Shares of PennantPark Investment Co. (NASDAQ: PNNT) have received an average recommendation of “Hold” from five analysts currently covering the company, according to data from MarketBeat Ratings. The consensus includes one sell rating, three hold ratings, and one buy rating, reflecting a cautious outlook among industry experts.
The average price target for PennantPark’s stock over the next year is set at $5.88. Recent assessments by various equity research analysts have influenced this target. On November 26, Keefe, Bruyette & Woods lowered their price objective from $6.25 to $5.50, designating the stock as “underperform.” Similarly, JPMorgan Chase & Co. revised their price target from $6.50 to $5.50, assigning a “neutral” rating.
In contrast, Truist Financial adjusted their price goal from $8.00 to $7.00 while maintaining a “buy” rating. Compass Point also shifted their stance, moving from a “sell” rating to “neutral” and reducing their price target from $5.75 to $5.50 on December 3.
Institutional Investor Movements
Several institutional investors have recently altered their positions in PennantPark. Janney Montgomery Scott LLC increased its holdings by 1.1% in the second quarter, now owning 132,518 shares valued at approximately $906,000. Kovack Advisors Inc. enhanced their stake by 2.7%, holding 67,850 shares with a total value of $464,000.
Further boosting their investments, EverSource Wealth Advisors LLC raised its stake by a notable 100.6%, now owning 3,695 shares worth $25,000. Confluence Investment Management LLC increased its holdings by 11.7% in the third quarter, bringing their total to 27,495 shares valued at $184,000. Lastly, Brookstone Capital Management expanded its stake by 29.2%, resulting in 13,453 shares worth $90,000.
Overall, institutional investors now own approximately 26.62% of PennantPark’s stock.
Current Trading and Dividend Announcement
As of Friday, shares of PennantPark Investment opened at $5.87. The company has a market capitalization of approximately $382.96 million, a price-to-earnings ratio of 22.56, and a beta of 0.62. The firm’s 50-day moving average stands at $6.20, while the 200-day moving average is $6.71. Over the past year, the stock has fluctuated between a low of $5.66 and a high of $7.53.
Additionally, PennantPark has announced a monthly dividend of $0.08 per share, payable on January 2, 2024. Shareholders of record on December 15, 2023, will receive this payment, translating to a dividend yield of 16.4%. The company’s current dividend payout ratio is 192.00%.
Founded in 2006, PennantPark Investment Corporation operates as a publicly traded closed-end management investment company, focusing on providing tailored financing solutions to middle-market companies across the United States. The firm’s investment strategy primarily involves debt and equity investments in U.S. businesses with annual revenues ranging from $10 million to $200 million.
