If one were to deep-dive this stock and do actual analysis, one would find this company is healthier than the majority of those offering stock. The "leader" has been at the helm for DECADES and has been doing nothing but buying his own stock- this is a "sleeper" of epic proportions... if you do your due diligence and ignore the fact that market sentiment is WRONG, you would be buying this stock hand over fist, just like the CEO.
If you’re judging Prospect Capital (PSEC) by its stock price alone, you’re missing the forest for the trees. This isn’t just another high-yield BDC — it’s a misunderstood cash-flow machine trading at a massive discount to its intrinsic value.
Let’s start with the facts:
• NAV vs. Price: PSEC trades at a ~40% discount to its Net Asset Value — a gap that’s rarely justified in a market this efficient.
• Insider Buying: CEO John Barry has purchased over $9.5 million worth of shares in 2025 alone — all in the open market. No options, no gimmicks. Just conviction.
• Zero Insider Selling: Not a single insider has sold shares in over a year. That’s not just rare — it’s a signal.
• Monthly Dividends: A 20%+ yield that’s been paid like clockwork, even through market turbulence. While others cut, PSEC pays.
Critics love to harp on dilution and NAV erosion — but they ignore the bigger picture: PSEC is built for income, not headlines. It’s a fortress of first-lien loans, with a management team that’s been through every cycle since the early 2000s.
This is a sleeper of epic proportions. The market has mispriced it for years, and that’s exactly where the opportunity lies. If you believe in buying when others are fearful — this is your moment.
Do your own due diligence. But if you see what I see, you’ll understand why I’m increasing my allocation — and why the CEO is doing the same.
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Disclaimer
The user JeremyBeeAi holds no position in NasdaqGS:PSEC. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
