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

PennantPark Investment Co. (NASDAQ:PNNT) announced a monthly dividend on Tuesday, December 3rd,Wall Street Journal reports. Shareholders of record on Monday, December 16th will be given a dividend of 0.08 per share by the asset manager on Thursday, January 2nd. This represents a $0.96 annualized dividend and a yield of 13.80%. The ex-dividend date of this dividend is Monday, December 16th.

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 112.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect PennantPark Investment to earn $0.87 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 110.3%.

PennantPark Investment Stock Performance

Shares of PNNT opened at $6.96 on Friday. The company has a market cap of $454.13 million, a PE ratio of 40.91 and a beta of 1.49. The firm has a 50-day moving average of $6.93 and a 200-day moving average of $7.13. PennantPark Investment has a one year low of $6.43 and a one year high of $8.04. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.51 and a quick ratio of 0.51.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Compass Point raised PennantPark Investment from a “sell” rating to a “neutral” rating and set a $6.00 price target on the stock in a research report on Monday, September 9th. LADENBURG THALM/SH SH downgraded PennantPark Investment from a “buy” rating to a “neutral” rating in a research note on Wednesday, November 27th. One investment analyst has rated the stock with a sell rating and four have issued a hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $6.00.

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.