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

Key Points

• PennantPark declared a monthly dividend of $0.04 per share, payable June 1 to shareholders of record May 15, which annualizes to $0.48 and implies a 10.0% yield.
• The dividend appears reasonably covered: PennantPark's payout ratio is 67.6% and analysts forecast $0.80 EPS next year, implying an expected future payout ratio of about 60%.
• CFO Richard T. Allorto Jr. bought 15,000 shares at roughly $4.88 in March (doubling his stake to 30,000), while the stock trades near $4.82 with a 52‑week range of $4.29–$7.53 and a market cap of about $314 million.

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) announced a monthly dividend on Monday, May 4th. Stockholders of record on Friday, May 15th will be given a dividend of 0.04 per share by the asset manager on Monday, June 1st. This represents a c) dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend is Friday, May 15th.

PennantPark Investment has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 1 years. PennantPark Investment has a payout ratio of 67.6% indicating that its dividend is sufficiently covered by earnings. Equities 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 0.9%

PNNT opened at $4.82 on Tuesday. PennantPark Investment has a fifty-two week low of $4.29 and a fifty-two week high of $7.53. 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 company has a market capitalization of $314.40 million, a P/E ratio of 18.52 and a beta of 0.63. The stock has a fifty day moving average of $4.70 and a 200-day moving average of $5.56.

Insider Activity at PennantPark Investment

In related news, CFO Richard T. Allorto, Jr. purchased 15,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were bought at an average price of $4.88 per share, for a total transaction of $73,200.00. Following the completion of the transaction, the chief financial officer owned 30,000 shares of the company's stock, valued at approximately $146,400. This trade represents a 100.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PNNT. Closed End Fund Advisors Inc. bought a new position in PennantPark Investment in the fourth quarter valued at about $895,000. Jane Street Group LLC bought a new position in PennantPark Investment in the fourth quarter valued at about $820,000. XTX Topco Ltd bought a new position in PennantPark Investment in the fourth quarter valued at about $682,000. Sunbelt Securities Inc. grew its position in PennantPark Investment by 493.1% in the third quarter. Sunbelt Securities Inc. now owns 104,245 shares of the asset manager's stock valued at $699,000 after acquiring an additional 86,668 shares during the last quarter. Finally, Gallagher Capital Advisors LLC bought a new position in PennantPark Investment in the fourth quarter valued at about $422,000. Institutional investors 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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