PennantPark Investment Co. (NASDAQ: PNNT) has received a consensus recommendation of “Hold” from five research firms currently covering the stock, according to MarketBeat. The findings indicate that one analyst has issued a sell rating, three analysts have rated the stock as a hold, and one has given it a buy rating. The average one-year price target among these brokerages stands at $5.8750, reflecting a cautious outlook for the company.
Several equity analysts have recently updated their projections for PennantPark Investment. On November 26, 2023, JPMorgan Chase & Co. revised its price target from $6.50 to $5.50 while maintaining a “neutral” rating. Keefe, Bruyette & Woods followed suit, lowering their target from $6.25 to $5.50 and assigning an “underperform” rating. Conversely, Compass Point upgraded the stock from a “sell” rating to “neutral,” while also adjusting their price target down to $5.50 on December 3, 2023. Truist Financial, however, remains optimistic, decreasing its target from $8.00 to $7.00 and maintaining a “buy” rating for the firm.
Institutional Interest in PennantPark Investment
A number of institutional investors have recently altered their holdings in PennantPark Investment. Notably, EverSource Wealth Advisors LLC increased its position by 100.6% in the second quarter, bringing its total to 3,695 shares valued at approximately $25,000. BNP Paribas Financial Markets entered the picture with a new stake valued at around $32,000 during the third quarter. Other notable acquisitions include First Horizon Advisors Inc. and Advisory Services Network LLC, which purchased stakes valued at approximately $35,000 and $38,000, respectively.
Allworth Financial LP made a significant acquisition as well, expanding its position by a staggering 7,742.4% during the second quarter, resulting in ownership of 9,254 shares worth approximately $63,000. Overall, institutional investors and hedge funds collectively hold 26.62% of the company’s stock.
Current Trading Performance and Dividend Announcement
As of Thursday, shares of PennantPark Investment opened at $6.17. The stock has experienced a twelve-month low of $5.66 and a high of $7.53. Financial metrics reveal a current ratio of 0.47, a quick ratio of 0.47, and a debt-to-equity ratio of 1.56. The company’s market capitalization is approximately $402.55 million, with a price-to-earnings ratio of 23.71 and a beta of 0.61.
In a recent development, PennantPark announced a monthly dividend of $0.08, set to be paid on February 2, 2024, to stockholders of record on January 16, 2024. This dividend represents a significant annualized yield of 15.6%, despite a high dividend payout ratio of 192.00%.
Founded in 2006, PennantPark Investment Corporation operates as a publicly traded closed-end management investment company, regulated as a business development company under the Investment Company Act of 1940. The firm specializes in providing tailored financing solutions to middle-market companies across the United States, with a focus on debt and equity investments in businesses that typically generate annual revenues between $10 million and $200 million.
