PennantPark Investment Corporation
- Open
- 3.71
- Day high
- 3.83
- Day low
- 3.69
- Prev close
- 3.70
- Volume
- 954K
- Mkt cap
- $245M
- P/E (TTM)
- 23.7
- EPS (TTM)
- $0.16
- P/B
- 0.6
- P/S
- 2.5
- Yield
- 25.60%
- Per share
- $0.96
PennantPark Investment Corporation (PNNT) is a Financial Services company listed on NYSE. The stock is down 47% over the past year. Drillr has 1 published research article covering PNNT.
PennantPark Investment Corporation (PNNT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PNNT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.14 | $0.14 | +0.4% | $25M | -1.4% |
| May 8, 2026 | $0.14 | $0.14 | +0.0% | $25M | -6.9% |
| Nov 24, 2025 | $0.17 | $0.15 | -13.4% | $28M | -4.5% |
| Nov 25, 2024 | $0.22 | $0.22 | -0.8% | $37M | +1.0% |
| May 8, 2024 | $0.24 | $0.22 | -8.4% | $36M | -2.0% |
| Feb 7, 2024 | $0.23 | $0.24 | +5.1% | $34M | +5.0% |
| Nov 15, 2023 | $0.22 | $0.24 | +9.2% | $34M | +2.4% |
| Feb 8, 2023 | $0.19 | $0.16 | -16.2% | $30M | -1.0% |
| Nov 16, 2022 | $0.17 | $0.14 | -17.6% | $29M | +6.6% |
| Aug 3, 2022 | $0.17 | $0.16 | -3.6% | $23M | -0.4% |
| May 4, 2022 | $0.17 | $0.18 | +4.5% | $24M | -6.6% |
| Feb 9, 2022 | $0.14 | $0.19 | +35.7% | $28M | +25.9% |
PNNT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 12, 2026 | Allorto Richard T JRofficer: CFO and Treasurer | Buy | 15,000 | $4.88 |
| Dec 9, 2025 | Flug Jeffreydirector | Sell | 121,533 | $5.92 |
| Dec 9, 2025 | Flug Jeffreydirector | Sell | 20,000 | $5.85 |
| Dec 5, 2025 | Flug Jeffreydirector | Sell | 23,303 | $5.78 |
| Dec 5, 2025 | Flug Jeffreydirector | Sell | 10,000 | $5.75 |
| Dec 3, 2025 | Briones Jose Adirector | Buy | 4,235 | $5.91 |
| Dec 2, 2025 | Flug Jeffreydirector | Sell | 21,100 | $6.04 |
| Dec 2, 2025 | Flug Jeffreydirector | Sell | 15,000 | $6.06 |
| Dec 1, 2025 | Flug Jeffreydirector | Sell | 25,000 | $6.03 |
| May 23, 2025 | Briones Jose Adirector | Buy | 1,515 | $6.59 |
| May 16, 2025 | Briones Jose Adirector | Buy | 3,640 | $6.88 |
| Dec 3, 2024 | Briones Jose Adirector | Buy | 3,675 | $6.79 |
| Mar 14, 2024 | Allorto Richard T JRofficer: CFO and Treasurer | Buy | 5,000 | $6.80 |
| Feb 29, 2024 | Briones Jose Adirector | Buy | 4,956 | $6.86 |
| Feb 29, 2024 | Briones Jose Adirector | Buy | 1,166 | $6.85 |
Source: PNNT SEC Form 4 filings, latest Mar 12, 2026. For informational purposes only — not investment advice.
See the full PNNT insider & 13F page →PennantPark Investment Corporation company profile
Overview
PennantPark Investment Corporation (NASDAQ:PNNT) is a business development company founded in 2007 that specializes in providing debt and equity capital to middle-market companies. Established as a publicly traded investment fund, PNNT operates under the Investment Company Act of 1940 and focuses on direct lending and mezzanine investments in companies with annual earnings before interest, taxes, depreciation, and amortization (EBITDA) between $10 million and $50 million. The company has built a diversified portfolio of investments across various industries and maintains a joint venture partnership to expand its lending capacity.
Business
PennantPark Investment Corporation operates as a business development company (BDC) in the alternative asset management industry, specifically focusing on middle-market lending. A BDC is a type of investment company that provides capital to small and mid-sized businesses that may have difficulty accessing traditional bank financing or public capital markets. The company's core business involves making direct investments in middle-market companies, which are typically privately held businesses with annual EBITDA between $10 million and $50 million. These companies are considered too large for small business lending but too small for traditional investment banking services, creating a market niche that BDCs like PNNT serve. PNNT's investment portfolio consists of several components: 1. First lien secured debt (approximately 50-55% of portfolio) - senior loans that have first priority claim on company assets in case of default, 2. Second lien secured debt (4-8% of portfolio) - subordinated loans with secondary claim on assets, 3. Mezzanine and subordinated debt (10-15% of portfolio) - hybrid financing that combines debt and equity features, typically offering higher returns but with greater risk, 4. Equity investments (18-26% of portfolio) - direct ownership stakes in portfolio companies, including preferred and common stock. The company also operates a joint venture called PennantPark Senior Loan Fund (PSLF), which focuses exclusively on senior secured lending and has grown to approximately $1 billion in assets. This joint venture allows PNNT to expand its lending capacity beyond its own balance sheet constraints while generating management fees and carried interest. PNNT concentrates its investments in five key sectors: business services, consumer products and services, government services and defense, healthcare, and software technology. The company typically invests between $10 million and $100 million per transaction across the capital structure of its portfolio companies.
Revenue model
PennantPark generates revenue through multiple streams typical of business development companies. The primary revenue source comes from interest income on its debt investments, which currently yield approximately 12-13% on average. Since 94-96% of the debt portfolio consists of floating-rate loans, the company benefits when interest rates rise, as loan yields adjust upward with benchmark rates. The company also earns dividend income from its equity investments and preferred stock holdings. These equity positions, while representing 18-26% of the portfolio, can generate substantial returns through appreciation and distributions, with the company reporting a 26-28% internal rate of return on equity co-investments since inception. From its joint venture PSLF, PNNT receives management fees and carried interest (performance fees). The joint venture has generated returns of approximately 18-19% on invested capital, providing PNNT with additional fee income beyond its direct investment returns. PNNT also benefits from its equity stake in the joint venture itself. The company's profitability is influenced by several key factors. Interest rate environment significantly impacts margins, as rising rates increase income from floating-rate loans while potentially raising funding costs. Credit quality of portfolio companies directly affects returns, with the company maintaining relatively low non-accrual rates of 4-5% of portfolio cost. Competition in middle-market lending can compress loan spreads, though PNNT has maintained spreads of approximately 5-5.5% over risk-free rates. Portfolio company performance affects both debt service capabilities and equity valuations. Economic downturns can increase default rates and reduce equity values, while strong economic conditions support portfolio company growth and potential equity exits. The company's focus on lower-leverage lending (typically 4-5x debt-to-EBITDA for new investments) helps mitigate credit risk during economic stress periods.
Competitive moat
PennantPark Investment Corporation operates in a moderately competitive middle-market lending space with limited but meaningful competitive advantages. The company's primary moat stems from its established relationships and origination capabilities in the middle market, where deal sourcing often relies on long-term relationships with investment banks, management teams, and private equity sponsors. Having operated since 2007, PNNT has built a network that provides access to proprietary deal flow. The company's joint venture structure provides some competitive advantage by allowing it to offer larger financing packages than its balance sheet alone would permit, while generating additional fee income. The PSLF joint venture, with approximately $1 billion in assets, gives PNNT scale advantages in competing for larger transactions and provides diversification of funding sources through securitization financing. PNNT's sector expertise in five key industries (business services, consumer, government services/defense, healthcare, and software/technology) creates some differentiation, as specialized knowledge can lead to better underwriting and portfolio management. The company's conservative underwriting approach, emphasizing covenant protections and lower leverage ratios, may appeal to borrowers seeking long-term partnership rather than just capital. However, the middle-market lending space faces significant competitive pressures. Large banks have increasingly moved into middle-market lending as regulatory capital requirements have stabilized, bringing lower cost of capital and broader service offerings. Private credit funds and other BDCs compete directly for the same transactions, often with larger balance sheets and more aggressive pricing. Direct lending platforms and fintech companies are also emerging as competitors, potentially offering more efficient origination and servicing. The company's moat is relatively narrow, as lending is largely a commodity business where pricing and terms are the primary differentiators. While relationships matter, they can be replicated over time by well-capitalized competitors. The regulatory structure governing BDCs provides some protection by limiting leverage and requiring income distribution, but also constrains growth and flexibility compared to private competitors.
Risks & safety
PennantPark Investment Corporation presents a moderate margin of safety profile with mixed financial health indicators. • Liquidity position: The company maintains reasonable liquidity with $32-56 million in cash and short-term investments, though current ratios have varied significantly (0.25x to 0.87x) due to timing of investment activities and credit facility drawings. • Debt management: Debt-to-equity ratio of approximately 1.56x is within BDC industry norms but represents meaningful leverage. The company has access to a $500 million credit facility and utilizes securitization financing through its joint venture, providing funding flexibility. • Portfolio quality: Non-accrual investments represent only 4-5% of portfolio cost, indicating relatively strong credit quality. The weighted average debt-to-EBITDA ratio of portfolio companies is approximately 4.5-5.0x, which is conservative for middle-market lending. • Valuation metrics: Trading at approximately 0.92-0.94x book value suggests the market recognizes some discount to net asset value. Price-to-earnings ratios have varied widely (6-33x) due to earnings volatility from mark-to-market adjustments on equity investments. • Dividend coverage: The company maintains substantial undistributed spillover income of approximately $65 million ($0.99 per share), providing cushion for dividend payments during periods of lower earnings. • Interest rate sensitivity: With 94-96% of debt portfolio in floating-rate instruments, the company benefits from rising rate environments but faces margin pressure if rates decline significantly.
Recent development
Over the past few years, PennantPark has executed several strategic initiatives to strengthen its competitive position and optimize its capital structure. The company has significantly expanded its joint venture PSLF, growing it from approximately $600 million to over $1 billion in assets, with plans to continue scaling this platform. This expansion included increasing the senior secured credit facility from $325 million to $400 million and accepting additional capital commitments of $127 million. PNNT has undertaken a strategic portfolio rebalancing, working to reduce its equity exposure from the current 20-26% level to a target of approximately 10% of the portfolio. This shift reflects management's focus on more predictable income generation from debt investments while maintaining selective equity co-investment opportunities. The company successfully executed a major equity exit with Pivot Physical Therapy, generating $232 million in cash proceeds. The company has refined its sector focus to concentrate on five key industries: business services, consumer products, government services and defense, healthcare, and software technology. This specialization strategy aims to develop deeper expertise and relationships within these sectors while reducing exposure to more cyclical or challenged industries. PNNT has also enhanced its dividend policy, converting from quarterly to monthly dividend payments and increasing the dividend rate to $0.08 per share monthly. This change was supported by improved earnings visibility and substantial spillover income accumulation. The company has maintained an active share repurchase program, buying back shares when trading below book value. Recent quarters have shown management's focus on conservative underwriting standards, with new investments typically structured at 3.6-4.0x debt-to-EBITDA ratios and emphasizing meaningful covenant protections. This approach reflects lessons learned from previous credit cycles and positions the portfolio defensively for potential economic uncertainty.
PNNT company profile · for informational purposes only — not investment advice.
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