PennantPark Investment (NASDAQ:PNNT) Stock Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• PennantPark Investment (NASDAQ:PNNT) has recently surpassed its 200-day moving average and last traded at $6.80.
• The stock has a consensus rating of "Reduce" with target prices ranging from $6.25 to $7.00 according to various analysts.
• PennantPark Investment announced a monthly dividend of $0.08 per share, resulting in a dividend yield of 14.1% despite a high payout ratio of 457.14%.

PennantPark Investment Co. (NASDAQ:PNNT - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $6.88 and traded as high as $6.90. PennantPark Investment shares last traded at $6.80, with a volume of 805,772 shares trading hands.

Analyst Upgrades and Downgrades

PNNT has been the topic of several research reports. Keefe, Bruyette & Woods restated an "underperform" rating and issued a $6.25 target price (down previously from $6.50) on shares of PennantPark Investment in a research note on Wednesday, August 13th. JPMorgan Chase & Co. upped their price objective on PennantPark Investment from $6.50 to $7.00 and gave the stock a "neutral" rating in a research note on Thursday, August 14th. Two investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, PennantPark Investment has a consensus rating of "Reduce" and a consensus price target of $6.33.

PennantPark Investment Trading Down 1.9%

The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.56. The firm has a market capitalization of $443.69 million, a P/E ratio of 26.14 and a beta of 1.04. The firm has a 50-day moving average of $7.18 and a two-hundred day moving average of $6.88.

PennantPark Investment Announces Dividend

The firm also recently disclosed a monthly dividend, which was paid on Tuesday, September 2nd. Investors of record on Friday, August 15th were given a dividend of $0.08 per share. This represents a c) annualized dividend and a dividend yield of 14.1%. The ex-dividend date was Friday, August 15th. PennantPark Investment's dividend payout ratio is currently 457.14%.

Institutional Trading of PennantPark Investment

Several institutional investors and hedge funds have recently modified their holdings of the business. Two Sigma Investments LP lifted its position in shares of PennantPark Investment by 24.2% during the 4th quarter. Two Sigma Investments LP now owns 914,375 shares of the asset manager's stock worth $6,474,000 after buying an additional 178,423 shares during the last quarter. Advisors Asset Management Inc. raised its position in PennantPark Investment by 3.7% in the first quarter. Advisors Asset Management Inc. now owns 610,144 shares of the asset manager's stock valued at $4,289,000 after purchasing an additional 21,836 shares during the last quarter. Truvestments Capital LLC raised its position in PennantPark Investment by 55.8% in the first quarter. Truvestments Capital LLC now owns 596,573 shares of the asset manager's stock valued at $4,194,000 after purchasing an additional 213,773 shares during the last quarter. Millennium Management LLC bought a new position in PennantPark Investment in the fourth quarter valued at about $3,097,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new position in PennantPark Investment in the fourth quarter valued at about $2,470,000. 26.62% of the stock is currently owned by institutional investors.

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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