The stock price of PennantPark Investment Corporation (NYSE: PNNT) has plunged by -1.64 when compared to previous closing price of 6.41, but the company has seen a -10.19% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2025-04-09 that Private credit and BDC sectors have faced steep losses, with the BDC index down nearly 15% YTD, worse than the S&P 500. Economic uncertainties, stagnant M&A/LBO markets, potential Fed rate cuts negatively impact BDCs, especially those with weak margin of safety. In the article I discuss two BDCs, which are, in my view, about to cut their dividends this year.
Is It Worth Investing in PennantPark Investment Corporation (NYSE: PNNT) Right Now?
The price-to-earnings ratio for PennantPark Investment Corporation (NYSE: PNNT) is above average at 7.51x. The 36-month beta value for PNNT is also noteworthy at 1.07. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 7 rating it as “hold,” and 0 rating it as “sell.”
The public float for PNNT is 63.09M, and at present, short sellers hold a 2.49% of that float. The average trading volume of PNNT on April 10, 2025 was 536.63K shares.
PNNT’s Market Performance
The stock of PennantPark Investment Corporation (PNNT) has seen a -10.19% decrease in the past week, with a -10.19% drop in the past month, and a -12.31% fall in the past quarter. The volatility ratio for the week is 8.51%, and the volatility levels for the past 30 days are at 2.97% for PNNT. The simple moving average for the past 20 days is -8.19% for PNNT’s stock, with a -10.47% simple moving average for the past 200 days.
Analysts’ Opinion of PNNT
Compass Point, on the other hand, stated in their research note that they expect to see PNNT reach a price target of $6. The rating they have provided for PNNT stocks is “Neutral” according to the report published on September 09th, 2024.
Compass Point gave a rating of “Sell” to PNNT, setting the target price at $6.50 in the report published on July 15th of the previous year.
PNNT Trading at -10.27% from the 50-Day Moving Average
After a stumble in the market that brought PNNT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -21.58% of loss for the given period.
Volatility was left at 2.97%, however, over the last 30 days, the volatility rate increased by 8.51%, as shares sank -9.32% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.45% lower at present.
During the last 5 trading sessions, PNNT fell by -10.61%, which changed the moving average for the period of 200-days by -16.67% in comparison to the 20-day moving average, which settled at $6.87. In addition, PennantPark Investment Corporation saw -10.95% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PNNT starting from Briones Jose A, who purchase 3,675 shares at the price of $6.79 back on Nov 27 ’24. After this action, Briones Jose A now owns 265,332 shares of PennantPark Investment Corporation, valued at $24,972 using the latest closing price.
Stock Fundamentals for PNNT
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.85 for the gross margin
The net margin for PennantPark Investment Corporation stands at 0.38. The total capital return value is set at 0.01.
Based on PennantPark Investment Corporation (PNNT), the company’s capital structure generated 0.63 points at debt to capital in total, while cash flow to debt ratio is standing at 0.1. The debt to equity ratio resting at 1.73. The interest coverage ratio of the stock is 0.21.
When we switch over and look at the enterprise to sales, we see a ratio of 5.47. The receivables turnover for the company is 19.66for trailing twelve months and the total asset turnover is 0.07.
Conclusion
In summary, PennantPark Investment Corporation (PNNT) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
