PennantPark Investment Co. (NASDAQ:PNNT) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus recommendation of Hold (1 sell, 3 holds, 1 buy) with an average 12‑month price target of $5.625, while Keefe, Bruyette & Woods cut its target to $4.50 and rated the stock underperform.
• CFO Richard T. Allorto, Jr. bought 15,000 shares at about $4.88 on March 11, doubling his stake to 30,000 shares.
• PennantPark declared a monthly dividend of $0.04 per share (ex‑dividend April 15), implying a 10.5% yield but a payout ratio of roughly 123%, signaling the distribution may be unsustainably high.

Shares of PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) have been assigned a consensus recommendation of "Hold" from the five analysts that are presently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $5.6250.

Separately, Keefe, Bruyette & Woods decreased their price target on shares of PennantPark Investment from $5.00 to $4.50 and set an "underperform" rating on the stock in a research note on Thursday, April 16th.

Insiders Place Their Bets

In other PennantPark Investment news, CFO Richard T. Allorto, Jr. purchased 15,000 shares of the firm's stock in a transaction on Wednesday, March 11th. The shares were purchased at an average price of $4.88 per share, for a total transaction of $73,200.00. Following the completion of the purchase, the chief financial officer directly owned 30,000 shares of the company's stock, valued at approximately $146,400. This represents a 100.00% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PennantPark Investment

Institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its stake in PennantPark Investment by 100.6% during the second quarter. EverSource Wealth Advisors LLC now owns 3,695 shares of the asset manager's stock worth $25,000 after buying an additional 1,853 shares in the last quarter. BNP Paribas Financial Markets acquired a new stake in PennantPark Investment during the third quarter worth $32,000. Advisory Services Network LLC acquired a new stake in PennantPark Investment during the third quarter worth $38,000. Caitong International Asset Management Co. Ltd boosted its stake in PennantPark Investment by 127,180.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 6,364 shares of the asset manager's stock worth $38,000 after buying an additional 6,359 shares in the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in shares of PennantPark Investment in the 4th quarter valued at $52,000. Institutional investors and hedge funds own 26.62% of the company's stock.

PennantPark Investment Stock Down 0.1%

PNNT opened at $4.56 on Friday. 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 current ratio of 0.47 and a quick ratio of 0.47. The firm's fifty day moving average price is $4.74 and its two-hundred day moving average price is $5.62. The company has a market capitalization of $297.42 million, a P/E ratio of 17.52 and a beta of 0.68.

PennantPark Investment Cuts Dividend

The firm also recently declared a monthly dividend, which will be paid on Friday, May 1st. Shareholders of record on Wednesday, April 15th will be paid a dividend of $0.04 per share. The ex-dividend date is Wednesday, April 15th. This represents a c) dividend on an annualized basis and a yield of 10.5%. PennantPark Investment's payout ratio is currently 123.08%.

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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