Pennantpark Floating Rate Capital (NASDAQ:PFLT) Lowered to Sell at Zacks Investment Research

Pennantpark Floating Rate Capital (NASDAQ:PFLT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “PennantPark Floating Rate Capital Ltd. is a business development company. It is a closed-end, externally managed and non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing primarily in floating rate loans and other investments made to the United States middle-market companies. The firm provides first lien secured debt and other opportunistic financings (mezzanine, private high yield debt, preferred and common stock) to middle market sponsors and companies. Its investments may include equity features, such as direct investments in the equity securities of borrowers or warrants or options to buy a minority interest in a portfolio company. It has investments in various sectors, including aerospace and defense; consumer services; healthcare and pharmaceuticals, and others. The firm has a value-oriented, bottoms-up investment philosophy. Its investment activities are managed by the investment advisor, PennantPark Investment Advisers LLC. “

Several other equities research analysts have also commented on PFLT. TheStreet lowered shares of Pennantpark Floating Rate Capital from a “b-” rating to a “c+” rating in a research report on Wednesday, May 22nd. JMP Securities reduced their price target on shares of Pennantpark Floating Rate Capital from $13.50 to $13.00 and set a “market outperform” rating for the company in a research report on Tuesday. ValuEngine lowered shares of Pennantpark Floating Rate Capital from a “hold” rating to a “sell” rating in a research report on Thursday, May 9th. Keefe, Bruyette & Woods lowered shares of Pennantpark Floating Rate Capital from an “outperform” rating to a “market perform” rating and reduced their price target for the company from $14.00 to $13.00 in a research report on Wednesday, May 8th. Finally, LADENBURG THALM/SH SH lowered shares of Pennantpark Floating Rate Capital from a “buy” rating to a “neutral” rating in a research report on Monday, May 13th. Two analysts have rated the stock with a sell rating, three have given a hold rating and two have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $13.50.

NASDAQ PFLT opened at $11.60 on Tuesday. Pennantpark Floating Rate Capital has a 52 week low of $11.05 and a 52 week high of $13.77. The stock has a market cap of $448.18 million, a price-to-earnings ratio of 10.94 and a beta of 0.73. The company’s 50-day simple moving average is $11.61.

Pennantpark Floating Rate Capital (NASDAQ:PFLT) last released its quarterly earnings results on Wednesday, August 7th. The asset manager reported $0.29 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.30 by ($0.01). Pennantpark Floating Rate Capital had a net margin of 16.65% and a return on equity of 8.83%. The business had revenue of $22.88 million for the quarter, compared to analysts’ expectations of $22.90 million. On average, sell-side analysts anticipate that Pennantpark Floating Rate Capital will post 1.19 earnings per share for the current fiscal year.

In other news, insider Arthur H. Penn bought 8,000 shares of Pennantpark Floating Rate Capital stock in a transaction that occurred on Monday, August 12th. The stock was bought at an average cost of $11.57 per share, with a total value of $92,560.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Aviv Efrat bought 8,200 shares of Pennantpark Floating Rate Capital stock in a transaction that occurred on Friday, May 17th. The stock was purchased at an average cost of $12.05 per share, with a total value of $98,810.00. Following the completion of the acquisition, the chief financial officer now directly owns 45,150 shares in the company, valued at approximately $544,057.50. The disclosure for this purchase can be found here. Insiders purchased a total of 25,200 shares of company stock valued at $296,310 over the last three months. 1.00% of the stock is currently owned by insiders.

A number of institutional investors have recently added to or reduced their stakes in the stock. NEXT Financial Group Inc increased its holdings in Pennantpark Floating Rate Capital by 13.3% in the 2nd quarter. NEXT Financial Group Inc now owns 8,681 shares of the asset manager’s stock worth $101,000 after acquiring an additional 1,018 shares in the last quarter. B. Riley Wealth Management Inc. grew its holdings in Pennantpark Floating Rate Capital by 0.6% during the 1st quarter. B. Riley Wealth Management Inc. now owns 192,844 shares of the asset manager’s stock valued at $2,470,000 after buying an additional 1,178 shares in the last quarter. Pacific Ridge Capital Partners LLC grew its holdings in Pennantpark Floating Rate Capital by 0.4% during the 1st quarter. Pacific Ridge Capital Partners LLC now owns 381,576 shares of the asset manager’s stock valued at $4,888,000 after buying an additional 1,444 shares in the last quarter. Relative Value Partners Group LLC grew its holdings in Pennantpark Floating Rate Capital by 0.7% during the 1st quarter. Relative Value Partners Group LLC now owns 289,176 shares of the asset manager’s stock valued at $3,732,000 after buying an additional 2,005 shares in the last quarter. Finally, Confluence Investment Management LLC grew its holdings in Pennantpark Floating Rate Capital by 1.9% during the 1st quarter. Confluence Investment Management LLC now owns 140,761 shares of the asset manager’s stock valued at $1,803,000 after buying an additional 2,606 shares in the last quarter. 36.20% of the stock is owned by institutional investors.

Pennantpark Floating Rate Capital Company Profile

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. It primarily invests in the United States and to a limited extent non-U.S.

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