We recently published a list of Insiders Are Spending Big: 15 Stocks Leading in March. In this article, we are going to take a look at where Prospect Capital Corporation (NASDAQ:PSEC) stands against other stocks that are receiving the most insider investment in March.
“The economy is strong overall and has made significant progress toward our goals over the past two years,” Federal Reserve Chair Jerome Powell said during a press conference Wednesday following the decision announcement. “Labor market conditions are solid, and inflation has moved closer to our 2% longer-run goal, though it remains somewhat elevated.”
The Fed announced on Wednesday that it would maintain the federal funds rate at its current range of 4.25% to 4.5%. It is also keeping its outlook at two rate cuts for the remainder of this year, writes CNBC.
However, the Fed also announced that “uncertainty around the economic outlook has increased.”
Following the announcement, the broader market index rose 1.08%, blue-chip companies gained 0.92% and the NASDAQ Composite jumped 1.41%.
Despite political and economic uncertainty, some analysts remain bullish on AI’s growth. Insider trading draws attention in such times, as executives have unique company insights. For example, when a CEO or CFO buys stock, it may suggest confidence in the company’s future.
However, insider selling doesn’t always signal a lack of faith—it may be due to personal financial needs or asset diversification. Executives often use pre-set plans, like 10b5-1, to ensure transparency and avoid any perception of misconduct.
While insider trading can offer hints, it should be viewed alongside other factors like financial health, market trends, and industry shifts.
Our Methodology
Using Insider Monkey’s insider trading screener, we identified stocks with the highest insider purchase values in March.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
For each stock, we provide details on the total value of insider purchases this month and the company’s current market capitalization.
A vibrant high-tech office space, representing the company’s later stage investments.
Prospect Capital Corporation (NASDAQ:PSEC)
Total Value of Insider Purchases In March: $12.73 million
Market Capitalization: $1.9 billion
Prospect Capital is a business development company that invests in middle-market and later-stage businesses through secured loans, mezzanine debt, private equity, and real estate financing. Its diversified portfolio includes industries such as manufacturing, energy, healthcare, and media. On January 31, 2025, Prospect Capital announced a $65 million investment in Taos Footwear via senior secured loans and preferred equity. It is one of the 12 cash-rich penny stocks to buy according to hedge funds.
For the fiscal quarter ended December 31, 2024, Prospect Capital reported a net loss of $30.99 million, compared to a net loss of $51.44 million in the same period of 2023. The company has long-term debts that will be paid off over the next 27 years. As of December 2024, Prospect Capital had $1.9 billion in available cash and credit, and $4.8 billion of its assets were free from any debt or obligations.
In March, two insiders, including the company’s CEO, acquired a total of $12.73 million worth of Prospect Capital shares at an average price of $4.27 per share. Year-to-date the stock is down 0.93%, trading at $4.27 per share. Over the past 12 months, Prospect Capital shares declined 21.79%.
According to MarketBeat, one analyst gave Prospect Capital a “Sell” rating with a price target of $4.50, indicating a potential upside of 5.26% from the latest price.
Overall, PSEC ranks 12th on our list of stocks that are receiving the most insider investment in March. While we acknowledge the potential of PSEC, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSEC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
