PennantPark Investment Co. (NASDAQ:PNNT) Announces $0.08 Monthly Dividend

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) declared a monthly dividend on Thursday, July 3rd, Wall Street Journal reports. Investors of record on Tuesday, July 15th will be paid a dividend of 0.08 per share by the asset manager on Friday, August 1st. This represents a $0.96 annualized dividend and a yield of 13.78%. The ex-dividend date of this dividend 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. Equities 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 PNNT stock traded up $0.05 during trading hours on Friday, hitting $6.97. The company's stock had a trading volume of 219,403 shares, compared to its average volume of 493,076. The stock has a market cap of $454.79 million, a PE ratio of 26.79 and a beta of 1.00. PennantPark Investment has a 12-month low of $5.72 and a 12-month high of $8.04. The company has a 50 day moving average of $6.70 and a 200 day moving average of $6.85. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.56.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. JPMorgan Chase & Co. cut their price target on PennantPark Investment from $7.00 to $6.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. LADENBURG THALM/SH SH raised PennantPark Investment to a "hold" rating in a report on Wednesday, May 14th. Compass Point reaffirmed a "sell" rating and set a $5.75 price objective (down previously from $6.00) on shares of PennantPark Investment in a research note on Wednesday, May 21st. Finally, Wall Street Zen raised shares of PennantPark Investment from a "sell" rating to a "hold" rating in a report on Wednesday, May 14th.

Insider Buying and Selling

In related news, Director Jose A. Briones acquired 3,640 shares of PennantPark Investment stock in a transaction on Wednesday, May 14th. The stock was bought at an average cost of $6.88 per share, for a total transaction of $25,043.20. Following the completion of the transaction, the director owned 268,972 shares of the company's stock, valued at approximately $1,850,527.36. The trade was a 1.37% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. 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.