Pennantpark Investment (PNNT) AI Stock Analysis

• Market Cap: $468.17M
• Dividend Yield: 13.39%
• Average Volume (3M): 461.29K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.53
• Revenue Growth: -35.46%
• EPS Growth: -67.15%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 65,296,100
• 10 Day Avg. Volume: 497,510
• 30 Day Avg. Volume: 461,289
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 10.89
• Enterprise Value/Gross Profit: 14.34
• Enterprise Value/Ebitda: 17.41
• 1Y Price Target: $6.75
• Price Target Upside: -5.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: ―

PennantPark Investment's overall stock score reflects significant concerns due to mixed financial performance marked by high leverage and inconsistent cash flows. The technical indicators suggest a bearish trend, while the valuation highlights possible overvaluation despite a high dividend yield. The earnings call presents both growth opportunities and substantial challenges, particularly with income not covering dividends and high nonaccruals. These elements collectively lead to a cautious outlook on the stock.

Pennantpark Investment Business Overview & Revenue Model

Company Description

PennantPark Investment Corporation (PNNT) is a business development company that primarily invests in U.S. middle-market companies. The company focuses on providing capital to these companies in the form of debt and equity investments. PennantPark's investment portfolio spans various sectors, including healthcare, consumer products, and energy, with the goal of generating both current income and capital appreciation for its investors.

How the Company Makes Money

PennantPark Investment Corporation makes money primarily through the interest and dividend income generated from its investment portfolio, which consists of debt and equity investments in middle-market companies. The company earns interest income from its debt investments, which typically include senior secured loans, mezzanine loans, and other credit instruments. Additionally, PennantPark may realize capital gains from the sale of equity investments. The firm also benefits from management fees and incentive fees through its role in managing investment funds and partnerships. Key factors contributing to its earnings include the performance of its portfolio companies, interest rate environments, and overall economic conditions.

Pennantpark Investment Financial Statement Overview

Summary

Pennantpark Investment exhibits a mixed financial position characterized by inconsistent income and cash flow performance and high leverage, posing potential risks. While there are some positive elements, such as improved TTM net income, overall stability and growth remain concerns.

Income Statement

The income statement shows mixed performance with a positive TTM net income but a negative EBIT indicating challenges in operational efficiency. Revenue growth is inconsistent with significant fluctuations year-over-year.

Balance Sheet

The balance sheet reflects high leverage with a substantial debt-to-equity ratio, indicating potential financial risk. Equity has decreased over the period, impacting the company's stability.

Cash Flow

Cash flow statements reveal volatility, with inconsistent operating cash flow trends. The operating cash flow to net income ratio shows potential issues in cash generation relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.34M	110.17M	145.37M	142.64M	171.31M	100.22M
Gross Profit	70.12M	79.09M	145.37M	119.16M	81.59M	100.22M
EBITDA	57.74M	51.95M	0.00	-16.86M	-18.53M	152.95M
Net Income	52.06M	48.85M	-33.81M	-24.74M	166.62M	-15.97M
Balance Sheet
Total Assets	1.25B	1.39B	1.16B	1.32B	1.30B	1.11B
Cash, Cash Equivalents and Short-Term Investments	70.55M	49.86M	38.77M	54.77M	20.36M	25.81M
Total Debt	149.25M	772.01M	516.84M	704.51M	607.34M	568.31M
Total Liabilities	772.30M	895.18M	654.79M	732.95M	634.95M	588.64M
Stockholders Equity	480.58M	493.91M	502.19M	585.57M	660.14M	525.71M
Cash Flow
Free Cash Flow	207.91M	-172.40M	222.94M	-19.40M	7.91M	-129.60M
Operating Cash Flow	207.91M	-172.40M	222.94M	-19.40M	7.91M	-129.60M
Investing Cash Flow	-12.02M	-219.06M	43.45M	-22.14M	-6.89B	-156.61B
Financing Cash Flow	-196.70M	183.43M	-239.16M	52.04M	-13.42M	95.78M

Pennantpark Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNNT, the sentiment is Positive. The current price of 7.17 is above the 20-day moving average (MA) of 7.16, above the 50-day MA of 7.02, and above the 200-day MA of 6.56, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 41.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNNT.

Pennantpark Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIN	71 Outperform	$536.60M	6.48	16.54%	10.70%	33.75%	6.20%
GLAD	70 Neutral	$588.39M	7.82	16.23%	9.06%	47.88%	-5.08%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
SAR	68 Neutral	$359.54M	10.29	9.27%	12.08%	-1.64%	104.07%
SCM	64 Neutral	$413.74M	10.04	10.88%	10.89%	65.75%	14.28%
CION	58 Neutral	$565.66M	15.47	-1.27%	14.30%	-11.83%	-108.11%
PNNT	48 Neutral	$468.17M	33.21	2.89%	13.39%	-35.46%	-67.15%

Pennantpark Investment Corporate Events

PennantPark Announces May 2025 Monthly Distribution

On May 2, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for May 2025, payable on June 2, 2025, to stockholders of record as of May 15, 2025. This distribution is expected to be paid from taxable net investment income, and its tax characteristics will be reported to stockholders after the end of the calendar year. This announcement reflects the company’s ongoing commitment to providing returns to its investors and maintaining its position in the middle-market investment sector.

Spark’s Take on PNNT Stock

According to Spark, TipRanks’ AI Analyst, PNNT is a Neutral.

PennantPark Investment’s stock is facing challenges primarily due to its mixed financial performance and bearish technical indicators. High leverage and inconsistent cash flow raise concerns about financial stability. Despite attractive dividend yields, the stock’s high P/E ratio suggests it may be overvalued. The recent earnings call revealed both opportunities and challenges, underscoring the need for caution.

To see Spark’s full report on PNNT stock, click here.

PennantPark Investment Appoints New Chief Compliance Officer

On April 15, 2025, Frank Galea resigned as Chief Compliance Officer of PennantPark Investment Corporation, with no disagreements reported regarding company operations or policies. Gerald Cummins, a seasoned professional with experience at ACA Group and Alaric Compliance Services, LLC, was appointed as the new Chief Compliance Officer, marking a seamless leadership transition.

Spark’s Take on PNNT Stock

According to Spark, TipRanks’ AI Analyst, PNNT is a Neutral.

PennantPark Investment’s overall score is driven by its mixed financial performance with high leverage and cash flow concerns. Technical indicators suggest a bearish trend, while valuation metrics present a high P/E ratio but substantial dividend yield. The earnings call highlighted growth in JV investments but also raised concerns about income sustainability and nonaccruals.

To see Spark’s full report on PNNT stock, click here.

PennantPark Investment to Announce Q2 2025 Results

On April 3, 2025, PennantPark Investment Corporation announced its plan to release its financial results for the second fiscal quarter ended March 31, 2025, on May 12, 2025, after market close. The company will host a conference call on May 13, 2025, to discuss these results, indicating its commitment to transparency and stakeholder engagement. This announcement may impact stakeholders by providing insights into the company’s financial health and operational performance.

PennantPark Investment Announces April 2025 Distribution

On April 2, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for April 2025, payable on May 1, 2025, to stockholders of record as of April 15, 2025. This distribution is expected to be paid from taxable net investment income, with final tax characteristics reported on Form 1099 after the year-end. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders through regular distributions.

PennantPark Investment Declares March 2025 Distribution

On March 4, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for March 2025, payable on April 1, 2025, to stockholders of record as of March 14, 2025. This distribution is expected to be paid from taxable net investment income, and its final tax characteristics will be reported to stockholders after the end of the calendar year. This announcement reflects the company’s ongoing commitment to providing returns to its investors and maintaining its position in the middle-market investment sector.

PennantPark Announces February 2025 Monthly Distribution

On February 5, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for February 2025, payable on March 3, 2025, to stockholders of record as of February 18, 2025. This distribution is expected to be paid from taxable net investment income, and its final tax characteristics will be reported after the end of the calendar year. This announcement reflects the company’s ongoing financial strategies and can impact stakeholders by providing consistent returns, showcasing its commitment to maintaining reliable investment income distribution.