PennantPark Floating Rate Capital Ltd. $PFLT Stock Position Lifted by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC increased its stake in PennantPark Floating Rate Capital (PFLT) by 12.4% in Q4, adding 512,528 shares to own 4,643,958 shares (about 4.68% of the company) valued at roughly $44.26 million, making PFLT its 7th-largest holding.
• PennantPark declared a monthly dividend of $0.1025 payable May 1 (record/ex-dividend date April 15), implying a 14.7% yield but with a very high payout ratio of 361.76%.
• Insiders bought shares recently — CFO Richard T. Allorto, Jr. purchased 15,000 shares at $8.15 and director Jose A. Briones bought 5,895 shares at $8.48 — while the company reported Q4 EPS of $0.27, missing estimates of $0.30.

Sound Income Strategies LLC raised its stake in shares of PennantPark Floating Rate Capital Ltd. (NYSE:PFLT - Free Report) by 12.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 4,643,958 shares of the company's stock after purchasing an additional 512,528 shares during the quarter. PennantPark Floating Rate Capital makes up about 2.1% of Sound Income Strategies LLC's holdings, making the stock its 7th biggest holding. Sound Income Strategies LLC owned about 4.68% of PennantPark Floating Rate Capital worth $44,257,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in PFLT. Quarry LP purchased a new position in PennantPark Floating Rate Capital during the 3rd quarter valued at $36,000. State of Alaska Department of Revenue bought a new stake in shares of PennantPark Floating Rate Capital during the 3rd quarter valued at $41,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of PennantPark Floating Rate Capital during the 2nd quarter valued at $41,000. Global Retirement Partners LLC boosted its holdings in shares of PennantPark Floating Rate Capital by 32.1% during the 3rd quarter. Global Retirement Partners LLC now owns 5,188 shares of the company's stock valued at $46,000 after buying an additional 1,260 shares in the last quarter. Finally, BNP Paribas Financial Markets bought a new stake in shares of PennantPark Floating Rate Capital during the 2nd quarter valued at $55,000. 19.77% of the stock is owned by hedge funds and other institutional investors.

PennantPark Floating Rate Capital Stock Performance

Shares of PFLT stock opened at $8.40 on Tuesday. The stock has a market cap of $832.95 million, a PE ratio of 24.69 and a beta of 0.75. The company's fifty day moving average price is $8.52 and its 200-day moving average price is $8.94. PennantPark Floating Rate Capital Ltd. has a 12 month low of $7.68 and a 12 month high of $10.88. The company has a current ratio of 0.15, a quick ratio of 0.15 and a debt-to-equity ratio of 0.92.

PennantPark Floating Rate Capital (NYSE:PFLT - Get Free Report) last announced its quarterly earnings results on Monday, February 9th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.30 by ($0.03). The firm had revenue of $12.72 million during the quarter. PennantPark Floating Rate Capital had a return on equity of 9.72% and a net margin of 13.03%.

PennantPark Floating Rate Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Friday, May 1st. Shareholders of record on Wednesday, April 15th will be issued a $0.1025 dividend. The ex-dividend date of this dividend is Wednesday, April 15th. This represents a c) annualized dividend and a yield of 14.7%. PennantPark Floating Rate Capital's payout ratio is 361.76%.

Analyst Ratings Changes

A number of analysts have recently commented on PFLT shares. Keefe, Bruyette & Woods dropped their target price on shares of PennantPark Floating Rate Capital from $10.50 to $10.00 and set an "outperform" rating on the stock in a report on Thursday, February 12th. Weiss Ratings restated a "hold (c-)" rating on shares of PennantPark Floating Rate Capital in a report on Monday, December 29th. Wall Street Zen upgraded shares of PennantPark Floating Rate Capital from a "sell" rating to a "hold" rating in a report on Saturday, March 28th. Finally, Maxim Group set a $10.50 target price on shares of PennantPark Floating Rate Capital in a report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, PennantPark Floating Rate Capital has an average rating of "Moderate Buy" and an average price target of $10.42.

Insider Activity

In other news, CFO Richard T. Allorto, Jr. bought 15,000 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was acquired at an average cost of $8.15 per share, with a total value of $122,250.00. Following the completion of the acquisition, the chief financial officer owned 25,000 shares of the company's stock, valued at approximately $203,750. This represents a 150.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jose A. Briones bought 5,895 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was purchased at an average cost of $8.48 per share, with a total value of $49,989.60. Following the completion of the acquisition, the director directly owned 342,313 shares of the company's stock, valued at approximately $2,902,814.24. The trade was a 1.75% increase in their position. The disclosure for this purchase is available in the SEC filing. 1.00% of the stock is currently owned by insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.