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

Key Points

• PennantPark Investment declared a $0.04-per-share monthly dividend, payable September 1 to shareholders of record on August 14. The dividend equates to a $0.48 annualized payout and a reported 13.7% yield.
• The dividend appears supported by earnings, with a current payout ratio of 67.6%; analysts expect next year’s earnings of $0.80 per share, implying a projected payout ratio of 60%.
• PNNT shares rose 3.1% to open at $3.52, but remain well below their 12-month high of $7.53. Institutional investors own 26.62% of the company, with several funds recently increasing their positions.

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) announced a monthly dividend on Tuesday, August 4th. Investors of record on Friday, August 14th will be paid a dividend of 0.04 per share by the asset manager on Tuesday, September 1st. This represents a c) annualized dividend and a yield of 13.7%. The ex-dividend date of this dividend is Friday, August 14th.

PennantPark Investment has raised its dividend by an average of 0.1%annually over the last three years and has increased 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 Trading Up 3.1%

Shares of PNNT opened at $3.52 on Wednesday. PennantPark Investment has a 12 month low of $3.19 and a 12 month high of $7.53. The stock's 50-day moving average is $3.53 and its two-hundred day moving average is $4.41. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.47 and a quick ratio of 0.47. The stock has a market cap of $229.52 million, a PE ratio of 13.52 and a beta of 0.58.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PNNT. NewEdge Wealth LLC grew its position in shares of PennantPark Investment by 25.0% during the fourth quarter. NewEdge Wealth LLC now owns 319,426 shares of the asset manager's stock worth $1,904,000 after acquiring an additional 63,938 shares during the last quarter. Sunbelt Securities Inc. raised its stake in PennantPark Investment by 69.6% during the 1st quarter. Sunbelt Securities Inc. now owns 298,217 shares of the asset manager's stock valued at $1,339,000 after acquiring an additional 122,430 shares in the last quarter. UBS Group AG increased its holdings in shares of PennantPark Investment by 35.8% during the third quarter. UBS Group AG now owns 209,725 shares of the asset manager's stock valued at $1,407,000 after purchasing an additional 55,331 shares during the period. AlphaCentric Advisors LLC acquired a new stake in PennantPark Investment in the first quarter worth about $700,000. Finally, Closed End Fund Advisors Inc. bought a new stake in shares of PennantPark Investment during the 4th quarter worth about $895,000. Institutional investors and hedge funds 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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