PennantPark Investment Co. Declares Dividend of $0.08 (NASDAQ:PNNT)

Key Points

• PennantPark Investment Co. has declared a dividend of $0.08 per share, set to be paid on September 2nd to investors of record on August 18th.
• The company's dividend yield is an exceptionally high 1,319.0%, but it has a payout ratio of 135.2%, indicating that it is not covering its dividend with earnings alone.
• PennantPark Investment Corporation specializes in direct and mezzanine investments in middle market companies, covering various sectors including technology, healthcare, and consumer products.

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) declared a dividend on Tuesday, August 12th, investing.com reports. Stockholders of record on Monday, August 18th will be given a dividend of 0.08 per share by the asset manager on Tuesday, September 2nd. This represents a dividend yield of 1,319.0%. The ex-dividend date is Friday, August 15th.

PennantPark Investment has a dividend payout ratio of 135.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect PennantPark Investment to earn $0.80 per share next year, which means the company may not be able to cover its $0.96 annual dividend with an expected future payout ratio of 120.0%.

PennantPark Investment Price Performance

PNNT stock traded up $0.02 during trading hours on Thursday, hitting $7.36. 608,287 shares of the stock traded hands, compared to its average volume of 487,672. The stock has a 50-day simple moving average of $7.05 and a 200 day simple moving average of $6.89. PennantPark Investment has a one year low of $5.72 and a one year high of $7.53. The company has a market cap of $480.25 million, a P/E ratio of 28.29 and a beta of 1.07. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.56.

Wall Street Analysts Forecast Growth

PNNT has been the subject of several research reports. JPMorgan Chase & Co. raised their target price on PennantPark Investment from $6.50 to $7.00 and gave the company a "neutral" rating in a research note on Thursday. LADENBURG THALM/SH SH raised PennantPark Investment to a "hold" rating in a research note on Wednesday, May 14th. Compass Point reaffirmed a "sell" rating and set a $5.75 target price (down previously from $6.00) on shares of PennantPark Investment in a research note on Wednesday, May 21st. Wall Street Zen raised PennantPark Investment from a "sell" rating to a "hold" rating in a research note on Wednesday, May 14th. Finally, Keefe, Bruyette & Woods reaffirmed an "underperform" rating and set a $6.25 target price (down previously from $6.50) on shares of PennantPark Investment in a research note on Wednesday. Two equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. According to data from MarketBeat, PennantPark Investment has a consensus rating of "Hold" and an average price target of $6.33.

About PennantPark Investment

PennantPark Investment Corporation, a business development company is a private equity fund specializes in direct and mezzanine investments in middle market companies. It invests in the form of mezzanine debt, senior secured loans, and equity investments. The fund typically invests in buildings and real estate, hotels, gaming and leisure, technology, telecommunications, transportation, information technology services, electronics, healthcare & pharmaceuticals, education and childcare, financial services, printing and publishing, consumer products, business services, energy & Related Services and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, building materials, capital equipment, chemicals, plastics, & rubber, food & beverage, wholesale, manufacturing and basic industries and retail.