Prospect Capital Q4 net investment income per share falls

• Portfolio rotation - The company increased its focus on first lien senior secured middle market loans and reduced exposure to second lien and subordinated structured notes.
• Asset exits - Prospect exited targeted lower-yielding equity-linked assets, including real estate properties and certain corporate investments.
• AI and automation initiatives - The company said adoption of AI and automation at both the corporate and portfolio company level is aimed at enhancing revenues and cost efficiencies.

The one available analyst rating on the shares is "sell". The average consensus recommendation for the closed end funds peer group is "hold".

Wall Street's median 12-month price target for Prospect Capital Corp is $2.00, about 11.1% below its August 19 closing price of $2.25. The stock recently traded at 6 times the next 12-month earnings versus a P/E of 6 three months ago.

Prospect Capital said fiscal fourth-quarter net investment income per share fell year over year. The company also posted a net loss to common shareholders for fiscal Q4, and net asset value per share declined to from a year earlier.