Prospect Capital: Yes, A 62% NAV Discount Is Seriously Exaggerated

The Asian Investor 33.03K Followers Follow Summary Prospect Capital reported Q4’26 NII of $0.15 per share, beating estimates, but faced portfolio contraction and declining net investment income vs. last year. PSEC’s dividend cut to $0.035 per share improved dividend coverage to over 130% in Q4, with stable asset quality evidenced by a 0.7% non-accrual percentage. The portfolio shift toward 72.5% first-lien loans enhances quality, potentially easing concerns over recent NAV declines and dividend cuts. PSEC trades at a steep 62% NAV discount; repricing is possible if the dividend remains stable and portfolio contraction is contained. ryasick/E+ via Getty Images Prospect Capital ( PSEC ) reported better-than-expected net investment income on Thursday with Q4’26 NII coming at $0.15 per share, beating the average Wall Street estimate by $0.04 per share. Prospect Capital, nonetheless, saw pressure on its portfolio size amid higher This article was written by The Asian Investor 33.03K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of PSEC, OBDC, ARCC, TRIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.