PennantPark Investment Maintains Stable Dividend, Analysts Predict Modest Upside

PennantPark Investment Corp (PNNT) maintains a monthly dividend of $0.08 per share with a 14.26% forward yield. Analysts predict a prospective price target of $6.81, suggesting modest upside potential. Brokerage firms collectively rate PNNT as a "Hold," reflecting cautious investor sentiment.

PennantPark Investment Corp (PNNT) has reaffirmed its commitment to shareholder returns by maintaining a monthly dividend of $0.08 per share, effective July 1, 2025 [1]. This dividend offers a forward yield of 14.26%, reflecting the company's dedication to providing substantial income for investors. The dividend will be disbursed on July 1, with June 16 set as both the record date and the ex-dividend date [1].

Analysts predict a prospective price target of $6.81 for PNNT, suggesting modest upside potential. The average one-year price target, derived from four analysts, is pinned at $6.81, with a high estimate of $8.00 and a low of $5.75 [1]. This indicates an upside of 1.38% from the current trading price of $6.72. Brokerage firms collectively rate PNNT as a "Hold," reflecting cautious investor sentiment [1].

PennantPark Investment has increased its dividend payment by an average of 24.2% annually over the last three years and has raised its dividend annually for the last 1 consecutive years [2]. However, the company's dividend payout ratio of 135.2% indicates that it cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments [2].

Shares of NASDAQ PNNT traded up $0.03 during midday trading on Thursday, hitting $6.70. The stock has a 1 year low of $5.72 and a 1 year high of $8.04. The stock has a market capitalization of $437.48 million, a price-to-earnings ratio of 25.77 and a beta of 1.01. The company has a debt-to-equity ratio of 1.56, a quick ratio of 0.47 and a current ratio of 0.47 [2].

Wall Street analysts have recently changed their ratings for PNNT. Wall Street Zen upgraded PNNT from a "sell" rating to a "hold" rating on May 14, 2025. JPMorgan Chase & Co. cut their price objective from $7.00 to $6.00 and set a "neutral" rating for the company on April 24, 2025. LADENBURG THALM/SH SH upgraded PNNT to a "hold" rating on May 14, 2025. Finally, Compass Point reiterated a "sell" rating and set a $5.75 price objective for PNNT on May 21, 2025 [2].

In other PennantPark Investment news, Director Jose A. Briones purchased 3,640 shares of the company's stock on May 14, 2025, at an average cost of $6.88 per share [2].

PennantPark Investment Corp (PNNT) has announced an issue with the financial statements of JF Holdings Corp, a portfolio company. According to a filing with the Securities and Exchange Commission, the financial statements for the years ending December 31, 2024, and 2023, filed as part of an amendment to PennantPark’s annual report, do not meet the requirements of Rule 3-09 of Regulation S-X [3]. The company has taken steps to prevent further reliance on these financial statements and emphasized that the issue is isolated to JF Holdings and does not impact PennantPark’s overall financial health or previously issued statements.

References:
[1] https://www.gurufocus.com/news/2908093/pennantpark-investment-pnnt-maintains-monthly-dividend
[2] https://www.marketbeat.com/instant-alerts/pennantpark-investment-co-declares-monthly-dividend-of-008-nasdaqpnnt-2025-06-04/
[3] https://www.investing.com/news/sec-filings/pennantpark-investment-corp-addresses-financial-statement-issues-93CH-4085781