Pennantpark Investment (PNNT)
NYSE:PNNT
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Pennantpark Investment
(NYSE:PNNT)
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Rating:50Neutral
Price Target:
$4.00
▼(-15.97% Downside)
Action:Reiterated
Date:06/03/26
PNNT scores in the low-to-mid range primarily due to volatile financial performance (uneven profitability and inconsistent cash generation with weak recent cash conversion) and bearish technicals (below key moving averages with negative MACD). These are partially offset by income appeal from a very high dividend yield and a moderately positive earnings-call backdrop highlighting JV yield strength and potential realizations despite NAV pressure and some credit stress.
Positive Factors
High JV NII Yield & Growth Capacity
A high-yield JV (15.8% LTM) with explicit capacity to expand provides durable, outsized net investment income that complements PNNT’s core portfolio. Growing JV scale can sustainably boost distributable earnings and diversify earnings sources over the next several quarters.
Negative Factors
Inconsistent Cash Generation
Volatile and sometimes negative operating cash flow, plus a sharp TTM decline in free cash flow versus prior periods, signals earnings that do not consistently convert to cash. That undermines dividend sustainability, reduces buffer for losses, and limits reinvestment flexibility over months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
High JV NII Yield & Growth Capacity
A high-yield JV (15.8% LTM) with explicit capacity to expand provides durable, outsized net investment income that complements PNNT’s core portfolio. Growing JV scale can sustainably boost distributable earnings and diversify earnings sources over the next several quarters.
Read all positive factors
Pennantpark Investment (PNNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$251.39M
Dividend Yield16.61%
Average Volume (3M)873.47K
Price to Earnings (P/E)17.8
Beta (1Y)0.57
Revenue Growth122.81%
EPS Growth43.00%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.21
Shares Outstanding65,296,100
10 Day Avg. Volume640,008
30 Day Avg. Volume873,468
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.94
Price to Sales (P/S)5.27
P/FCF Ratio6.63
Enterprise Value/Market Cap829.71
Enterprise Value/Revenue2.54K
Enterprise Value/Gross Profit4.90K
Enterprise Value/Ebitda9.34K
Forecast
1Y Price Target
$4.67Price Target Upside-1.96% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.55
Revenue Forecast (FY)$105.03M
Pennantpark Investment Business Overview & Revenue Model
Company Description
PennantPark Investment Corporation operates as a Business Development Company (BDC) and a private equity fund. Its primary focus is on providing direct and mezzanine capital to middle-market companies situated across the United States. The firm de...
How the Company Makes Money
PennantPark Investment Corporation makes money primarily from income earned on its investment portfolio. Its core revenue stream is interest income from debt investments (such as secured loans) made to portfolio companies, which may include recurr...
Pennantpark Investment Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted disciplined underwriting, strong JV yields (15.8%), limited and structured software exposure (~4.6%), a material near-term equity realization (Echelon ~15x multiple) and proactive funding actions, which weigh positively. Offsetting these are an $11.7M net loss, a 3.9% NAV decline, modest nonaccrual exposure (2.7% at cost) and a slight miss versus NII consensus driven by a smaller average portfolio. Overall, the positives around portfolio construction, JV performance, equity co-invest track record and conservative underwriting outweigh the headline quarterly pressures.Positive Updates
Core Net Investment Income
Core NII (and GAAP NII) of $0.14 per share for the quarter, reflecting recurring earnings power and consistent dividend-generation focus.
Negative Updates
Net Realized and Unrealized Losses
Net realized and unrealized change on investments and debt was a loss of $11.7 million for the quarter (including provision for taxes), pressuring reported results and NAV.
Read all updates
Q2-2026 Updates
Positive
Negative
Core Net Investment Income
Core NII (and GAAP NII) of $0.14 per share for the quarter, reflecting recurring earnings power and consistent dividend-generation focus.
Read all positive updates
Company Guidance
Management guided that core NII was $0.14 per share for Q2 with a $1.2 billion portfolio after investing $108 million during the quarter (six new platform investments at a median debt/EBITDA of 3.0x, interest coverage 3.4x and loan‑to‑value of 28%); overall portfolio medians were debt/EBITDA 4.7x, interest coverage 2.0x and LTV 45%, with four nonaccruals equal to 2.7% of portfolio at cost (1.3% at market). They noted the PSLF JV portfolio at $1.3 billion (PNNT’s average NII yield on JV invested capital 15.8% LTM) has capacity to grow to $1.5 billion and should enhance earnings as it expands; software exposure is limited (~4.6% of portfolio) while government services/defense is ~12%. Portfolio metrics include a weighted average yield on debt of 10.9%, 48% first‑lien, 24% other equity co‑investments, 88% floating rate; NAV was $6.73 (-3.9% q/q) and debt‑to‑equity 1.35x. They expect meaningful realizations (notably Echelon: $1.1M equity -> ~ $16M proceeds, ~$14M cash + ~$2M stock, ~15x MOIC, expected to close in ~60 days) and plan to redeploy proceeds into income‑generating loans, where pricing for high‑quality first‑lien term loans is around SOFR +500–550 bps with ~4.5x leverage.Pennantpark Investment Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
52
Neutral
Cash Flow
39
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.28M | 83.08M | 103.70M | 19.24M | 23.80M | 193.82M |
| Gross Profit | 42.60M | 41.76M | 58.51M | -20.17M | -4.96M | 171.31M |
| EBITDA | 22.33M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M |
| Net Income | 13.81M | 32.73M | 48.85M | -33.81M | -24.74M | 166.62M |
Balance Sheet | ||||||
| Total Assets | 1.26T | 1.35B | 1.39B | 1.16B | 1.32B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 15.07B | 51.78M | 49.86M | 38.77M | 54.77M | 20.36M |
| Total Debt | 223.40B | 738.88M | 772.01M | 516.84M | 704.51M | 607.34M |
| Total Liabilities | 818.83B | 885.60M | 895.18M | 654.79M | 735.05M | 634.95M |
| Stockholders Equity | 439.23B | 463.95M | 493.91M | 502.19M | 585.57M | 660.14M |
Cash Flow | ||||||
| Free Cash Flow | 161.13M | 66.12M | -172.40M | 222.94M | -17.29M | 7.91M |
| Operating Cash Flow | 161.13M | 66.12M | -172.40M | 222.94M | -17.29M | 7.91M |
| Investing Cash Flow | -46.53M | 38.66M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -102.30M | -102.91M | 183.43M | -239.16M | 52.04M | -13.42M |
Pennantpark Investment Technical Analysis
Negative
4.76
Price Trends
4.23
Negative
4.54
Negative
5.15
Negative
Market Momentum
-0.12
Negative
41.54
Neutral
18.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNNT, the sentiment is Negative. The current price of 4.76 is above the 20-day moving average (MA) of 3.88, above the 50-day MA of 4.23, and below the 200-day MA of 5.15, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 18.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNNT.
Pennantpark Investment Risk Analysis
Pennantpark Investment disclosed 85 risk factors in its most recent earnings report. Pennantpark Investment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pennantpark Investment Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $438.08M | 9.97 | 8.94% | 9.31% | -46.94% | -51.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $404.02M | 6.76 | 17.20% | 6.55% | 20.30% | 19.12% | |
54 Neutral | $317.99M | -2.53 | -19.08% | 21.13% | -153.69% | -168.78% | |
53 Neutral | $260.81M | 11.00 | ― | 12.83% | 6.21% | -42.00% | |
52 Neutral | $347.53M | -370.54 | -0.13% | 15.77% | -11.90% | 84.61% | |
50 Neutral | $251.39M | 17.83 | 0.01% | 16.61% | 122.81% | 43.00% |
* Financial Sector Average
PNNT
Pennantpark Investment
3.85
-1.83
-32.23%
GLAD
Gladstone Capital
19.39
-4.78
-19.77%
NEWT
Newtek Business
14.00
4.22
43.21%
SCM
Stellus Capital
9.01
-2.93
-24.56%
TCPC
BlackRock TCP Capital
3.79
-2.58
-40.46%
CION
CION Investment Corp
6.98
-0.94
-11.86%
Pennantpark Investment Corporate Events
Dividends
PennantPark Investment Announces June 2026 Monthly Distribution
Positive
Jun 2, 2026
On June 2, 2026, PennantPark Investment Corporation declared a June 2026 monthly distribution of $0.08 per share, split between a $0.04 base dividend and a $0.04 supplemental dividend. The payout is scheduled for July 1, 2026 to stockholders of re...
DividendsFinancial Disclosures
PennantPark Investment Declares May 2026 Monthly Distribution
Positive
May 4, 2026
On May 4, 2026, PennantPark Investment Corporation declared a monthly distribution for May 2026 of $0.08 per share, split between a $0.04 base dividend and a $0.04 supplemental dividend. The payout is scheduled for June 1, 2026 to stockholders of ...
Financial Disclosures
PennantPark Investment Sets Date for Q2 2026 Results
Neutral
Apr 6, 2026
On April 6, 2026, PennantPark Investment Corporation announced plans to release its financial results for the second fiscal quarter ended March 31, 2026, after markets close on May 7, 2026. The company will hold a conference call at noon Eastern t...
Dividends
PennantPark Investment Declares April 2026 Monthly Distribution
Positive
Apr 2, 2026
PennantPark Investment Corporation, a business development company focused on U.S. middle‑market private companies through a mix of secured debt, subordinated debt and equity, is managed by PennantPark Investment Advisers, which oversees abo...
Dividends
PennantPark Investment Announces March 2026 Monthly Distribution
Positive
Mar 3, 2026
On March 3, 2026, PennantPark Investment Corporation declared a monthly distribution for March 2026 of $0.08 per share, split evenly between a $0.04 base dividend and a $0.04 supplemental dividend. The payout is scheduled for April 1, 2026, to sha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.