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Pennantpark Investment
(NYSE:PNNT)
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Rating:60Neutral
Price Target:
$4.00
▲(4.99% Upside)
Action:Reiterated
Date:08/11/26
PNNT scores highest on recent cash-flow strength and a constructive earnings-call outlook (base dividend covered by core NII, strong JV performance and lower JV funding costs, and low non-accruals). The overall score is held back by historically volatile profitability/cash flows, mixed longer-term technical trends with near-overbought readings, and a less-attractive earnings-based valuation (high P/E) despite the very high dividend yield.
Positive Factors
Strong cash generation and coverage
Sustained TTM operating and free cash flow of roughly $238M with FCF up ~48% and cash flow covering debt ~3.2x provides durable internal funding. This supports dividend coverage, debt service, and selective reinvestment without relying on volatile capital markets over the next several months.
Negative Factors
Spillover and supplemental dividend pressure
Ongoing distribution of undistributed taxable income (spillover) via supplemental dividends depletes NAV and has caused a recent q/q NAV decline. Persisting supplemental payouts can constrain capital available for reinvestment and make reported yields dependent on payout mechanics rather than solely on recurring NII.
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Positive Factors
Negative Factors
Strong cash generation and coverage
Sustained TTM operating and free cash flow of roughly $238M with FCF up ~48% and cash flow covering debt ~3.2x provides durable internal funding. This supports dividend coverage, debt service, and selective reinvestment without relying on volatile capital markets over the next several months.
Read all positive factors
Pennantpark Investment (PNNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$248.78M
Dividend Yield25.53%
Average Volume (3M)760.50K
Price to Earnings (P/E)23.8
Beta (1Y)0.59
Revenue Growth138.32%
EPS Growth-27.91%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.16
Shares Outstanding65,296,100
10 Day Avg. Volume642,797
30 Day Avg. Volume760,505
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$4.00Price Target Upside4.99% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.54
Revenue Forecast (FY)$101.36M
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
PNNT makes money primarily from investment income generated by its portfolio of loans and other credit investments, plus gains and fees associated with those investments.
1) Interest income on debt investments (primary revenue stream)
- The large...
Pennantpark Investment Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call highlighted several constructive items — coverage of the base dividend by core NII, strong JV economics (15.1% cash yield) and meaningful reductions in JV cost of capital, attractive realizations (14x MOIC on an equity sale), a well-diversified portfolio with low nonaccruals, and a strong long-term track record. Offsetting items include a 2.5% decline in NAV driven by supplemental dividend distributions, a remaining spillover balance ($0.56 per share) that management plans to continue distributing, a $4.4 million net realized/unrealized loss in the quarter, originations being outpaced by repayments with only gradual expected portfolio growth, and sizable equity positions that may take 1–2 years to rotate. Overall, the positives — recurring income cover, JV strength and demonstrable realizations — materially outweigh the headwinds tied largely to dividend distribution mechanics and a few illiquid equity positions.Positive Updates
Net Investment Income and Dividend Coverage
Core NII of $0.14 per share for the quarter, which exceeded the base dividend of $0.04 per month ($0.12 per quarter), demonstrating coverage of the base dividend by recurring income.
Negative Updates
NAV Decline Driven by Supplemental Dividends
Net asset value per share fell to $6.56, down 2.5% from the prior quarter; management states the decline was primarily attributable to supplemental dividend payments used to distribute undistributed taxable income rather than underlying investment performance.
Read all updates
Q3-2026 Updates
Positive
Negative
Net Investment Income and Dividend Coverage
Core NII of $0.14 per share for the quarter, which exceeded the base dividend of $0.04 per month ($0.12 per quarter), demonstrating coverage of the base dividend by recurring income.
Read all positive updates
Company Guidance
Management's guidance emphasized maintaining a target leverage of about 1.3x debt‑to‑equity while continuing supplemental dividends through year‑end to reduce a $0.56/share spillover to roughly $0.40/share, and highlighted key portfolio and JV metrics: PNNT's portfolio totaled $1.2B with NAV $6.56 (down 2.5% q/q) and core NII of $0.14/share (versus a base dividend of $0.04/month or $0.12/quarter); median portfolio metrics were debt/EBITDA 4.7x, interest coverage 2.1x, and LTV 45% with four non‑accruals (2.5% of cost, 0.8% of market); originations in the quarter were $77M at an 8.9% weighted average yield (new platform investments median D/EBITDA 2.3x, interest coverage 4.2x, LTV 30%); the PSLF JV (portfolio $1.3B, capacity ≈ $1.5B) averaged a 15.1% cash yield over 12 months, and JV refinancings lowered the revolver to SOFR+2.1% and cut securitization spread by 97 bps to 1.69%—actions that management estimates will boost PNNT by about $0.005/share per quarter (≈ $0.02/year)—while core middle‑market first‑lien spreads were cited around L+500–550bps with ~4.5x EBITDA leverage.Pennantpark Investment Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 99.56M | 83.08M | 103.70M | 19.24M | 23.80M | 193.82M |
| Gross Profit | 63.25M | 41.76M | 58.51M | -20.17M | -4.96M | 171.31M |
| EBITDA | 83.90M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M |
| Net Income | 10.13M | 32.73M | 48.85M | -33.81M | -24.74M | 166.62M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.35B | 1.39B | 1.16B | 1.32B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 39.25M | 51.78M | 49.86M | 38.77M | 54.77M | 20.36M |
| Total Debt | 73.61M | 738.88M | 772.01M | 516.84M | 704.51M | 607.34M |
| Total Liabilities | 834.94M | 885.60M | 895.18M | 654.79M | 735.05M | 634.95M |
| Stockholders Equity | 428.03M | 463.95M | 493.91M | 502.19M | 585.57M | 660.14M |
Cash Flow | ||||||
| Free Cash Flow | 237.68M | 66.12M | -172.40M | 222.94M | -17.29M | 7.91M |
| Operating Cash Flow | 237.68M | 66.12M | -172.40M | 222.94M | -17.29M | 7.91M |
| Investing Cash Flow | -37.88M | 38.66M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -144.30M | -102.91M | 183.43M | -239.16M | 52.04M | -13.42M |
Pennantpark Investment Technical Analysis
Positive
3.81
Price Trends
3.41
Positive
3.68
Positive
4.26
Negative
Market Momentum
0.11
Negative
62.01
Neutral
63.14
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 3.81 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.41, and below the 200-day MA of 4.26, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $448.25M | 9.22 | 10.19% | 9.39% | -38.83% | -36.61% | |
60 Neutral | $248.78M | 23.81 | <0.01% | 29.18% | 138.32% | -27.91% | |
60 Neutral | $246.64M | 8.41 | 8.05% | 21.11% | 0.37% | -28.29% | |
60 Neutral | $350.71M | -3.25 | -17.68% | 27.85% | -141.00% | -809.18% | |
59 Neutral | $359.61M | 5.20 | 16.34% | 5.27% | 8.04% | 10.59% | |
52 Neutral | $369.51M | 27.19 | 1.84% | 23.83% | 3.63% | ― |
* Financial Sector Average
PNNT
Pennantpark Investment
3.74
-2.16
-36.64%
GLAD
Gladstone Capital
19.84
-4.02
-16.86%
NEWT
Newtek Business
12.32
0.80
6.97%
SCM
Stellus Capital
8.66
-4.10
-32.14%
TCPC
BlackRock TCP Capital
4.13
-1.81
-30.47%
CION
CION Investment Corp
7.41
-1.56
-17.35%
Pennantpark Investment Corporate Events
DividendsFinancial Disclosures
PennantPark Investment Announces August 2026 Monthly Distribution
Positive
Aug 4, 2026
On August 4, 2026, PennantPark Investment Corporation declared a monthly distribution for August 2026 of $0.08 per share, split between a $0.04 base dividend and a $0.04 supplemental dividend. The payout is scheduled for September 1, 2026 to stock...
Financial Disclosures
PennantPark Investment Schedules Upcoming Q3 2026 Results Release
Neutral
Jul 6, 2026
PennantPark Investment Corporation, a business development company investing in U.S. middle-market private firms through secured and subordinated debt as well as equity, operates under the management of PennantPark Investment Advisers. The adviser...
Dividends
PennantPark Investment Declares July 2026 Monthly Distribution
Positive
Jul 2, 2026
PennantPark Investment Corporation, a U.S. middle‑market focused business development company providing secured and subordinated debt and equity investments, is managed by PennantPark Investment Advisers, which runs a $10 billion middle̴...
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...
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.