Pennantpark Investment (PNNT) AI Stock Analysis

• Market Cap: $394.39M
• Dividend Yield: 16.61%
• Average Volume (3M): 601.66K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.45
• Revenue Growth: -3.09%
• EPS Growth: 200.66%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.15
• Shares Outstanding: 65,296,100
• 10 Day Avg. Volume: 564,455
• 30 Day Avg. Volume: 601,661
• PEG Ratio: -0.40
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 6.26
• P/FCF Ratio: 4.18
• Enterprise Value/Market Cap: 2.85
• Enterprise Value/Revenue: 11.17
• Enterprise Value/Gross Profit: 27.71
• Enterprise Value/Ebitda: 14.62
• 1Y Price Target: $5.88
• Price Target Upside: -2.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $112.75M

• Rating: 57 Neutral
• Price Target: $6.50 ▲(7.62% Upside)

The score is held back primarily by weak financial trends (steep revenue and free-cash-flow declines, softer ROE). Valuation supports the stock via a high dividend yield and reasonable P/E, while technicals are broadly neutral. Earnings-call takeaways are mixed (good credit/yields and spillover income, but NAV pressure and elevated leverage), with recent corporate actions modestly supportive of liquidity and distributions.

Positive Factors

Strong Portfolio Performance

The strong credit quality of the portfolio indicates effective risk management and enhances the company's ability to generate stable returns over time.

Liquidity Enhancement

The sale of a significant equity stake enhances liquidity, supporting strategic flexibility and strengthening the company's financial position.

High Yield on Investments

High yields on investments indicate strong income generation potential, supporting future profitability and dividend sustainability.

Negative Factors

Decline in Revenue Growth

A sharp decline in revenue growth suggests potential challenges in maintaining market share and could impact long-term profitability.

High Leverage Ratio

A high leverage ratio increases financial risk and may limit the company's ability to invest in growth opportunities or weather economic downturns.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to fund operations and growth initiatives, potentially affecting long-term financial health.

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 investments. The fund typically invests in buildings and real estate, hotels, gaming and leisure, technology, telecommunications, transportation, information technology services, electronics, healthcare & pharmaceuticals, education and childcare, financial services, printing and publishing, consumer products, business services, energy & Related Services and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, building materials, capital equipment, chemicals, plastics, & rubber, food & beverage, wholesale, manufacturing and basic industries and retail. It invests in equity securities and debt transactions through preferred stock, common stock, warrants, options, senior secured debt, subordinated debt, subordinated loans, first lien debt, mezzanine loans, and distressed debt securities and private equity co-investments. It seeks to invest in companies based in the United States. 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. The fund may also make non-control equity and debt investments.

How the Company Makes Money

PennantPark generates revenue primarily through interest income from the loans and debt securities it provides to portfolio companies. The company earns interest on its investments, which typically have fixed or floating rates, and also collects fees for arranging and managing these investments. In addition to interest income, PennantPark can generate capital gains from equity investments when portfolio companies are sold or go public. The company's revenue model is bolstered by its relationships with private equity firms and other financial institutions, which can lead to deal flow and co-investment opportunities. The management fees from its investment activities also contribute to its earnings, providing a consistent revenue stream.

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 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	100.74M	69.94M	69.94M	143.82M	145.37M	104.97M
Gross Profit	40.61M	42.15M	42.15M	58.51M	145.37M	-4.96M
EBITDA	76.95M	76.95M	76.95M	51.95M	0.00	-16.86M
Net Income	32.73M	32.73M	32.73M	48.85M	-33.81M	-24.74M
Balance Sheet
Total Assets	1.35B	1.35B	1.35B	1.39B	1.16B	1.32B
Cash, Cash Equivalents and Short-Term Investments	51.78M	51.78M	51.78M	49.86M	38.77M	54.77M
Total Debt	738.88M	149.47M	149.47M	772.01M	516.84M	704.51M
Total Liabilities	885.60M	885.60M	885.60M	895.18M	654.79M	735.05M
Stockholders Equity	463.95M	463.95M	463.95M	493.91M	502.19M	585.57M
Cash Flow
Free Cash Flow	229.83M	104.78M	104.78M	-172.40M	222.94M	-17.29M
Operating Cash Flow	229.83M	104.78M	104.78M	-172.40M	222.94M	-17.29M
Investing Cash Flow	-80.68M	38.66M	38.66M	0.00	0.00	0.00
Financing Cash Flow	-102.91M	-102.91M	-102.91M	183.43M	-239.16M	52.04M

Pennantpark Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 6.04 is above the 20-day moving average (MA) of 5.91, above the 50-day MA of 5.94, and below the 200-day MA of 6.21, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.20 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
NEWT	71 Outperform	$422.91M	6.59	17.74%	6.55%	6.38%	25.69%
GLAD	70 Outperform	$477.17M	8.37	11.86%	9.31%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CION	63 Neutral	$488.29M	18.68	3.22%	15.77%	-11.01%	-65.56%
SCM	60 Neutral	$383.26M	12.16	8.20%	12.83%	90.34%	-44.25%
PNNT	57 Neutral	$394.39M	12.05	6.83%	16.61%	-3.09%	200.66%
TCPC	50 Neutral	$491.23M	-54.26	-1.15%	21.13%	-91.81%	78.46%

Pennantpark Investment Corporate Events

PennantPark Schedules First-Quarter 2026 Earnings Release, Call

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, to discuss the quarter. The scheduled earnings release and accompanying call signal the next key disclosure event for shareholders and debt investors, offering a detailed look at portfolio performance in the U.S. middle-market credit space and potentially influencing market perceptions of PennantPark’s positioning within the business development company sector.

The most recent analyst rating on (PNNT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pennantpark Investment stock, see the PNNT Stock Forecast page.

PennantPark Investment Declares January 2026 Monthly Distribution

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 expected to be funded from taxable net investment income, with final tax characteristics to be detailed to shareholders on Form 1099 and in the company’s subsequent regulatory filings, underscoring the firm’s continued income-generation profile for investors in its middle-market credit portfolio.

The most recent analyst rating on (PNNT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pennantpark Investment stock, see the PNNT Stock Forecast page.

PennantPark Investment Sells Equity Stake for $67.5 Million

On December 11, 2025, PennantPark Investment Corporation amended its Senior Revolving Credit Agreement, extending the revolving period to 2029 and the maturity date to December 11, 2030, while reducing the spread and increasing total commitments by $35 million to $535 million. Additionally, on December 15, 2025, the company announced the sale of its equity investment in JF Intermediate, LLC for $67.5 million, realizing a gain of $63.1 million. This transaction, along with the upsized credit facility, enhances liquidity and supports the company’s equity rotation strategy, benefiting shareholders and strengthening its market position.

The most recent analyst rating on (PNNT) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Pennantpark Investment stock, see the PNNT Stock Forecast page.

PennantPark Announces December 2025 Distribution

On December 2, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for December 2025, payable on January 2, 2026, to stockholders of record as of December 15, 2025. This distribution is expected to be paid from taxable net investment income, with the final tax characteristics to be reported after the calendar year ends. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder value.

The most recent analyst rating on (PNNT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Pennantpark Investment stock, see the PNNT Stock Forecast page.

PennantPark Announces November 2025 Distribution

On November 4, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for November 2025, payable on December 1, 2025, to stockholders of record as of November 17, 2025. This distribution is expected to be paid from taxable net investment income, and the final tax characteristics will be reported after the calendar year. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and maintaining its position in the middle-market investment sector.

The most recent analyst rating on (PNNT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pennantpark Investment stock, see the PNNT Stock Forecast page.