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

PennantPark Investment Co. (NASDAQ:PNNT) declared a monthly dividend on Tuesday, February 3rd. Investors of record on Tuesday, February 17th will be paid a dividend of 0.08 per share by the asset manager on Monday, March 2nd. This represents a c) annualized dividend and a yield of 16.8%. The ex-dividend date is Tuesday, February 17th.

PennantPark Investment has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 1 years. PennantPark Investment has a payout ratio of 135.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research 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

NASDAQ PNNT traded up $0.05 on Wednesday, hitting $5.71. 196,468 shares of the company’s stock traded hands, compared to its average volume of 596,068. 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’s 50-day moving average price is $5.94 and its two-hundred day moving average price is $6.52. PennantPark Investment has a 1-year low of $5.63 and a 1-year high of $7.53. The firm has a market capitalization of $372.51 million, a PE ratio of 21.94 and a beta of 0.61.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on PNNT shares. Keefe, Bruyette & Woods decreased their price objective on PennantPark Investment from $6.25 to $5.50 and set an “underperform” rating for the company in a report on Wednesday, November 26th. JPMorgan Chase & Co. dropped their price target on shares of PennantPark Investment from $6.50 to $5.50 and set a “neutral” rating on the stock in a research note on Wednesday, November 26th. Compass Point raised shares of PennantPark Investment from a “sell” rating to a “neutral” rating and decreased their price target for the company from $5.75 to $5.50 in a research note on Wednesday, December 3rd. Finally, Truist Financial decreased their target price on PennantPark Investment from $8.00 to $7.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $5.88.

PennantPark Investment Company Profile

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.