Summary
PennantPark posted another strong quarter, beating estimates across the board.
It continued to utilize its share buyback program this quarter, and will continue to do so in the next few quarters as well.
The company has a long-standing track record since its inception of outperforming its peers, including during times of economic recession.
Management is focusing on shifting its portfolio to more stable income-producing investments and is preparing for an eventual recession, although it can never be totally immune to risk.
Taken as a whole, PennantPark continues to be a solid pick in the middle market company space.
With another solid quarter in the books, PennantPark Investment (PNNT) continues to outperform peers, while generating steady investment income. At 0.79x 3Q18 NAV, the stock trades below the long-term industry average. We think there's value at these levels.
About PennantPark
PennantPark Investment Corporation is a Business Development Company focused on investing in middle market companies. It invests in a wide range of companies in the US, primarily in debt securities but also some in equity securities. The fund is closed-end and trades publicly on the Nasdaq exchange under the ticker symbol PNNT.
