PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts rate PFLT a “Moderate Buy”: Three analysts recommend buying and three recommend holding, with an average 12-month price target of $9.80.
• PFLT opened at $7.39, near the lower end of its 52-week range, and recently reported quarterly EPS of $0.26, slightly below the $0.27 consensus estimate.
• The company announced a monthly dividend of $0.08 per share, representing an annualized yield of about 13%; however, its dividend payout ratio is elevated at 188.24%.

Shares of PennantPark Floating Rate Capital Ltd. (NYSE:PFLT - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the six analysts that are presently covering the stock, MarketBeat.com reports. Three research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $9.80.

Several research firms recently issued reports on PFLT. Zacks Research upgraded PennantPark Floating Rate Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. Truist Financial lowered their price target on PennantPark Floating Rate Capital from $10.00 to $9.00 and set a "buy" rating on the stock in a report on Tuesday, May 19th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of PennantPark Floating Rate Capital in a research note on Wednesday, August 5th.

PennantPark Floating Rate Capital Stock Performance

Shares of PennantPark Floating Rate Capital stock opened at $7.39 on Monday. PennantPark Floating Rate Capital has a fifty-two week low of $6.83 and a fifty-two week high of $10.30. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.19 and a current ratio of 0.19. The company has a market capitalization of $733.24 million, a P/E ratio of 14.49 and a beta of 0.76. The company has a fifty day moving average of $7.26 and a 200 day moving average of $7.97.

PennantPark Floating Rate Capital (NYSE:PFLT - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.27 by ($0.01). PennantPark Floating Rate Capital had a net margin of 18.53% and a return on equity of 10.24%. The business had revenue of $22.73 million for the quarter. On average, sell-side analysts anticipate that PennantPark Floating Rate Capital will post 1.06 earnings per share for the current fiscal year.

PennantPark Floating Rate Capital Cuts Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be given a dividend of $0.08 per share. The ex-dividend date is Friday, August 14th. This represents a c) dividend on an annualized basis and a dividend yield of 13.0%. PennantPark Floating Rate Capital's dividend payout ratio is currently 188.24%.

Hedge Funds Weigh In On PennantPark Floating Rate Capital

Several institutional investors have recently bought and sold shares of the stock. Millennium Management LLC boosted its holdings in shares of PennantPark Floating Rate Capital by 85.0% during the 1st quarter. Millennium Management LLC now owns 1,196,752 shares of the company's stock valued at $13,392,000 after purchasing an additional 550,011 shares during the last quarter. Jane Street Group LLC increased its holdings in shares of PennantPark Floating Rate Capital by 692.7% in the first quarter. Jane Street Group LLC now owns 319,736 shares of the company's stock worth $3,578,000 after purchasing an additional 279,399 shares during the last quarter. Cetera Investment Advisers lifted its position in shares of PennantPark Floating Rate Capital by 2.1% in the second quarter. Cetera Investment Advisers now owns 63,704 shares of the company's stock worth $658,000 after buying an additional 1,329 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of PennantPark Floating Rate Capital in the second quarter worth about $41,000. Finally, Quantbot Technologies LP purchased a new stake in shares of PennantPark Floating Rate Capital in the second quarter worth about $219,000. 19.77% of the stock is owned by hedge funds and other institutional investors.

About PennantPark Floating Rate Capital

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. It primarily invests in the United States and to a limited extent non-U.S. companies. The fund typically invests between $2 million and $20 million. The fund also invests in equity securities, such as preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments.

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