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

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) announced a monthly dividend on Thursday, July 3rd, Wall Street Journal reports. Stockholders of record on Tuesday, July 15th will be given a dividend of 0.08 per share by the asset manager on Friday, August 1st. This represents a $0.96 annualized dividend and a dividend yield of 13.78%. The ex-dividend date is Tuesday, July 15th.

PennantPark Investment has a 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 Price Performance

Shares of NASDAQ:PNNT traded up $0.05 during midday trading on Thursday, reaching $6.97. 219,403 shares of the company were exchanged, compared to its average volume of 491,681. The stock has a market cap of $454.79 million, a PE ratio of 26.79 and a beta of 1.00. The business's fifty day moving average is $6.68 and its two-hundred day moving average is $6.84. PennantPark Investment has a one year low of $5.72 and a one year high of $8.04. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.56.

Analyst Ratings Changes

PNNT has been the subject of several analyst reports. Compass Point reissued a "sell" rating and issued a $5.75 price objective (down previously from $6.00) on shares of PennantPark Investment in a research note on Wednesday, May 21st. Wall Street Zen raised PennantPark Investment from a "sell" rating to a "hold" rating in a research note on Wednesday, May 14th. LADENBURG THALM/SH SH upgraded PennantPark Investment to a "hold" rating in a report on Wednesday, May 14th. Finally, JPMorgan Chase & Co. reduced their target price on PennantPark Investment from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th.

Insider Buying and Selling at PennantPark Investment

In related news, Director Jose A. Briones acquired 3,640 shares of the stock in a transaction dated 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 completion of the purchase, the director owned 268,972 shares of the company's stock, valued at approximately $1,850,527.36. This represents a 1.37% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.00% of the company's stock.

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.

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