Pennantpark Investment Corp. (PNNT)
NYSE:PNNT
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Pennantpark Investment
(NYSE:PNNT)
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Rating:58Neutral
Price Target:
$4.50
â–¼(-5.46% Downside)
Action:ReiteratedDate:04/03/26
The score is driven primarily by middling financial quality (solid recent profitability and cash flow but meaningful multi-year volatility and elevated leverage) and weak technicals (price below key moving averages with negative momentum). Valuation is supportive (low-ish P/E and very high yield), while the latest earnings call was moderately positive on dividend visibility through 2026 and credit metrics, tempered by NAV pressure and reliance on spillover income for the supplemental payout.
Positive Factors
Dividend Visibility
Management’s explicit plan to maintain a $0.04 base dividend supported by core NII and a $0.04 supplemental through Dec 2026 provides multi-quarter cash flow visibility. This commitment reflects recurring income generation capacity and disciplined payout policy that supports income-focused shareholders over the medium term.
Negative Factors
Elevated Leverage
Persistently high debt-to-equity (~1.6) constrains financial flexibility and amplifies earnings and NAV volatility. Elevated leverage increases sensitivity to credit losses and rising funding costs, limiting capacity to opportunistically originate or retain cushions against downturns absent active deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Dividend Visibility
Management’s explicit plan to maintain a $0.04 base dividend supported by core NII and a $0.04 supplemental through Dec 2026 provides multi-quarter cash flow visibility. This commitment reflects recurring income generation capacity and disciplined payout policy that supports income-focused shareholders over the medium term.
Read all positive factors
Pennantpark Investment (PNNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$306.89M
Dividend Yield16.61%
Average Volume (3M)801.66K
Price to Earnings (P/E)10.6
Beta (1Y)0.60
Revenue Growth84.11%
EPS Growth56.99%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.11
Shares Outstanding65,296,100
10 Day Avg. Volume656,819
30 Day Avg. Volume801,658
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 Cap2.91
Enterprise Value/Revenue11.15
Enterprise Value/Gross Profit24.74
Enterprise Value/Ebitda34.15
Forecast
1Y Price Target
$5.25Price Target Upside10.29% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.56
Revenue Forecast (FY)$106.99M
Pennantpark Investment Business Overview & Revenue Model
Company Description
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 inve...
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:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and credit story: disciplined underwriting, strong realized gains (JF exit), attractive JV yields (16.4%), low nonaccruals, continued originations, and concrete steps to address funding maturities. At the same time, management acknowledged challenges: a modest NAV decline (-1.5% QoQ), reliance on $41M of spillover income to support supplemental dividends through 2026, remaining equity exposure to be rotated, elevated JV leverage/equity markdowns, and competitive funding cost headwinds due to trading at a discount. On balance the company highlighted several material positives and a clear plan to reduce equity exposure and manage liquidity, while transparently addressing the key risks and funding tasks ahead.Positive Updates
Core Net Investment Income and Dividend Policy
Core NII of $0.14 per share for the quarter ended Dec 31. Company declared an April dividend of $0.08 per share composed of $0.04 base (expected to be supported by current core NII) and $0.04 supplemental, with the $0.04 supplemental to be paid through December 2026 and funded by $41 million ($0.63 per share) of undistributed spillover income.
Negative Updates
NAV Decline
Net asset value was $7.00 per share as of Dec 31, down 1.5% from $7.11 per share in the prior quarter, indicating modest mark-to-market pressure.
Read all updates
Q1-2026 Updates
Positive
Negative
Core Net Investment Income and Dividend Policy
Core NII of $0.14 per share for the quarter ended Dec 31. Company declared an April dividend of $0.08 per share composed of $0.04 base (expected to be supported by current core NII) and $0.04 supplemental, with the $0.04 supplemental to be paid through December 2026 and funded by $41 million ($0.63 per share) of undistributed spillover income.
Read all positive updates
Company Guidance
The company guided that the April dividend will total $0.08 per share (a $0.04 base dividend supported by current core NII and a $0.04 supplemental dividend supported by $41 million of undistributed spillover, or $0.63 per share) and expects to maintain the $0.04 supplemental through December 2026; core NII was $0.14/sh (GAAP NII $0.11) for the quarter, NAV was $7.00 (down 1.5% from $7.11), and management intends to keep leverage roughly in the 1.2x–1.3x debt-to-equity range (currently 1.3x) while chipping away at maturities (including a $75M unsecured debt raise in January). Portfolio guidance emphasized continued rotation away from equity exposure after monetizing JF Holdings for $68M (realized gain $63M, monetizing ~20% of equity fair value), continued focus on core middle‑market first‑lien loans (weighted average debt yield 10.9%, median debt/EBITDA 4.5x, median interest coverage 2.1x), and JV-driven earnings upside (platform portfolio $1.2B, PSLF JV $1.4B with $1.5B capacity, 12‑month average NII yield on invested capital and JV 16.4%); other quarter metrics included $115M invested in the quarter, 4 nonaccruals (2.2% of portfolio at cost, 1.1% at market), 89% floating‑rate debt, software at 4.4% of the portfolio (avg maturity ~2.2 years), and long‑term track record of $9.2B invested since inception at an 11.2% average yield (equity co‑invests: $615M invested, 25% IRR, 1.9x MOIC).Pennantpark Investment Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.02M | 83.08M | 103.70M | 19.24M | 23.80M | 193.82M |
| Gross Profit | 36.06M | 41.76M | 58.51M | -20.17M | -4.96M | 171.31M |
| EBITDA | 26.12M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M |
| Net Income | 25.60M | 32.73M | 48.85M | -33.81M | -24.74M | 166.62M |
Balance Sheet | ||||||
| Total Assets | 1.29B | 1.35B | 1.39B | 1.16B | 1.32B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 17.66M | 51.78M | 49.86M | 38.77M | 54.77M | 20.36M |
| Total Debt | 609.31M | 738.88M | 772.01M | 516.84M | 704.51M | 607.34M |
| Total Liabilities | 836.28M | 885.60M | 895.18M | 654.79M | 735.05M | 634.95M |
| Stockholders Equity | 457.23M | 463.95M | 493.91M | 502.19M | 585.57M | 660.14M |
Cash Flow | ||||||
| Free Cash Flow | 272.38M | 66.12M | -172.40M | 222.94M | -17.29M | 7.91M |
| Operating Cash Flow | 272.38M | 66.12M | -172.40M | 222.94M | -17.29M | 7.91M |
| Investing Cash Flow | -51.80M | 38.66M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -230.68M | -102.91M | 183.43M | -239.16M | 52.04M | -13.42M |
Pennantpark Investment Technical Analysis
Neutral
4.76
Price Trends
4.70
Positive
5.14
Negative
5.66
Negative
Market Momentum
-0.03
Negative
58.90
Neutral
81.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNNT, the sentiment is Neutral. The current price of 4.76 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.70, and below the 200-day MA of 5.66, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 81.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $373.94M | 4.72 | 17.30% | 6.55% | -2.67% | 18.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $306.89M | 10.64 | 5.42% | 16.61% | 84.11% | 56.99% | |
56 Neutral | $427.01M | 19.71 | 7.50% | 9.31% | -43.48% | -65.43% | |
55 Neutral | $279.92M | 13.30 | 0.03% | 12.83% | 16.48% | -46.87% | |
53 Neutral | $363.87M | -5.23 | -12.44% | 21.13% | -139.70% | -46.02% | |
53 Neutral | $391.85M | -24.53 | -2.75% | 15.77% | -10.20% | -162.66% |
* Financial Sector Average
PNNT
Pennantpark Investment
4.77
-0.70
-12.77%
GLAD
Gladstone Capital
19.26
-3.90
-16.84%
NEWT
Newtek Business
13.12
3.91
42.39%
SCM
Stellus Capital
9.83
-1.44
-12.75%
TCPC
BlackRock TCP Capital
4.39
-1.17
-21.10%
CION
CION Investment Corp
7.98
-0.37
-4.47%
Pennantpark Investment Corporate Events
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...
Executive/Board ChangesShareholder Meetings
PennantPark Shareholders Reelect Directors and Ratify Auditor
Positive
Feb 5, 2026
At its annual meeting of stockholders held on February 3, 2026, PennantPark Investment Corporation’s shareholders elected two Class I directors, Samuel Katz and Marshall Brozost, to serve on the board until the 2029 annual meeting, reflectin...
Dividends
PennantPark Investment Declares February 2026 Monthly Distribution
Positive
Feb 3, 2026
On February 3, 2026, PennantPark Investment Corporation declared a monthly cash distribution for February 2026 of $0.08 per share, payable on March 2, 2026, to stockholders of record as of February 17, 2026. The distribution is expected to be fund...
Private Placements and FinancingRegulatory Filings and Compliance
PennantPark Investment Issues $75 Million Senior Unsecured Notes
Positive
Jan 30, 2026
On January 30, 2026, PennantPark Investment Corporation entered into a Note Purchase Agreement to issue $75 million of 7.00% senior unsecured notes due February 1, 2029, in a private placement to a qualified institutional investor. The notes, whic...
Financial Disclosures
PennantPark Schedules First-Quarter 2026 Earnings Release, Call
Neutral
Jan 6, 2026
On January 6, 2026, PennantPark Investment Corporation announced it would release financial results for its first fiscal quarter ended December 31, 2025, after the market close on February 9, 2026, and host a conference call on February 10, 2026, ...
Dividends
PennantPark Investment Declares January 2026 Monthly Distribution
Positive
Jan 5, 2026
On January 5, 2026, PennantPark Investment Corporation announced it had declared a monthly cash distribution for January 2026 of $0.08 per share, payable on February 2, 2026 to stockholders of record as of January 16, 2026. The distribution was ex...
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.