PennantPark Floating Rate Capital (PFLT) Stock Price, News & Analysis

Company Overview

PennantPark Floating Rate Capital, Inc. (NASDAQ: PFLT) is a closed-end management investment company organized as a business development company (BDC) under the Investment Company Act of 1940. The firm’s primary objective is to generate current income and, secondarily, capital appreciation for its shareholders through debt and equity investments in middle-market companies. PennantPark Floating Rate Capital focuses on floating-rate instruments to help mitigate interest-rate risk and align cash flows with its dividend strategy.

The company’s portfolio is concentrated in senior secured loans, second-lien debt, mezzanine securities and, from time to time, equity investments. These financing solutions are typically deployed in U.S.-based businesses with EBITDA ranging from $10 million to $50 million, across a variety of industries including healthcare, business services, manufacturing and technology. PennantPark Floating Rate Capital seeks to add value through direct origination, active portfolio management and collaboration with its external adviser to structure flexible financing packages tailored to its portfolio companies’ needs.

PennantPark Floating Rate Capital is externally managed by PennantPark Investment Advisers, LLC, a specialized credit manager founded with a focus on middle-market lending. Since its initial public offering in 2010, the company has leveraged the adviser’s underwriting platform, industry relationships and credit-selection expertise. The adviser’s investment professionals bring experience in credit analysis, sourcing and structuring to support the BDC’s risk-adjusted yield objectives.

The company’s operations and investments are primarily concentrated in the United States. Its portfolio companies span multiple regions and sectors, reflecting a diversified approach to mitigating sector-specific risks. PennantPark Floating Rate Capital complies with all regulatory requirements for BDCs and aims to deliver a consistent dividend stream by maintaining a portfolio of floating-rate assets that can benefit from rising interest rates.

Key Stats

• Today's Range: $8.85 to $8.99
• 50-Day Range: $8.73 to $10.54
• 52-Week Range: $8.69 to $11.90
• Volume: 1.59 million shs
• Average Volume: 1.13 million shs
• Market Capitalization: $879.57 million
• P/E Ratio: 6.33
• Dividend Yield: 13.87%
• Price Target: $10.88
• Consensus Rating: Moderate Buy

PennantPark Floating Rate Capital Stock Analysis - MarketRank™

PennantPark Floating Rate Capital scored higher than 87% of companies evaluated by MarketBeat, and ranked 255th out of 933 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.0 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

PennantPark Floating Rate Capital has received a consensus rating of Moderate Buy. The company's average rating score is 2.75, and is based on 4 buy ratings, 3 hold ratings, and no sell ratings.

Upside Potential

PennantPark Floating Rate Capital has a consensus price target of $10.88, representing about 22.7% upside from its current price of $8.87.

Amount of Analyst Coverage

PennantPark Floating Rate Capital has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 0.75%

Earnings Growth

Earnings for PennantPark Floating Rate Capital are expected to grow by 0.75% in the coming year, from $1.33 to $1.34 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of PennantPark Floating Rate Capital is 6.33, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 284.01.

Price to Earnings Ratio vs. Sector

The P/E ratio of PennantPark Floating Rate Capital is 6.33, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 245.93.

Price to Book Value per Share Ratio

PennantPark Floating Rate Capital has a P/B Ratio of 0.81. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.01% of the float of PennantPark Floating Rate Capital has been sold short.

Short Interest Ratio / Days to Cover

PennantPark Floating Rate Capital has a short interest ratio ("days to cover") of 1.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in PennantPark Floating Rate Capital has recently decreased by 22.30%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

PennantPark Floating Rate Capital is a leading dividend payer. It pays a dividend yield of 13.84%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

PennantPark Floating Rate Capital does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of PennantPark Floating Rate Capital is 146.43%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, PennantPark Floating Rate Capital will have a dividend payout ratio of 91.79% in the coming year. This indicates that PennantPark Floating Rate Capital may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

1.01% of the float of PennantPark Floating Rate Capital has been sold short.

Short Interest Ratio / Days to Cover

PennantPark Floating Rate Capital has a short interest ratio ("days to cover") of 1.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in PennantPark Floating Rate Capital has recently decreased by 22.30%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.8 / 5
• News Sentiment: 0.85

News Sentiment

PennantPark Floating Rate Capital has a news sentiment score of 0.85. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.66 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 8 news articles for PennantPark Floating Rate Capital this week, compared to 4 articles on an average week.

Search Interest

39 people have searched for PFLT on MarketBeat in the last 30 days. This is an increase of 44% compared to the previous 30 days.

MarketBeat Follows

8 people have added PennantPark Floating Rate Capital to their MarketBeat watchlist in the last 30 days. This is an increase of 700% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, PennantPark Floating Rate Capital insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.00% of the stock of PennantPark Floating Rate Capital is held by insiders.

Percentage Held by Institutions

Only 19.77% of the stock of PennantPark Floating Rate Capital is held by institutions.

PFLT Stock Analysis - Frequently Asked Questions

How have PFLT shares performed this year?

PennantPark Floating Rate Capital's stock was trading at $10.93 on January 1st, 2025. Since then, PFLT shares have decreased by 18.9% and is now trading at $8.8650.

How were PennantPark Floating Rate Capital's earnings last quarter?

PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) announced its earnings results on Wednesday, August, 7th. The asset manager reported $0.31 EPS for the quarter, missing analysts' consensus estimates of $0.32 by $0.01. The asset manager earned $48.51 million during the quarter, compared to analysts' expectations of $47.63 million. PennantPark Floating Rate Capital had a trailing twelve-month return on equity of 10.76% and a net margin of 45.36%.

How do I buy shares of PennantPark Floating Rate Capital?

Shares of PFLT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of PennantPark Floating Rate Capital own?

Based on aggregate information from My MarketBeat watchlists, some other companies that PennantPark Floating Rate Capital investors own include AT&T (T), NVIDIA (NVDA), AGNC Investment (AGNC), Meta Platforms (META), Altria Group (MO), Exxon Mobil (XOM) and Oxford Lane Capital (OXLC).

Company Calendar

• Last Earnings: 8/07/2024
• Record date for 10/1 Dividend: 9/15/2025
• Ex-Dividend for 10/1 Dividend: 9/15/2025
• Dividend Payable: 10/01/2025
• Today: 10/03/2025
• Record date for 11/3 Dividend: 10/15/2025
• Ex-Dividend for 11/3 Dividend: 10/15/2025
• Dividend Payable: 11/03/2025
• Fiscal Year End: 9/30/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: Investors, not elsewhere classified
• Sub-Industry: Financial Services
• Current Symbol: NASDAQ:PFLT
• CIK: 1504619
• Web: www.pennantpark.com
• Phone: (212) 905-1000
• Fax: 212-905-1075
• Employees: 658
• Year Founded: N/A

Price Target and Rating

• Average Price Target for PennantPark Floating Rate Capital: $10.88
• High Price Target: $11.50
• Low Price Target: $10.50
• Potential Upside/Downside: +22.7%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.75
• Research Coverage: 8 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.84
• Trailing P/E Ratio: 6.33
• Forward P/E Ratio: 6.67
• P/E Growth: N/A
• Net Income: $91.84 million
• Net Margins: 45.36%
• Pretax Margin: 45.36%
• Return on Equity: 10.76%
• Return on Assets: 4.65%

Debt

• Debt-to-Equity Ratio: 0.57
• Current Ratio: 0.15
• Quick Ratio: 0.15

Sales & Book Value

• Annual Sales: $89.89 million
• Price / Sales: 9.78
• Cash Flow: $0.71 per share
• Price / Cash Flow: 12.48
• Book Value: $10.94 per share
• Price / Book: 0.81

Miscellaneous

• Outstanding Shares: 99,218,000
• Free Float: 87,076,000
• Market Cap: $879.57 million
• Optionable: Optionable
• Beta: 0.97