130
- Website
- www.prospectstreet.com
- Address
- 10 East 40th Street, New York City, NY, 10016, US
Prospect Capital (RK8) Earnings & Revenues
RK8 Earnings Call
Earnings Call SentimentPositive
The call emphasized strong credit performance, liquidity, long-term track record, a successful exit (Valley Electric) with high realized returns, a meaningful reduction in higher-risk exposures, and active initiatives to capture operational upside via AI. Most financial and portfolio metrics (low nonaccruals, low realized loss rate, high percentage of senior secured loans, significant unencumbered assets, diversified funding) were presented positively. The primary negatives were a flat quarter-over-quarter NII, a high proportion of unsecured funding (though diversified), concentration in middle market lending, limited software exposure, and only modest net originations in the quarter. Overall, the positive operational and credit metrics and the successful portfolio exit and liquidity position outweigh the limited near-term growth and concentration risks.
View all DE:RK8 earnings summariesRK8 Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 6 | 5 | 11 |
| Technical Analysis | 2 | 5 | 3 |
| Moving Averages | 4 | 0 | 8 |
