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

PennantPark Investment Co. (NASDAQ:PNNT) declared a monthly dividend on Wednesday, March 5th, Wall Street Journal reports. Shareholders of record on Friday, March 14th will be given a dividend of 0.08 per share by the asset manager on Tuesday, April 1st. This represents a $0.96 annualized dividend and a yield of 13.49%. The ex-dividend date of this dividend is Friday, March 14th.

PennantPark Investment has increased its dividend by an average of 24.2% per year over the last three years. PennantPark Investment has a dividend payout ratio of 120.0% 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 $0.80 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 120.0%.

PennantPark Investment Stock Performance

NASDAQ PNNT traded down $0.01 during trading on Wednesday, reaching $7.12. The company’s stock had a trading volume of 453,781 shares, compared to its average volume of 450,884. The firm has a market cap of $464.58 million, a price-to-earnings ratio of 27.37 and a beta of 1.47. PennantPark Investment has a twelve month low of $6.43 and a twelve month high of $8.04. The business’s fifty day moving average price is $7.09 and its 200-day moving average price is $6.99. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.47 and a current ratio of 0.47.

Analysts Set New Price Targets

Separately, LADENBURG THALM/SH SH downgraded shares of PennantPark Investment from a “buy” rating to a “neutral” rating in a report on Wednesday, November 27th. One research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $6.00.

About PennantPark Investment

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.