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PennantPark Floating Rate Capital shares have drifted lower in recent months, with the stock trading roughly in the low-teens range and hovering near multi-month lows. The weakness comes despite still solid headline income numbers. Recent results showed net investment income under mild pressure and net asset value slipping slightly, which often weighs heavily on sentiment in this sector. From a value perspective, the company still generates attractive income and maintains respectable margins for a lending platform. Dividends have been generous and mostly stable in recent years, but coverage has tightened, raising some investor concern. That is one key reason the stock looks cheap today. The bullish case rests on stabilizing credit quality and sustained demand for floating-rate lending. The risk case centers on potential credit losses and dividend pressure if earnings soften further. Recovery is possible but likely dependent on improved coverage metrics. This review is for informational and educational purposes only, not a financial advice.
