PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) Sees Large Growth in Short Interest

Key Points

• PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) experienced a substantial increase in short interest of 35.6%, totaling 1,280,000 shares by mid-August.
• The company recently declared a monthly dividend of $0.1025 per share, representing an annualized yield of 12.0% and a payout ratio of 146.43%.
• Analyst ratings for PennantPark are mixed, with a consensus average rating of "Moderate Buy" and a price target averaging $10.88.

PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT - Get Free Report) was the recipient of a large increase in short interest during the month of August. As of August 15th, there was short interest totaling 1,280,000 shares, anincreaseof35.6% from the July 31st total of 943,700 shares. Based on an average daily trading volume, of 788,200 shares, the short-interest ratio is currently 1.6 days. Approximately1.3% of the shares of the stock are short sold. Approximately1.3% of the shares of the stock are short sold. Based on an average daily trading volume, of 788,200 shares, the short-interest ratio is currently 1.6 days.

PennantPark Floating Rate Capital Trading Down 0.4%

Shares of PennantPark Floating Rate Capital stock traded down $0.05 during trading on Monday, hitting $10.22. 370,059 shares of the company were exchanged, compared to its average volume of 1,094,013. PennantPark Floating Rate Capital has a 1-year low of $8.82 and a 1-year high of $11.90. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.15 and a quick ratio of 0.15. The firm has a market capitalization of $1.01 billion, a P/E ratio of 7.30 and a beta of 0.98. The firm's fifty day moving average price is $10.44 and its 200 day moving average price is $10.42.

PennantPark Floating Rate Capital Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 15th will be paid a dividend of $0.1025 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a c) annualized dividend and a yield of 12.0%. PennantPark Floating Rate Capital's dividend payout ratio (DPR) is currently 146.43%.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Maxim Group set a $11.50 target price on shares of PennantPark Floating Rate Capital and gave the company a "buy" rating in a research report on Wednesday, May 14th. Keefe, Bruyette & Woods dropped their price target on shares of PennantPark Floating Rate Capital from $11.00 to $10.50 and set a "market perform" rating for the company in a research report on Wednesday, August 13th. UBS Group boosted their price objective on shares of PennantPark Floating Rate Capital from $10.50 to $10.75 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. JMP Securities reaffirmed a "market outperform" rating and set a $11.00 price target on shares of PennantPark Floating Rate Capital in a research note on Wednesday, September 3rd. Finally, LADENBURG THALM/SH SH upgraded shares of PennantPark Floating Rate Capital to a "strong-buy" rating in a report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $10.88.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. grew its position in PennantPark Floating Rate Capital by 38.4% during the second quarter. Osaic Holdings Inc. now owns 162,389 shares of the asset manager's stock worth $1,678,000 after buying an additional 45,022 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its holdings in PennantPark Floating Rate Capital by 3.4% during the second quarter. CANADA LIFE ASSURANCE Co now owns 86,588 shares of the asset manager's stock valued at $896,000 after acquiring an additional 2,823 shares during the period. Corient Private Wealth LLC boosted its position in shares of PennantPark Floating Rate Capital by 247.0% during the second quarter. Corient Private Wealth LLC now owns 53,747 shares of the asset manager's stock valued at $555,000 after buying an additional 38,258 shares during the period. Tidal Investments LLC boosted its holdings in shares of PennantPark Floating Rate Capital by 2.2% in the second quarter. Tidal Investments LLC now owns 105,656 shares of the asset manager's stock valued at $1,091,000 after purchasing an additional 2,322 shares during the period. Finally, BNP Paribas Financial Markets acquired a new position in shares of PennantPark Floating Rate Capital during the second quarter worth $55,000. Hedge funds and other institutional investors own 19.77% of the company's stock.

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.

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