Zacks Investment Research Lowers PennantPark Investment (PNNT) to Hold

Zacks Investment Research lowered shares of PennantPark Investment (NASDAQ:PNNT) from a buy rating to a hold rating in a report released on Wednesday morning, Zacks.com reports.

According to Zacks, “PennantPark Investment Corporation is a business development company which principally invests in U.S. middle-market private companies in the form of mezzanine debt, senior secured loans and equity investments. The companies in which it invests are typically highly leveraged, often as a result of leveraged buy-outs or other recapitalization transactions. PennantPark’s investment objectives are to generate both current income and capital appreciation through debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC. “

A number of other equities analysts also recently weighed in on PNNT. LADENBURG THALM/SH SH downgraded PennantPark Investment from a buy rating to a neutral rating in a research note on Monday. BidaskClub downgraded PennantPark Investment from a buy rating to a hold rating in a research note on Friday, April 5th. Compass Point downgraded PennantPark Investment from a buy rating to a neutral rating and cut their target price for the stock from $8.50 to $7.00 in a research note on Friday, May 3rd. Raymond James assumed coverage on PennantPark Investment in a research note on Monday, April 29th. They issued an outperform rating and a $8.00 target price on the stock. Finally, JPMorgan Chase & Co. downgraded PennantPark Investment from an overweight rating to a neutral rating and cut their target price for the stock from $7.50 to $7.00 in a research note on Wednesday, January 16th. One analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $7.60.

Shares of NASDAQ PNNT traded up $0.04 during midday trading on Wednesday, reaching $6.59. The company’s stock had a trading volume of 4,889 shares, compared to its average volume of 286,632. PennantPark Investment has a 12-month low of $6.21 and a 12-month high of $7.84. The company has a market capitalization of $440.49 million, a PE ratio of 8.79 and a beta of 1.21. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 1.13.

PennantPark Investment (NASDAQ:PNNT) last announced its earnings results on Thursday, May 9th. The asset manager reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.01). PennantPark Investment had a return on equity of 7.94% and a net margin of 28.97%. The business had revenue of $28.69 million during the quarter, compared to analysts’ expectations of $28.89 million. As a group, research analysts expect that PennantPark Investment will post 0.74 EPS for the current fiscal year.

In other PennantPark Investment news, Chairman Arthur H. Penn bought 16,000 shares of the business’s stock in a transaction dated Monday, May 13th. The shares were purchased at an average price of $6.52 per share, for a total transaction of $104,320.00. Following the purchase, the chairman now directly owns 193,410 shares of the company’s stock, valued at $1,261,033.20. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Chairman Arthur H. Penn acquired 15,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 15th. The stock was purchased at an average price of $6.58 per share, for a total transaction of $98,700.00. Following the purchase, the chairman now owns 193,410 shares of the company’s stock, valued at approximately $1,272,637.80. The disclosure for this purchase can be found here. 2.00% of the stock is owned by insiders.

A number of institutional investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. lifted its stake in PennantPark Investment by 9.3% in the first quarter. JPMorgan Chase & Co. now owns 3,567,869 shares of the asset manager’s stock valued at $24,655,000 after purchasing an additional 304,206 shares during the last quarter. ArrowMark Colorado Holdings LLC lifted its stake in PennantPark Investment by 15.4% in the first quarter. ArrowMark Colorado Holdings LLC now owns 2,135,392 shares of the asset manager’s stock valued at $14,756,000 after purchasing an additional 284,743 shares during the last quarter. West Family Investments Inc. lifted its stake in PennantPark Investment by 13.4% in the fourth quarter. West Family Investments Inc. now owns 1,030,880 shares of the asset manager’s stock valued at $6,589,000 after purchasing an additional 122,166 shares during the last quarter. Confluence Investment Management LLC lifted its stake in PennantPark Investment by 14.6% in the first quarter. Confluence Investment Management LLC now owns 926,026 shares of the asset manager’s stock valued at $6,399,000 after purchasing an additional 117,764 shares during the last quarter. Finally, Relative Value Partners Group LLC lifted its stake in PennantPark Investment by 2.7% in the fourth quarter. Relative Value Partners Group LLC now owns 731,389 shares of the asset manager’s stock valued at $4,791,000 after purchasing an additional 19,539 shares during the last quarter. Institutional investors and hedge funds own 44.97% of the company’s stock.

About PennantPark Investment

PennantPark Investment Corporation 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 building and real estate, hotels and gaming, electronics, healthcare, education and childcare, financial services, printing and publishing, consumer products, business services, energy and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, manufacturing industries and retail.

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