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

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) declared a monthly dividend on Wednesday, June 4th, Wall Street Journal reports. Shareholders of record on Monday, June 16th will be paid a dividend of 0.08 per share by the asset manager on Tuesday, July 1st. This represents a $0.96 dividend on an annualized basis and a yield of 14.33%. The ex-dividend date of this dividend is Monday, June 16th.

PennantPark Investment has increased its dividend payment by an average of 24.2% 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 135.2% indicating that 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 Stock Performance

Shares of NASDAQ PNNT traded up $0.03 during midday trading on Thursday, hitting $6.70. 158,754 shares of the company's stock traded hands, compared to its average volume of 495,832. PennantPark Investment has a 1 year low of $5.72 and a 1 year high of $8.04. The stock has a market capitalization of $437.48 million, a price-to-earnings ratio of 25.77 and a beta of 1.01. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.47 and a current ratio of 0.47. The firm has a fifty day moving average of $6.53 and a 200 day moving average of $6.86.

Wall Street Analysts Forecast Growth

PNNT has been the subject of a number of recent research reports. Wall Street Zen upgraded PennantPark Investment from a "sell" rating to a "hold" rating in a research note on Wednesday, May 14th. JPMorgan Chase & Co. cut 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. LADENBURG THALM/SH SH upgraded PennantPark Investment to a "hold" rating in a research note on Wednesday, May 14th. Finally, Compass Point reiterated a "sell" rating and set a $5.75 price objective (down from $6.00) on shares of PennantPark Investment in a research note on Wednesday, May 21st.

Insiders Place Their Bets

In other PennantPark Investment news, Director Jose A. Briones purchased 3,640 shares of the company's stock in a transaction on Wednesday, May 14th. The stock was acquired at an average cost of $6.88 per share, for a total transaction of $25,043.20. Following the purchase, 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 position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 3.00% of the stock is currently owned by corporate insiders.

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.