Zacks Investment Research Lowers PennantPark Investment (NASDAQ:PNNT) to Sell

Zacks Investment Research lowered shares of PennantPark Investment (NASDAQ:PNNT) from a hold rating to a sell rating in a research note issued to investors on Friday, 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. “

PNNT has been the topic of a number of other research reports. TheStreet cut PennantPark Investment from a b- rating to a c rating in a research note on Tuesday, July 16th. ValuEngine cut PennantPark Investment from a hold rating to a sell rating in a research note on Tuesday, June 18th. Finally, BidaskClub cut PennantPark Investment from a sell rating to a strong sell rating in a research note on Saturday, September 7th. Three analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company’s stock. PennantPark Investment has an average rating of Hold and an average target price of $7.50.

Shares of PNNT opened at $6.29 on Friday. The stock’s 50-day moving average is $6.34 and its two-hundred day moving average is $6.63. The stock has a market cap of $417.02 million, a PE ratio of 8.39 and a beta of 1.14. PennantPark Investment has a 12 month low of $6.16 and a 12 month high of $7.67. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.26 and a quick ratio of 1.26.

PennantPark Investment (NASDAQ:PNNT) last issued its quarterly earnings data on Wednesday, August 7th. The asset manager reported $0.17 EPS for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.02). The company had revenue of $28.11 million for the quarter, compared to analyst estimates of $29.38 million. PennantPark Investment had a return on equity of 8.08% and a net margin of 18.01%. On average, research analysts anticipate that PennantPark Investment will post 0.71 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Stockholders of record on Tuesday, September 17th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.45%. The ex-dividend date is Monday, September 16th. PennantPark Investment’s payout ratio is 96.00%.

In other PennantPark Investment news, Chairman Arthur H. Penn bought 15,000 shares of the company’s stock in a transaction dated Friday, August 9th. The shares were acquired at an average cost of $6.39 per share, with a total value of $95,850.00. Following the completion of the transaction, the chairman now owns 193,410 shares in the company, valued at $1,235,889.90. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last ninety days, insiders have bought 45,000 shares of company stock worth $285,600. Corporate insiders own 2.00% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in PNNT. Quantamental Technologies LLC increased its position in shares of PennantPark Investment by 2,255.0% during the second quarter. Quantamental Technologies LLC now owns 3,980 shares of the asset manager’s stock worth $25,000 after acquiring an additional 3,811 shares during the last quarter. Cambridge Investment Research Advisors Inc. bought a new stake in PennantPark Investment in the second quarter valued at about $77,000. Moors & Cabot Inc. bought a new stake in PennantPark Investment in the first quarter valued at about $96,000. Quad Cities Investment Group LLC increased its holdings in PennantPark Investment by 7,500.0% in the second quarter. Quad Cities Investment Group LLC now owns 15,200 shares of the asset manager’s stock valued at $97,000 after buying an additional 15,000 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in PennantPark Investment by 30.5% in the fourth quarter. Bank of America Corp DE now owns 16,860 shares of the asset manager’s stock valued at $108,000 after buying an additional 3,936 shares during the last quarter. 43.20% of the stock is currently owned by institutional investors and hedge funds.

PennantPark Investment Company Profile

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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