Insider Buying: PennantPark Investment (NASDAQ:PNNT) CFO Purchases 15,000 Shares of Stock

Key Points

• CFO insider purchase: Richard Allorto Jr. bought 15,000 shares on March 11 at an average $4.88 per share (total $73,200), raising his stake to 30,000 shares—a 100% increase—according to an SEC filing.
• Special dividend announced: PennantPark declared a special $0.04 dividend payable April 1 to shareholders of record March 16 (ex-dividend March 16); the article reports a dividend yield of 984.0%.
• Stock and analyst backdrop: PNNT traded around $4.66 near its 52-week low ($4.64), has a market cap of about $304M, and holds an average analyst rating of "Hold" with an average target of $5.75 amid recent target cuts.

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) CFO Richard Allorto, Jr. bought 15,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were purchased at an average cost of $4.88 per share, with a total value of $73,200.00. Following the acquisition, the chief financial officer directly owned 30,000 shares of the company's stock, valued at approximately $146,400. This trade represents a 100.00% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

PennantPark Investment Stock Performance

NASDAQ:PNNT traded down $0.12 during midday trading on Thursday, hitting $4.66. The company's stock had a trading volume of 678,036 shares, compared to its average volume of 745,805. PennantPark Investment Co. has a fifty-two week low of $4.64 and a fifty-two week high of $7.53. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.47 and a quick ratio of 0.47. The firm has a market cap of $303.95 million, a P/E ratio of 17.90 and a beta of 0.65. The firm's 50 day moving average is $5.54 and its 200-day moving average is $6.14.

PennantPark Investment Dividend Announcement

The firm also recently disclosed a special dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Monday, March 16th will be paid a $0.04 dividend. The ex-dividend date is Monday, March 16th. This represents a dividend yield of 984.0%. PennantPark Investment's dividend payout ratio is presently 123.08%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on PNNT shares. Keefe, Bruyette & Woods decreased their target price on shares of PennantPark Investment from $5.50 to $5.00 and set an "underperform" rating for the company in a research report on Friday, February 13th. Truist Financial cut their price target on PennantPark Investment from $8.00 to $7.00 and set a "buy" rating on the stock in a research report on Wednesday, November 26th. Compass Point raised PennantPark Investment from a "sell" rating to a "neutral" rating and decreased their price objective for the company from $5.75 to $5.50 in a report on Wednesday, December 3rd. Finally, JPMorgan Chase & Co. lowered their target price on PennantPark Investment from $6.50 to $5.50 and set a "neutral" rating on the stock in a research note on Wednesday, November 26th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $5.75.

Institutional Trading of PennantPark Investment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC raised its position in shares of PennantPark Investment by 100.6% in the second quarter. EverSource Wealth Advisors LLC now owns 3,695 shares of the asset manager's stock worth $25,000 after acquiring an additional 1,853 shares during the period. BNP Paribas Financial Markets purchased a new position in shares of PennantPark Investment during the 3rd quarter valued at approximately $32,000. First Horizon Advisors Inc. acquired a new stake in PennantPark Investment in the 2nd quarter valued at $35,000. Advisory Services Network LLC acquired a new stake in PennantPark Investment in the 3rd quarter valued at $38,000. Finally, Caitong International Asset Management Co. Ltd increased its holdings in PennantPark Investment by 127,180.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 6,364 shares of the asset manager's stock worth $38,000 after acquiring an additional 6,359 shares in the last quarter. Institutional investors and hedge funds own 26.62% of the company's stock.

PennantPark Investment Company Profile

PennantPark Investment Corporation is a publicly traded closed-end management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Since its formation in 2006, PennantPark has focused on providing customized financing solutions to middle-market companies across the United States. The firm’s investment advisory services are provided by PennantPark Investment Advisers, LLC, which sources and structures transactions tailored to the unique needs of its portfolio companies.

The company’s core strategy centers on debt and equity investments in U.S.-based businesses, typically those with annual revenues between $10 million and $200 million.

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