PennantPark Investment (NASDAQ:PNNT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Thursday, 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 several other reports. ValuEngine upgraded shares of PennantPark Investment from a “sell” rating to a “hold” rating in a report on Tuesday, December 3rd. BidaskClub cut shares of PennantPark Investment from a “buy” rating to a “hold” rating in a report on Thursday, February 6th. Finally, JPMorgan Chase & Co. cut shares of PennantPark Investment from a “neutral” rating to an “underweight” rating and cut their price target for the stock from $6.50 to $6.00 in a report on Tuesday, October 29th. Three investment analysts have rated the stock with a sell rating, three have assigned 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 $7.13.
PennantPark Investment stock opened at $6.59 on Thursday. PennantPark Investment has a fifty-two week low of $5.84 and a fifty-two week high of $7.34. The stock has a market cap of $439.82 million, a PE ratio of 10.41 and a beta of 1.07. The firm’s 50-day simple moving average is $6.59 and its 200 day simple moving average is $6.35. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.46 and a current ratio of 0.46.
PennantPark Investment (NASDAQ:PNNT) last released its quarterly earnings results on Thursday, February 6th. The asset manager reported $0.15 earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.02). PennantPark Investment had a return on equity of 7.19% and a net margin of 25.60%. The firm had revenue of $26.00 million for the quarter, compared to analysts’ expectations of $27.53 million. As a group, analysts predict that PennantPark Investment will post 0.66 EPS for the current fiscal year.
In related news, CEO Arthur H. Penn bought 10,000 shares of the company’s stock in a transaction on Wednesday, February 12th. The shares were purchased at an average cost of $6.56 per share, for a total transaction of $65,600.00. Following the completion of the purchase, the chief executive officer now directly owns 193,410 shares in the company, valued at $1,268,769.60. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Arthur H. Penn bought 16,000 shares of the company’s stock in a transaction on Monday, December 2nd. The stock was bought at an average price of $6.17 per share, for a total transaction of $98,720.00. Following the completion of the purchase, the chief executive officer now owns 193,410 shares of the company’s stock, valued at $1,193,339.70. The disclosure for this purchase can be found here. Over the last quarter, insiders acquired 42,000 shares of company stock worth $261,600. Corporate insiders own 3.00% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC boosted its stake in PennantPark Investment by 515.4% in the third quarter. Tower Research Capital LLC TRC now owns 5,422 shares of the asset manager’s stock valued at $34,000 after acquiring an additional 4,541 shares during the last quarter. PVG Asset Management Corp purchased a new position in PennantPark Investment in the third quarter valued at about $67,000. Koshinski Asset Management Inc. purchased a new position in PennantPark Investment in the fourth quarter valued at about $80,000. Wealthspire Advisors L.P. purchased a new position in PennantPark Investment in the fourth quarter valued at about $85,000. Finally, Raymond James Financial Services Advisors Inc. purchased a new position in PennantPark Investment in the fourth quarter valued at about $92,000. Hedge funds and other institutional investors own 39.02% 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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