PennyMac Mortgage Investment Trust (NYSE:PMT) to Issue $0.40 Quarterly Dividend

Key Points

• PennyMac Mortgage Investment Trust declared a quarterly dividend of $0.40 per share, payable October 23 to shareholders of record on October 8. The dividend implies a 16.8% annualized yield, with October 8 also serving as the ex-dividend date.
• The dividend appears financially strained: PMT’s payout ratio is 101.9%, while analysts expect next year’s earnings of $1.32 per share versus $1.60 in annual dividends, implying a projected payout ratio of 121.2%.
• PMT recently reported quarterly EPS of $0.23, below the $0.30 consensus estimate, and revenue of negative $46 million versus expectations of $93.93 million. The stock traded around $9.51, near its one-year low of $9.05.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) announced a quarterly dividend on Wednesday, September 2nd. Shareholders of record on Thursday, October 8th will be given a dividend of 0.40 per share by the real estate investment trust on Friday, October 23rd. This represents a c) annualized dividend and a yield of 16.8%. The ex-dividend date of this dividend is Thursday, October 8th.

PennyMac Mortgage Investment Trust has raised its dividend by an average of 0.0%annually over the last three years. PennyMac Mortgage Investment Trust has a dividend payout ratio of 101.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect PennyMac Mortgage Investment Trust to earn $1.32 per share next year, which means the company may not be able to cover its $1.60 annual dividend with an expected future payout ratio of 121.2%.

PennyMac Mortgage Investment Trust Stock Performance

PMT traded up $0.27 during midday trading on Wednesday, hitting $9.51. 889,078 shares of the company were exchanged, compared to its average volume of 1,272,299. The company's 50 day simple moving average is $9.86 and its 200 day simple moving average is $10.82. The firm has a market capitalization of $828.86 million, a price-to-earnings ratio of 6.69, a price-to-earnings-growth ratio of 0.69 and a beta of 1.14. PennyMac Mortgage Investment Trust has a 1-year low of $9.05 and a 1-year high of $13.81. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 9.18.

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

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

A number of institutional investors have recently added to or reduced their stakes in PMT. BlackRock Inc. acquired a new stake in shares of PennyMac Mortgage Investment Trust in the second quarter valued at about $164,344,000. California State Teachers Retirement System raised its position in shares of PennyMac Mortgage Investment Trust by 1,339.5% during the 2nd quarter. California State Teachers Retirement System now owns 1,130,211 shares of the real estate investment trust's stock worth $12,749,000 after purchasing an additional 1,051,698 shares during the last quarter. Nuveen LLC lifted its stake in PennyMac Mortgage Investment Trust by 350.3% in the 4th quarter. Nuveen LLC now owns 927,864 shares of the real estate investment trust's stock valued at $11,645,000 after buying an additional 721,790 shares in the last quarter. Royal Bank of Canada lifted its stake in PennyMac Mortgage Investment Trust by 1,469.4% in the 1st quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock valued at $7,488,000 after buying an additional 601,233 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in PennyMac Mortgage Investment Trust in the 2nd quarter worth about $6,137,000. Institutional investors and hedge funds 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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