PennantPark Investment Corporation (NYSE:PNNT) is a business development company that provides capital to middle-market companies in the United States. On August 13, 2025, Citigroup downgraded PNNT to an "Underperform" rating, with the stock priced at $7.26. This downgrade came shortly after the company's Q3 2025 earnings report, which revealed some financial challenges.
During the Q3 2025 Earnings Conference Call on August 12, 2025, key figures like CEO Arthur Howard Penn and CFO Richard Thomas Allorto discussed the company's performance. Despite the presence of analysts from major financial institutions, the earnings report showed a revenue of $29.56 million, a 20.1% decline from the previous year. This revenue was slightly below the Zacks Consensus Estimate, missing it by 0.3%.
The earnings per share (EPS) for the quarter was $0.18, meeting the Zacks Consensus Estimate but down from $0.24 a year ago. This consistency in meeting EPS estimates, despite a decline, suggests that the company is managing expectations but struggling with growth. Over the past four quarters, PNNT has not exceeded consensus EPS estimates and has only surpassed revenue estimates once.
Currently, PNNT's stock is priced at $7.32, reflecting a minor decrease of 0.27% from the previous day. The stock has seen fluctuations, with a daily range between $7.13 and $7.53, the latter being its highest price in the past year. The lowest price in the past year was $5.72, indicating some volatility in its market performance.
With a market capitalization of approximately $478 million, PNNT remains a significant player in its sector. The trading volume today is 1,157,379 shares on the NYSE, showing active investor interest. However, the recent downgrade by Citigroup and the financial results highlight the challenges PNNT faces in maintaining its market position.
