Sound Income Strategies LLC Sells 2,291,663 Shares of PennantPark Floating Rate Capital Ltd. $PFLT

Key Points

• Sound Income Strategies reduced its PennantPark Floating Rate Capital stake by 43.9%, selling 2.29 million shares during the third quarter and retaining 2.93 million shares worth approximately $19.6 million.
• PFLT shares rose 0.1% to $6.68, near the low end of their 52-week range. The company recently reported quarterly EPS of $0.26, slightly below analyst expectations.
• PennantPark declared a monthly dividend of $0.08 per share, equal to an annualized $0.96 payout and a 14.4% dividend yield; analysts maintain a “Moderate Buy” consensus with a $9.60 target price.

Sound Income Strategies LLC cut its holdings in PennantPark Floating Rate Capital Ltd. (NYSE:PFLT - Free Report) by 43.9% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,930,953 shares of the company's stock after selling 2,291,663 shares during the quarter. Sound Income Strategies LLC owned about 2.95% of PennantPark Floating Rate Capital worth $19,579,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Integrated Wealth Concepts LLC bought a new position in shares of PennantPark Floating Rate Capital during the 2nd quarter valued at about $40,000. NewEdge Advisors LLC raised its holdings in shares of PennantPark Floating Rate Capital by 264.2% in the 2nd quarter. NewEdge Advisors LLC now owns 17,167 shares of the company's stock worth $128,000 after purchasing an additional 12,453 shares in the last quarter. Squarepoint Ops LLC lifted its stake in PennantPark Floating Rate Capital by 80.0% during the second quarter. Squarepoint Ops LLC now owns 33,287 shares of the company's stock valued at $249,000 after purchasing an additional 14,795 shares during the last quarter. Van ECK Associates Corp lifted its stake in PennantPark Floating Rate Capital by 37.0% during the second quarter. Van ECK Associates Corp now owns 2,473,706 shares of the company's stock valued at $18,503,000 after purchasing an additional 668,394 shares during the last quarter. Finally, Glenview Trust Co bought a new stake in PennantPark Floating Rate Capital during the second quarter worth approximately $80,000. 19.77% of the stock is owned by institutional investors and hedge funds.

PennantPark Floating Rate Capital Stock Up 0.1%

NYSE:PFLT traded up $0.01 on Friday, hitting $6.68. 1,083,574 shares of the company's stock traded hands, compared to its average volume of 1,078,621. The company has a market cap of $663.27 million, a PE ratio of 13.11 and a beta of 0.80. PennantPark Floating Rate Capital Ltd. has a 1 year low of $6.58 and a 1 year high of $9.75. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 0.94. The firm has a 50-day moving average price of $7.19 and a 200-day moving average price of $7.70.

PennantPark Floating Rate Capital (NYSE:PFLT - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.27 by ($0.01). PennantPark Floating Rate Capital had a return on equity of 10.24% and a net margin of 18.53%.The company had revenue of $66.09 million during the quarter. Equities analysts anticipate that PennantPark Floating Rate Capital Ltd. will post 1.06 EPS for the current fiscal year.

PennantPark Floating Rate Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 15th will be paid a dividend of $0.08 per share. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 14.4%. PennantPark Floating Rate Capital's dividend payout ratio (DPR) is 188.24%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Zacks Research upgraded shares of PennantPark Floating Rate Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. UBS Group reiterated a "buy" rating and set a $8.50 price objective (down from $9.50) on shares of PennantPark Floating Rate Capital in a research report on Friday. Finally, Weiss Ratings downgraded PennantPark Floating Rate Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $9.60.

PennantPark Floating Rate Capital Company Profile

PennantPark Floating Rate Capital Ltd. NYSE: PFLT is a business development company that invests in privately held, middle-market businesses. The company seeks to generate current income and preserve capital primarily through investments in floating-rate, senior secured loans.

PennantPark Floating Rate Capital's portfolio may also include second-lien loans, subordinated debt and equity-related investments. Its investments are generally made in companies across a range of industries, with an emphasis on providing financing to businesses that may not have access to traditional public debt markets.

The company was established in 2011 and is externally managed by PennantPark Investment Advisers, LLC, an affiliate of PennantPark Investment Corporation.

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