PennantPark Investment Co. Plans 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) announced a dividend on Tuesday, August 12th, investing.com reports. Investors 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 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. 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 Trading Down 3.3%

PennantPark Investment stock traded down $0.24 during midday trading on Friday, reaching $7.12. The stock had a trading volume of 471,672 shares, compared to its average volume of 487,590. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 1.56. PennantPark Investment has a 52-week low of $5.72 and a 52-week high of $7.53. The firm has a market cap of $464.91 million, a price-to-earnings ratio of 27.39 and a beta of 1.07. The company has a fifty day moving average of $7.06 and a 200 day moving average of $6.89.

Analysts Set New Price Targets

PNNT has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods reissued an "underperform" rating and issued a $6.25 price objective (down from $6.50) on shares of PennantPark Investment in a research report on Wednesday. Compass Point restated a "sell" rating and issued a $5.75 target price (down from $6.00) on shares of PennantPark Investment in a research note on Wednesday, May 21st. Wall Street Zen upgraded shares of PennantPark Investment from a "sell" rating to a "hold" rating in a research note on Wednesday, May 14th. LADENBURG THALM/SH SH upgraded shares of PennantPark Investment to a "hold" rating in a research note on Wednesday, May 14th. Finally, JPMorgan Chase & Co. upped their target price on shares of PennantPark Investment from $6.50 to $7.00 and gave the stock a "neutral" rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating and three have assigned a hold rating to the company. According to data from MarketBeat.com, PennantPark Investment presently has an average 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.