PFLT Soars 1.79% on UBS Target Hike, Dividend News

PennantPark Floating Rate Capital Ltd. (PFLT) has seen a 0.74% increase in its stock price, marking two consecutive days of gains and a total increase of 1.79% over the past two days.

The strategy of purchasing PennantPark Floating Rate Capital (PFLT) shares after they reached a recent peak and holding them for one week yielded moderate returns but underperformed the market. The annualized return was 4.76%, which is lower than the S&P 500's annualized return of 6.17% over the same period. This suggests that while the strategy provided a positive return, it did so at a lower rate than the broader market. The maximum drawdown of -9.41% during the backtest period also indicates a higher risk compared to the S&P 500's maximum drawdown of -11.20%. Overall, the strategy offered modest returns with considerable volatility, making it less attractive compared to a buy-and-hold approach to PFLT or a broader index fund.

UBS recently adjusted its price target for PFLT, raising it from $10.50 to $10.75. Despite maintaining a "Neutral" rating, this adjustment suggests a positive outlook for the company, which could influence investor sentiment and potentially impact the stock price.

On July 2, 2025, PennantPark Floating Rate Capital announced a dividend of $0.10 per share for shareholders of record as of July 15, 2025. Dividend announcements often have a significant impact on stock prices, as they directly affect investor returns and can attract income-focused investors.