Importantly, PNNT’s equity investments have by no means performed poorly with its most recent earnings call indicating that the BDC has generated an internalised rate of return of around 26% on its equity investments. Which stocks are major institutional investors including hedge funds and endowments buying in today’s market? Click the link below and we’ll send you MarketBeat’s list of thirteen stocks that institutional investors are buying up as quickly as they can.
A hold rating indicates that analysts believe investors should maintain any existing positions they have in PNNT, but not buy additional shares or sell existing shares. 5 brokers have issued 1-year price targets for PennantPark Investment’s shares. On average, they predict the company’s stock price to reach $6.67 in the next year. View analysts price targets for PNNT or view top-rated stocks among Wall Street analysts. The underlying companies to whom loans have been advanced have also largely performed in line with expectations save for isolated instances in certain industries such as retail.
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Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. The recent growth in NAV would also support a rerating of the stock of this trend persists. Investors often discount BDC stocks to NAV on the basis of a perception that the price to NAV today is where NAV would be in the future.
However, the NII was substantially higher than normal given the special dividend received by PNNT over the settlement obtained by Dominion Voting Systems from Fox News. Excluding this one-off item, the BDC generated core NII of $0.22 which makes for a NII coverage ratio of around 105%. This indicates that the scope for further dividend increases is likely to be more limited unless there are other expansions in NII.
Price and EPS Surprise Chart
In terms of valuation, PNNT is currently trading at a discount to NAV, but recent improvements and a growing NAV could contribute to a potential rerating of the stock. As indicated, investors frequently discount BDCs with high equity exposure given the inherent difficulty in valuing that component of the portfolio. Management’s continued reduction of this segment of the portfolio therefore bodes well for a long-term rerating of the stock. These dividend increases have been well supported by net investment income (NII). PNNT has a one-year average NII coverage ratio of almost 117%, which although lower than its peers in the peer comp chart below, indicates a well-covered dividend.
- High-growth stocks tend to represent the technology, healthcare, and communications sectors.
- Nevertheless, this is an improvement over its 3-year average discount to NAV of around 32%.
- Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating.
The scores are based on the trading styles of Value, Growth, and Momentum. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.
Earnings and dividend stability
Gregg Brewer, executive director of research for Value Line, said in a radio interview that some troubled financial-services companies are long-term speculative buys, but he suggested he might continue to avoid the same co… As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Nevertheless, in my view, the dividend is now at a comfortable level in relation to NII and should not grow at a pace exceeding growth in core NII. PennantPark Investment’s stock is owned by a number of retail and institutional https://1investing.in/ investors. Insiders that own company stock include Arthur H Penn, Jose A Briones, Richard T Allorto Jr and Samuel L Katz. Style is an investment factor that has a meaningful impact on investment risk and returns.
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 seeks to invest between $10 million and $100 million cross the capital structure (senior secured loans, subordinated debt, and other investments) in its portfolio companies with EBITDA between $10 to $50 million. Its mezzanine loans, senior secured loans, and other investments in its portfolio companies are between $15 million and $50 million. PennantPark Investment Corporation is a publicly listed business development firm specializing in direct and mezzanine investments in middle market companies. The firm invests in equity securities and debt transactions through preferred stock, common stock, warrants, options, subordinated loans, mezzanine loans, and senior secured loans.
PNNT Company Calendar
Style is calculated by combining value and growth scores, which are first individually calculated. The average of price targets set by Wall Street analysts indicates a potential upside of 25.5% in PennantPark (PNNT). While the effectiveness of this highly sought-after metric is questionable, the positive… PennantPark Investment Corporation offers an attractive forward dividend yield of around 12.71% which is the highest of the major BDCs considered in the peer-comp chart below. In its most recent quarter, the BDC increased the dividend per share from $0.2 to $0.21 per share.
The firm seeks to invest between $10 million and $50 million in its portfolio companies. PennantPark Investment Corporation was founded on January 11, 2007 and is based in New York, New York. Pennant Park Investment Corp is a closed-end, non-diversified investment company. Its investment objective is to generate current income and capital appreciation also seeking to preserve capital through debt and equity investments. The company focuses on investing in US middle-market companies that offer attractive risk-reward to investors and to create a diversified portfolio that includes senior secured debt, mezzanine debt, and equity investments.
PennantPark upgraded to outperform from market perform at FBR & Co.
A growing NAV should accordingly reduce the need for a substantial discount to NAV. Investors in PNNT are, therefore, likely to monitor the NAV trajectory closely in the quarters ahead. PennantPark Investment declared a quarterly dividend on Wednesday, August 9th. Investors of record on Monday, September 18th will be given a dividend of $0.21 per share on Monday, October 2nd. This represents a $0.84 annualized dividend and a dividend yield of 12.58%. According to 5 analysts, the average rating for PNNT stock is “Buy.” The 12-month stock price forecast is $6.6, which is a decrease of -1.05% from the latest price.
It generates most of its revenue from interest and dividends received from investments made. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023.
companies unveil stock offerings
The diversified nature of PNNT’s portfolio will mitigate some of the potential adverse effects of its exposure to the struggling retail sector. Consumer products and services currently makes up around 13.6% of PNNT’s portfolio and likely presents the sector that should be monitored most closely by investors in upcoming quarters. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.
- However, it also has a fairly substantial exposure to equities with around 22% of its portfolio consisting of common and preferred equity.
- 5 brokers have issued 1-year price targets for PennantPark Investment’s shares.
- As an investor, you want to buy stocks with the highest probability of success.
- At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
- Insiders that own company stock include Arthur H Penn, Jose A Briones, Richard T Allorto Jr and Samuel L Katz.
This was also the sixth consecutive quarter in which the dividend per share for PNNT was increased having grown from $0.14 per share in March 2022 to the current $0.21 per share. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.