PennyMac Mortgage Investment Trust (NYSE:PMT) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analyst consensus is “Hold”: Of nine analysts, two rate PennyMac Mortgage Investment Trust a sell, four hold, and three buy. The average 12-month price target is $11.50, with several firms recently lowering targets or downgrading the stock.
• Recent results missed expectations: PMT reported quarterly EPS of $0.23 versus the $0.30 consensus estimate and revenue of negative $46 million compared with expectations of $93.93 million.
• Dividend yield is notably high: The company pays an annualized dividend of $1.60 per share, representing a 17.1% yield, but its dividend payout ratio is 112.68%, exceeding reported earnings.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) have earned an average recommendation of "Hold" from the nine research firms that are presently covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $11.50.

Several analysts recently commented on the stock. Keefe, Bruyette & Woods restated a "market perform" rating and set a $12.00 price target (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a report on Friday, May 8th. Zacks Research lowered shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 27th. Piper Sandler cut their target price on shares of PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Weiss Ratings reissued a "sell (d+)" rating on shares of PennyMac Mortgage Investment Trust in a research note on Tuesday, August 18th. Finally, Wall Street Zen cut shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th.

PennyMac Mortgage Investment Trust Stock Up 0.3%

Shares of PennyMac Mortgage Investment Trust stock opened at $9.36 on Friday. PennyMac Mortgage Investment Trust has a 1 year low of $9.05 and a 1 year high of $13.81. The company has a market cap of $816.19 million, a P/E ratio of 6.59, a P/E/G ratio of 0.69 and a beta of 1.14. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 9.18. The stock has a 50-day moving average price of $9.89 and a 200 day moving average price of $10.87.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last released its earnings results on Wednesday, July 29th. The real estate investment trust reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.07). The business had revenue of ($46.00) million for the quarter, compared to analysts' expectations of $93.93 million. PennyMac Mortgage Investment Trust had a net margin of 47.79% and a return on equity of 12.50%. As a group, analysts expect that PennyMac Mortgage Investment Trust will post 1.03 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Thursday, July 9th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Thursday, July 9th. This represents a $1.60 dividend on an annualized basis and a yield of 17.1%. PennyMac Mortgage Investment Trust's dividend payout ratio (DPR) is presently 112.68%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Bessemer Group Inc. raised its stake in shares of PennyMac Mortgage Investment Trust by 142.1% during the 1st quarter. Bessemer Group Inc. now owns 2,189 shares of the real estate investment trust's stock worth $25,000 after purchasing an additional 1,285 shares in the last quarter. Allworth Financial LP acquired a new stake in shares of PennyMac Mortgage Investment Trust during the 2nd quarter valued at about $33,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of PennyMac Mortgage Investment Trust in the 4th quarter valued at approximately $33,000. Clearstead Advisors LLC increased its holdings in PennyMac Mortgage Investment Trust by 184.3% in the fourth quarter. Clearstead Advisors LLC now owns 2,800 shares of the real estate investment trust's stock worth $35,000 after buying an additional 1,815 shares during the last quarter. Finally, Nykredit A S bought a new position in PennyMac Mortgage Investment Trust during the second quarter valued at approximately $37,000. Hedge funds and other institutional investors own 67.38% of the company's stock.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust NYSE: PMT is a publicly traded real estate investment trust (REIT) that primarily acquires and manages residential mortgage loans and mortgage-related assets. The company focuses on generating attractive risk-adjusted returns through investment in agency and non-agency residential mortgage pools, credit risk transfer securities, and residential mortgage whole loans. As a mortgage REIT, PennyMac Investment Trust seeks to capture both interest rate spread and potential price appreciation in its portfolio holdings.

Established with external management by PennyMac Financial Services, Inc, the trust leverages the sponsor's mortgage servicing, underwriting and capital markets expertise.

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