PennantPark Investment Co. Announces Monthly Dividend of $0.04 (NASDAQ:PNNT)

Key Points

• PennantPark announced a monthly dividend of $0.04 per share (shareholders of record Apr 15; payable May 1), representing an annualized yield of 10.7%; the dividend is covered with a payout ratio of 67.6% and analysts expect $0.80 EPS next year.
• CFO Richard T. Allorto Jr. bought 15,000 shares at about $4.88 on Mar 11, doubling his stake to 30,000 shares; insiders now own roughly 3% of the company while institutional investors hold about 26.6%.

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) announced a monthly dividend on Thursday, April 2nd. Shareholders of record on Wednesday, April 15th will be given a dividend of 0.04 per share by the asset manager on Friday, May 1st. This represents a c) dividend on an annualized basis and a yield of 10.7%. The ex-dividend date is Wednesday, April 15th.

PennantPark Investment has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 1 consecutive years. PennantPark Investment has a dividend payout ratio of 67.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect PennantPark Investment to earn $0.80 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 60.0%.

PennantPark Investment Stock Up 0.6%

NASDAQ PNNT traded up $0.03 during trading on Monday, reaching $4.49. The company's stock had a trading volume of 204,590 shares, compared to its average volume of 770,050. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.56. The stock has a market capitalization of $292.85 million, a PE ratio of 17.25 and a beta of 0.68. The business has a 50-day moving average price of $4.92 and a 200-day moving average price of $5.75. PennantPark Investment has a 1-year low of $4.29 and a 1-year high of $7.53.

Insider Activity at PennantPark Investment

In other news, CFO Richard T. Allorto, Jr. purchased 15,000 shares of the company's stock in a transaction dated Wednesday, March 11th. The shares were bought at an average price of $4.88 per share, with a total value of $73,200.00. Following the completion of the transaction, the chief financial officer directly owned 30,000 shares in the company, valued at $146,400. This trade represents a 100.00% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PennantPark Investment

Hedge funds and other institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC grew its stake 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 last quarter. BNP Paribas Financial Markets acquired a new stake in shares of PennantPark Investment in the third quarter worth $32,000. Advisory Services Network LLC acquired a new stake in shares of PennantPark Investment in the third quarter worth $38,000. Caitong International Asset Management Co. Ltd grew its stake in shares of PennantPark Investment by 127,180.0% in the fourth 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 during the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in shares of PennantPark Investment in the fourth quarter worth $52,000. Institutional investors and hedge funds own 26.62% of the company's stock.

About PennantPark Investment

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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