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

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) announced a monthly dividend on Wednesday, June 4th, Wall Street Journal reports. Stockholders of record on Monday, June 16th will be given a dividend of 0.08 per share by the asset manager on Tuesday, July 1st. This represents a $0.96 annualized dividend and a dividend yield of 14.17%. The ex-dividend date is Monday, June 16th.

PennantPark Investment has increased its dividend payment by an average of 24.2% per year over the last three years and has raised its dividend every year for the last 1 years. 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. Equities 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 Stock Performance

NASDAQ:PNNT traded up $0.07 during mid-day trading on Friday, hitting $6.78. 242,607 shares of the company's stock traded hands, compared to its average volume of 494,789. PennantPark Investment has a 12 month low of $5.72 and a 12 month high of $8.04. The firm has a market capitalization of $442.38 million, a price-to-earnings ratio of 26.06 and a beta of 1.01. The firm has a 50 day moving average of $6.52 and a two-hundred day moving average of $6.85. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.56.

Insider Buying and Selling at PennantPark Investment

In related news, Director Jose A. Briones bought 3,640 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were bought at an average price of $6.88 per share, for a total transaction of $25,043.20. Following the completion of the acquisition, the director now directly owns 268,972 shares of the company's stock, valued at $1,850,527.36. This trade represents a 1.37% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 3.00% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. LADENBURG THALM/SH SH upgraded PennantPark Investment to a "hold" rating in a research report on Wednesday, May 14th. Wall Street Zen upgraded PennantPark Investment from a "sell" rating to a "hold" rating in a research report on Wednesday, May 14th. JPMorgan Chase & Co. lowered their price objective on PennantPark Investment from $7.00 to $6.00 and set a "neutral" rating for the company in a research note on Thursday, April 24th. Finally, Compass Point reiterated a "sell" rating and issued a $5.75 price objective (down previously from $6.00) on shares of PennantPark Investment in a report on Wednesday, May 21st.

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.