Pennantpark Investment Corp (PNNT) has been screaming over the past few months and another solid quarterly announcement added fuel to the fire.

Company Description

PennantPark develops business through both direct and mezzanine investments in mid-market companies. The company makes non-control investments as well and utilized many forms of debt and equity vehicles to fund these mostly private companies.

The firm has about 7% invested in equity and the balance in different forms of debt. PennantPark hold businesses in a well-balanced selection of industries.

A Solid Quarter

On May 6 PannantPark reported second-quarter results for fiscal 2009 that included investments in 35 companies with an average commitment of nearly $10.4 million. The average yield on debt investments for the quarter was nearly 22%.

This translated to earning per share of $0.25, which met the consensus estimate. However, following the press release analysts began to revise estimates upwards.

+200% Growth

Full-year estimates for 2009 are now averaging $1.07, up 6 cents since the report. The consensus for 2010 is $1.11, up 12 cents in the same time period. These forecasts are calling for 206% growth this year and another 4% next year.

Quarterly estimate for the remaining 2 fiscal quarters are also on the rise.

Good Valuations

While the stock does carry a PEG ratio of 1.4, shares are trading at less than 7 times forward earnings.

In addition, PennantPark has a dividend yield of nearly 13%.

The Chart

PNNT shares have plenty of momentum also. You can see below that the stock has more than doubled in just over 2 months.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (LINC) Lincoln Educational Services Corp. – Aggressive Growth – Zacks Rank BuyLincoln Educational Services Corp. (LINC) shares continue to outpace major indices as estimates and guidance...
2. (URS) URS Corp. – Aggressive Growth – Zacks Rank BuyURS Corp. (URS) Company Description URS Corp provides a wide range of construction management and...
3. (HMSY) HMS Holdings Corp. – Aggressive Growth – Zacks Rank BuyHMS Holdings Corp. (HMSY) released another earnings surprise followed by bullish comments from its CEO....
4. (TG) Tredegar Corp. – Aggressive Growth – Zacks Rank BuyTredegar Corp. (TG) recently shocked Wall Street with its latest earnings report. Shares are climbing...
5. (HMSY) HMS Holdings Corp. – Aggressive Growth – Zacks Rank BuyHMS Holdings Corp. (HMSY) just announced a record-breaking quarter and estimates are on the rise....
6. (STAR) Starent Networks Corp. – Aggressive Growth – Zacks Rank BuyStarent Networks Corp. (STAR) shares are trading above a key level after a strong full-year...

Search Posts by Tag: Pennantpark Investment Corporation | PNNT | Closed-End Fund - Equity | Financial

RSS Feeds by Tag: Pennantpark Investment Corporation | PNNT | Closed-End Fund - Equity | Financial |

Other Posts by: vitalstocks | RSS Feed for this author