PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Analyst consensus: Seven brokerages rate PFLT an overall "Buy" with an average 12‑month price target of about $10.42.
• Insider and institutional activity: Director Jose A. Briones bought 5,895 shares at $8.48, raising his stake to 342,313 shares; corporate insiders own ~1.0% and institutions own ~19.8% of the stock.
• Dividend and valuation: PFLT pays a monthly dividend of $0.1025 (annualized yield ~15.1%) while carrying a payout ratio of 361.76%; the shares trade near $8.13 with a PE of 5.81 and a market cap of about $807M.

Shares of PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT - Get Free Report) have received an average rating of "Buy" from the seven brokerages that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $10.4167.

PFLT has been the subject of several recent analyst reports. Maxim Group set a $10.50 price objective on PennantPark Floating Rate Capital in a research note on Wednesday, February 11th. Keefe, Bruyette & Woods lowered 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.

Insider Activity

In other PennantPark Floating Rate Capital news, Director Jose A. Briones purchased 5,895 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The stock was acquired 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 $2,902,814.24. This represents a 1.75% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of PFLT. Allworth Financial LP lifted its stake in shares of PennantPark Floating Rate Capital by 1,603.7% during the second quarter. Allworth Financial LP now owns 2,777 shares of the asset manager's stock valued at $29,000 after acquiring an additional 2,614 shares during the period. International Assets Investment Management LLC acquired a new position in PennantPark Floating Rate Capital during the 4th quarter valued at about $33,000. Quarry LP bought a new position in shares of PennantPark Floating Rate Capital in the 3rd quarter valued at about $36,000. State of Alaska Department of Revenue acquired a new stake in shares of PennantPark Floating Rate Capital during the 3rd quarter worth approximately $41,000. Finally, Northwestern Mutual Wealth Management Co. acquired a new stake in shares of PennantPark Floating Rate Capital during the 2nd quarter worth approximately $41,000. Institutional investors and hedge funds own 19.77% of the company's stock.

PennantPark Floating Rate Capital Trading Down 2.5%

Shares of PFLT opened at $8.13 on Friday. The company has a current ratio of 0.15, a quick ratio of 0.15 and a debt-to-equity ratio of 0.57. The stock has a market cap of $806.64 million, a PE ratio of 5.81 and a beta of 0.77. PennantPark Floating Rate Capital has a 1 year low of $7.97 and a 1 year high of $11.46. The stock has a 50 day simple moving average of $9.08 and a 200-day simple moving average of $9.25.

PennantPark Floating Rate Capital Announces Dividend

The firm also recently disclosed a monthly dividend, which was paid on Monday, March 2nd. Shareholders of record on Tuesday, February 17th were given a $0.1025 dividend. The ex-dividend date was Tuesday, February 17th. This represents a c) annualized dividend and a yield of 15.1%. PennantPark Floating Rate Capital's payout ratio is presently 361.76%.

PennantPark Floating Rate Capital Company Profile

PennantPark Floating Rate Capital, Inc NASDAQ: PFLT is a closed-end management investment company organized as a business development company (BDC) under the Investment Company Act of 1940. The firm's primary objective is to generate current income and, secondarily, capital appreciation for its shareholders through debt and equity investments in middle-market companies. PennantPark Floating Rate Capital focuses on floating-rate instruments to help mitigate interest-rate risk and align cash flows with its dividend strategy.

The company's portfolio is concentrated in senior secured loans, second-lien debt, mezzanine securities and, from time to time, equity investments.

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