PennyMac Mortgage Investment Trust (NYSE:PMT) Stock Has Average Price Target of $10.92

Key Points

• Analyst sentiment is mixed: Nine brokerages give PennyMac Mortgage Investment Trust a consensus “Hold” rating, with an average 12-month price target of $10.92 versus the stock’s $6.93 opening price.
• Institutional ownership remains substantial: Hedge funds and other institutional investors own 67.38% of PMT, with BlackRock acquiring a new $164.3 million position and several firms increasing their stakes.
• Dividend yield is high but earnings fell short: PMT declared a quarterly dividend of $0.40 per share, implying a 23.1% annualized yield, while quarterly EPS of $0.23 missed the $0.30 consensus estimate and revenue was negative $46 million.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) has been assigned a consensus recommendation of "Hold" from the nine brokerages that are covering the company, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $10.92.

A number of equities research analysts have recently weighed in on PMT shares. Wells Fargo & Company reduced their price objective on shares of PennyMac Mortgage Investment Trust from $12.00 to $10.00 and set an "equal weight" rating on the stock in a report on Friday, July 31st. Weiss Ratings downgraded shares of PennyMac Mortgage Investment Trust from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, October 8th. Deutsche Bank Aktiengesellschaft upgraded shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "buy" rating and set a $12.00 target price for the company in a research note on Saturday, August 15th. Piper Sandler dropped their target price on PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a "neutral" rating on the stock in a report on Friday, October 9th. Finally, UBS Group cut their price target on PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a "neutral" rating on the stock in a research note on Friday, August 21st.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in PMT. BlackRock Inc. acquired a new position in shares of PennyMac Mortgage Investment Trust in the 2nd quarter valued at $164,344,000. Royal Bank of Canada boosted its stake in PennyMac Mortgage Investment Trust by 1,469.4% during the 1st quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock worth $7,488,000 after purchasing an additional 601,233 shares during the period. Bank of New York Mellon Corp acquired a new stake in PennyMac Mortgage Investment Trust during the 2nd quarter worth $6,137,000. Bank of America Corp DE acquired a new stake in PennyMac Mortgage Investment Trust during the 2nd quarter worth $4,549,000. Finally, First Trust Advisors LP boosted its stake in PennyMac Mortgage Investment Trust by 389.6% during the 1st quarter. First Trust Advisors LP now owns 408,785 shares of the real estate investment trust's stock worth $4,766,000 after purchasing an additional 325,299 shares during the period. Hedge funds and other institutional investors own 67.38% of the company's stock.

PennyMac Mortgage Investment Trust Stock Down 1.8%

Shares of PennyMac Mortgage Investment Trust stock opened at $6.93 on Friday. PennyMac Mortgage Investment Trust has a 52-week low of $6.80 and a 52-week high of $13.81. The company has a 50 day moving average of $8.74 and a 200 day moving average of $10.01. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 9.18. The company has a market capitalization of $604.73 million, a P/E ratio of 4.88, a P/E/G ratio of 0.39 and a beta of 1.20.

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

PennyMac Mortgage Investment Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Thursday, October 8th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 23.1%. The ex-dividend date of this dividend is Thursday, October 8th. PennyMac Mortgage Investment Trust's dividend payout ratio is currently 112.68%.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust NYSE: PMT is a mortgage real estate investment trust that invests primarily in residential mortgage-related assets. The company seeks to generate income through investments in mortgage loans, mortgage servicing rights, mortgage-backed securities and other credit-sensitive assets tied to the U.S. housing market.

PennyMac's activities include acquiring and managing newly originated and seasoned residential mortgage loans, investing in mortgage servicing rights and related financing arrangements, and participating in correspondent production activities.

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