PennantPark Floating Rate Capital Ltd. $PFLT Stake Boosted by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC increased its PennantPark Floating Rate Capital stake by 6.4% in Q1, bringing its holdings to 4.94 million shares worth about $39.6 million and making PFLT its 9th-largest position.
• Wall Street sentiment is mixed but leans positive, with a consensus rating of Moderate Buy and an average price target of $9.80, though some analysts recently cut ratings or lowered targets.
• PFLT reported Q1 EPS of $0.27, slightly below estimates, and also announced a special dividend of $0.0033 per share payable on August 3.

Sound Income Strategies LLC grew its position in PennantPark Floating Rate Capital Ltd. (NYSE:PFLT - Free Report) by 6.4% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,940,809 shares of the company's stock after purchasing an additional 296,851 shares during the quarter. PennantPark Floating Rate Capital makes up about 1.9% of Sound Income Strategies LLC's investment portfolio, making the stock its 9th largest holding. Sound Income Strategies LLC owned approximately 4.98% of PennantPark Floating Rate Capital worth $39,576,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of PFLT. Northwestern Mutual Wealth Management Co. increased its stake in PennantPark Floating Rate Capital by 4,538.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 185,546 shares of the company's stock worth $1,768,000 after buying an additional 181,546 shares in the last quarter. Van ECK Associates Corp raised its holdings in PennantPark Floating Rate Capital by 7.4% during the third quarter. Van ECK Associates Corp now owns 2,533,205 shares of the company's stock valued at $22,520,000 after acquiring an additional 174,630 shares during the period. Altshuler Shaham Ltd lifted its position in shares of PennantPark Floating Rate Capital by 44.1% in the fourth quarter. Altshuler Shaham Ltd now owns 1,320,156 shares of the company's stock valued at $12,238,000 after acquiring an additional 404,117 shares in the last quarter. Legal & General Group Plc lifted its position in shares of PennantPark Floating Rate Capital by 14.0% in the fourth quarter. Legal & General Group Plc now owns 687,570 shares of the company's stock valued at $6,377,000 after acquiring an additional 84,231 shares in the last quarter. Finally, UBS Group AG boosted its stake in shares of PennantPark Floating Rate Capital by 5.5% in the fourth quarter. UBS Group AG now owns 1,367,442 shares of the company's stock worth $12,676,000 after acquiring an additional 71,372 shares during the period. 19.77% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on PFLT. Zacks Research cut PennantPark Floating Rate Capital from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 12th. Wall Street Zen raised PennantPark Floating Rate Capital from a "sell" rating to a "hold" rating in a report on Saturday, March 28th. Truist Financial dropped their price target on PennantPark Floating Rate Capital from $10.00 to $9.00 and set a "buy" rating for the company in a research note on Tuesday, May 19th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PennantPark Floating Rate Capital in a report on Friday, May 8th. Finally, Citizens Jmp cut their price objective on shares of PennantPark Floating Rate Capital from $11.00 to $10.00 and set a "market outperform" rating for the company in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, PennantPark Floating Rate Capital has a consensus rating of "Moderate Buy" and an average price target of $9.80.

Insider Activity

In other PennantPark Floating Rate Capital news, Director Jose A. Briones purchased 5,770 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was purchased at an average price of $8.67 per share, with a total value of $50,025.90. Following the acquisition, the director owned 348,083 shares in the company, valued at approximately $3,017,879.61. The trade was a 1.69% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.00% of the company's stock.

PennantPark Floating Rate Capital Stock Performance

NYSE PFLT opened at $7.46 on Friday. The stock has a market capitalization of $740.66 million, a PE ratio of 12.04 and a beta of 0.76. The business has a 50 day simple moving average of $8.17 and a two-hundred day simple moving average of $8.58. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.18 and a quick ratio of 0.18. PennantPark Floating Rate Capital Ltd. has a 1-year low of $7.03 and a 1-year high of $10.88.

PennantPark Floating Rate Capital (NYSE:PFLT - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.28 by ($0.01). PennantPark Floating Rate Capital had a net margin of 23.08% and a return on equity of 9.95%. The firm had revenue of $44.81 million for the quarter. On average, research analysts predict that PennantPark Floating Rate Capital Ltd. will post 1.08 EPS for the current fiscal year.

PennantPark Floating Rate Capital Announces Dividend

The firm also recently announced a special dividend, which will be paid on Monday, August 3rd. Stockholders of record on Wednesday, July 15th will be issued a $0.0033 dividend. The ex-dividend date is Wednesday, July 15th. PennantPark Floating Rate Capital's payout ratio is 154.84%.

PennantPark Floating Rate Capital Company Profile

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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