PennyMac Mortgage Investment Trust (NYSE:PMT) Issues Quarterly Earnings Results

Key Points

• PennyMac Mortgage Investment Trust beat quarterly earnings expectations, reporting EPS of $0.35 versus the $0.30 consensus estimate. Revenue reached $318.0 million, far above the $95.01 million forecast.
• PMT shares traded at $7.36, near the lower end of their 12-month range of $6.70 to $13.81. The stock offers a quarterly dividend of $0.40, equivalent to a 21.8% annualized yield, though its payout ratio exceeds 100%.
• Analyst sentiment remains mixed, with the stock holding a consensus “Hold” rating and an average price target of $10.92; recent firms have both raised and lowered their targets.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) announced its quarterly earnings results on Thursday. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.05, FiscalAI reports. The firm had revenue of $318.00 million during the quarter, compared to the consensus estimate of $95.01 million. PennyMac Mortgage Investment Trust had a return on equity of 12.50% and a net margin of 47.79%.

PennyMac Mortgage Investment Trust Stock Performance

Shares of PMT traded up $0.09 on Thursday, reaching $7.36. The company's stock had a trading volume of 2,783,922 shares, compared to its average volume of 1,492,547. The stock's 50 day simple moving average is $8.35 and its two-hundred day simple moving average is $10.50. The company has a debt-to-equity ratio of 9.18, a current ratio of 1.46 and a quick ratio of 1.46. The stock has a market capitalization of $641.36 million, a P/E ratio of 5.18, a PEG ratio of 0.40 and a beta of 1.20. PennyMac Mortgage Investment Trust has a 12-month low of $6.70 and a 12-month high of $13.81.

PennyMac Mortgage Investment Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Thursday, October 8th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 21.8%. The ex-dividend date of this dividend was Thursday, October 8th. PennyMac Mortgage Investment Trust's payout ratio is 112.68%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on PMT. Deutsche Bank Aktiengesellschaft raised shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "buy" rating and set a $12.00 target price on the stock in a report on Saturday, August 15th. 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. Wells Fargo & Company decreased their target price on PennyMac Mortgage Investment Trust from $12.00 to $10.00 and set an "equal weight" rating for the company in a research report on Friday, July 31st. Citizens Jmp decreased their target price on PennyMac Mortgage Investment Trust from $15.00 to $12.50 and set a "market outperform" rating for the company in a research note on Thursday, October 15th. Finally, UBS Group dropped 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. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PennyMac Mortgage Investment Trust currently has an average rating of "Hold" and a consensus target price of $10.92.

About PennyMac Mortgage Investment Trust

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

PMT's business activities include acquiring and managing mortgage loans, mortgage-backed securities and related investments. Through its correspondent production strategy, the trust invests in newly originated residential mortgage loans purchased from correspondent lenders.

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