Prospect Capital Intrinsic Value Calculation – Stock Traders Take Bearish Stance on Prospect Capital Co. With Large Volume of Put Options Purchases

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Prospect Capital ($NASDAQ:PSEC) Co., a financial services company based in New York City, recently saw a significant amount of activity from stock traders on Thursday. The traders purchased a large volume of Put Options for the company, indicating a bearish stance on the stock. Put Options are a type of derivative security used to hedge against losses in stocks, as an investor can purchase the option to sell the stock at a later date at a set price. With the increase in Put Options purchases, it suggests that these stock traders believe Prospect Capital’s stock price will fall in the near future.

Prospect Capital Co. is a finance and investment management company that focuses on private equity, growth capital, mezzanine debt and venture capital investments. The company’s stock has been on an uptrend in recent weeks, following the announcement of its second quarter earnings results and the release of several favorable analyst reports.

Share Price

This bearish sentiment from investors indicates that traders are taking a cautious stance on the stock. The large volume of put option purchases suggest that investors are wary of the company’s prospects, as these options are used to protect against potential losses in the stock. As such, investors may want to wait for further news before taking any long-term positions in the stock. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Prospect Capital. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Prospect Capital. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Prospect Capital. More…

Key Ratios Snapshot

Some of the financial key ratios for Prospect Capital are shown below. More…

Analysis – Prospect Capital Intrinsic Value Calculation

At GoodWhale, we’ve taken a deep dive into PROSPECT CAPITAL‘s financials, and we’re pleased to report our findings. Our proprietary Valuation Line has calculated that the fair value of PROSPECT CAPITAL’s share is around $7.0. At the time of this writing, PROSPECT CAPITAL’s stock is traded at $6.3, making it a fair price undervalued by 9.9%. This presents an interesting opportunity for investors and suggests that PROSPECT CAPITAL may be a good option for those looking for a relatively low-risk investment. More…

Peers

The company was founded in 1988 and is headquartered in New York, NY. As of December 31, 2018, Prospect Capital had $6.8 billion of assets under management. Reinet Investments SCA is a Luxembourg-based closed-end investment company. The Company’s investment objective is to provide shareholders with long-term capital growth through a diversified portfolio of investments in quoted and unquoted companies. PennantPark Investment Corporation is a business development company specializing in investments in middle market companies. The firm focuses on investments in the form of subordinated debt, equity, and mezzanine financing. It invests in various sectors, which include business services, healthcare, energy, media, and commercial and industrial services. The firm was founded in 2007 and is headquartered in New York, New York. Spice Private Equity AG is a Germany-based private equity firm focused on small and medium sized companies. The firm prefers to make investments in companies with revenues between EUR 10 million and EUR 200 million.

– Reinet Investments SCA ($LTS:0JR9)

Reinet Investments SCA is a publicly traded company with a market capitalization of 2.91 billion as of 2022. The company is engaged in a variety of businesses, including insurance, real estate, and private equity. It is headquartered in Luxembourg.

Summary

Investors have been showing increased interest in Prospect Capital recently, evidenced by a large volume of put options being traded on Thursday. Analysts suggest that the activity is a sign of investors looking for a profit on the stock price’s waning momentum. As a result, it’s important to watch out for any further volatility surrounding Prospect Capital in the coming weeks and months. Additionally, investors should also consider the company’s fundamentals and financials when making any decisions about investing in Prospect Capital.