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

PennantPark Investment Co. (NASDAQ:PNNT) announced a monthly dividend on Wednesday, October 2nd, Wall Street Journal reports. Stockholders of record on Wednesday, October 16th will be paid a dividend of 0.08 per share by the asset manager on Friday, November 1st. This represents a $0.96 dividend on an annualized basis and a dividend yield of 13.71%. The ex-dividend date of this dividend is Wednesday, October 16th.

PennantPark Investment has increased its dividend by an average of 14.2% per year over the last three years. PennantPark Investment has a dividend payout ratio of 109.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect PennantPark Investment to earn $0.90 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 106.7%.

PennantPark Investment Trading Up 1.2 %

PennantPark Investment stock traded up $0.08 during midday trading on Thursday, reaching $7.00. 465,046 shares of the stock traded hands, compared to its average volume of 449,805. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.54. The firm has a market cap of $457.10 million, a PE ratio of 7.60 and a beta of 1.52. The company has a 50-day simple moving average of $6.99 and a two-hundred day simple moving average of $7.17. PennantPark Investment has a 12-month low of $6.01 and a 12-month high of $8.04.

PennantPark Investment (NASDAQ:PNNT) last issued its quarterly earnings results on Wednesday, August 7th. The asset manager reported $0.24 EPS for the quarter, beating the consensus estimate of $0.22 by $0.02. PennantPark Investment had a net margin of 30.24% and a return on equity of 12.29%. The company had revenue of $37.00 million during the quarter, compared to analysts’ expectations of $36.31 million. Research analysts expect that PennantPark Investment will post 0.93 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on PNNT shares. StockNews.com downgraded shares of PennantPark Investment from a “hold” rating to a “sell” rating in a research report on Friday, August 9th. Compass Point raised PennantPark Investment from a “sell” rating to a “neutral” rating and set a $6.00 price objective for the company in a report on Monday, September 9th.

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.