#6 - Prospect Capital (NASDAQ:PSEC)
Another BDC to consider is Prospect Capital (NASDAQ:PSEC). Like REITs it’s important for investors to understand the methodology behind the portfolio of every BDC. In the case of Prospect Capital the company provides financing to mid-market companies as well as some established companies.
By multiple metrics, PSEC stock looks undervalued at its current price of around $6.78. But that is contrary to the opinion of the analysts tracked by MarketBeat who deem the stock a Hold at this time. Nevertheless, the company has been successfully delivering a high return on equity (ROE).
There’s been no recent insider buying in the last 12 months. However, if you go back to the onset of the Covid-19 pandemic there was a significant amount of buying. In fact, the CEO purchased approximately 7 million shares himself. And these weren’t stock options or grants which makes them that much more impressive.
About Prospect Capital
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.
Read More - Current Price
- $4.82
- Consensus Rating
- Sell
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $4.50 (6.6% Downside)
