PennantPark Investment Corp. (NASDAQ: PNNT) is a business development company that principally invests in U.S. middle-market private companies in the form of senior secured loans, mezzanine debt and equity investments. From time to time, the company also may invest in public companies with securities that are thinly traded. The company has seen some solid insider buying this year, which is a positive for shareholders.
As of March 31, 2019, the PennantPark portfolio totaled $1.24 billion and consisted of $686.6 million of first lien secured debt, $350.0 million of second lien secured debt, $49.9 million of subordinated debt and $158.2 million of preferred and common equity. Its debt portfolio consisted of 89% variable-rate investments and 11% fixed-rate investments.
Last year in May, the company announced a share repurchase program that allows it to repurchase up to $30 million of its outstanding common stock in the open market at prices below net asset value as reported in its most recently published consolidated financial statements. The shares may be purchased from time to time at prevailing market prices, through open market transactions, including block transactions.
PennantPark investors receive a massive 10.89% dividend. The $8 SunTrust price target is higher than the $7.39 consensus price objective. The stock traded most recently at a per-share price of $6.59.
Takeover chatter on this company has been around for some time now. TG Therapeutics Inc. (NASDAQ: TGTX) is a biopharmaceutical company focused on the acquisition, development and commercialization of treatments for B-cell malignancies and autoimmune diseases.
Currently, TG Therapeutics is developing two therapies targeting hematological malignancies and autoimmune diseases. Ublituximab (TG-1101) is a novel, glycoengineered monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes. The company is also developing umbralisib (TGR-1202), an orally available PI3K delta inhibitor.
SunTrust has a giant $16 price target on the shares. The consensus target price is higher at $17.71, and the stock closed most recently at $6.92.
This micro-cap company could explode higher for investors. Unum Therapeutics Inc. (NASDAQ: UMRX) is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel immunotherapy products designed to harness the power of a patient’s immune system to cure cancer. The firm’s technologies include an antibody-coupled T-cell receptor, which is a chimeric protein that binds to tumor-targeting antibodies.
Unum has four programs currently in Phase 1 clinical testing, including ACTR707, used in combination with rituximab in adult patients with r/r NHL. ACTR087 is used in combination with the novel antibody SEA-BCMA in r/r multiple myeloma, and ACTR707 is used in combination with trastuzumab in adult patients with HER2+ advanced cancer.
SunTrust has set its target price at a whopping $10. But that stands way below the massive $16 consensus price target. The shares ended last week at $3.38 apiece.
These are five stocks for very aggressive accounts looking to get share-count leverage on companies that have sizable upside potential. While they are not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and SunTrust and other major Wall Street firms have research coverage on them.