PennantPark Investment (NASDAQ:PNNT) Lowered to Sell at Zacks Investment Research
According to Zacks, “PennantPark Investment Corporation is a business development company which principally invests in U.S. middle-market private companies in the form of mezzanine debt, senior secured loans and equity investments. The companies in which it invests are typically highly leveraged, often as a result of leveraged buy-outs or other recapitalization transactions. PennantPark’s investment objectives are to generate both current income and capital appreciation through debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC. “
Other equities research analysts have also issued research reports about the company. ValuEngine lowered PennantPark Investment from a hold rating to a sell rating in a research note on Tuesday, June 18th. TheStreet lowered PennantPark Investment from a b- rating to a c rating in a research note on Tuesday, July 16th. Finally, BidaskClub lowered PennantPark Investment from a sell rating to a strong sell rating in a research note on Saturday, September 7th. Three investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the company. The company currently has a consensus rating of Hold and a consensus price target of $7.50.
PennantPark Investment (NASDAQ:PNNT) last released its earnings results on Wednesday, August 7th. The asset manager reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.02). PennantPark Investment had a net margin of 18.01% and a return on equity of 8.08%. The company had revenue of $28.11 million during the quarter, compared to the consensus estimate of $29.38 million. As a group, equities research analysts forecast that PennantPark Investment will post 0.71 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Stockholders of record on Tuesday, September 17th will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.52%. The ex-dividend date of this dividend is Monday, September 16th. PennantPark Investment’s dividend payout ratio (DPR) is presently 96.00%.
In related news, Chairman Arthur H. Penn bought 15,000 shares of the stock in a transaction dated Thursday, August 15th. The stock was bought at an average price of $6.35 per share, with a total value of $95,250.00. Following the purchase, the chairman now owns 193,410 shares in the company, valued at approximately $1,228,153.50. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last three months, insiders bought 45,000 shares of company stock valued at $285,600. 2.00% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. raised its position in PennantPark Investment by 9.3% during the 1st quarter. JPMorgan Chase & Co. now owns 3,567,869 shares of the asset manager’s stock valued at $24,655,000 after purchasing an additional 304,206 shares during the last quarter. Clearbridge Investments LLC raised its position in PennantPark Investment by 6.0% during the 1st quarter. Clearbridge Investments LLC now owns 1,829,119 shares of the asset manager’s stock valued at $12,639,000 after purchasing an additional 103,699 shares during the last quarter. Kennedy Capital Management Inc. raised its position in PennantPark Investment by 43.5% during the 1st quarter. Kennedy Capital Management Inc. now owns 718,493 shares of the asset manager’s stock valued at $4,965,000 after purchasing an additional 217,952 shares during the last quarter. Virtus ETF Advisers LLC bought a new position in PennantPark Investment during the 2nd quarter valued at approximately $4,274,000. Finally, Van ECK Associates Corp raised its position in PennantPark Investment by 8.5% during the 2nd quarter. Van ECK Associates Corp now owns 628,766 shares of the asset manager’s stock valued at $3,974,000 after purchasing an additional 49,496 shares during the last quarter. 43.20% of the stock is owned by institutional investors and hedge funds.
About PennantPark Investment
PennantPark Investment Corporation 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 building and real estate, hotels and gaming, electronics, healthcare, education and childcare, financial services, printing and publishing, consumer products, business services, energy and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, manufacturing industries and retail.
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