PennantPark Investment Co. Plans Monthly Dividend of $0.08 (NASDAQ:PNNT)

PennantPark Investment Co. (NASDAQ:PNNT) announced a monthly dividend on Tuesday, July 2nd, Wall Street Journal reports. Investors of record on Monday, July 15th will be given a dividend of 0.08 per share by the asset manager on Thursday, August 1st. This represents a $0.96 annualized dividend and a yield of 12.50%. The ex-dividend date is Monday, July 15th.

PennantPark Investment has increased its dividend by an average of 14.2% annually over the last three years. PennantPark Investment has a payout ratio of 104.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect PennantPark Investment to earn $0.92 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 104.3%.

PennantPark Investment Stock Performance

PNNT stock traded up $0.06 during trading hours on Wednesday, hitting $7.68. 269,098 shares of the stock were exchanged, compared to its average volume of 416,887. PennantPark Investment has a 12 month low of $5.89 and a 12 month high of $7.77. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 1.40. The firm has a market capitalization of $500.89 million, a P/E ratio of 8.34 and a beta of 1.53. The company has a 50-day simple moving average of $7.40 and a two-hundred day simple moving average of $7.05.

PennantPark Investment (NASDAQ:PNNT) last released its quarterly earnings results on Wednesday, May 8th. The asset manager reported $0.22 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.01). PennantPark Investment had a net margin of 40.14% and a return on equity of 13.65%. The business had revenue of $35.98 million during the quarter, compared to analyst estimates of $36.22 million. On average, analysts forecast that PennantPark Investment will post 0.92 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. Keefe, Bruyette & Woods raised shares of PennantPark Investment to a “hold” rating in a report on Friday, May 10th. Raymond James lowered PennantPark Investment from an “outperform” rating to a “market perform” rating in a research note on Friday, May 10th. Five equities research analysts have rated the stock with a hold rating, Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $6.94.

PennantPark Investment Company Profile

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.