BlackRock Inc. Takes $164.34 Million Position in PennyMac Mortgage Investment Trust $PMT

Key Points

• BlackRock acquired 14.57 million PMT shares worth approximately $164.3 million, giving it a 16.71% stake in PennyMac Mortgage Investment Trust. Institutional investors and hedge funds collectively own 67.38% of the company.
• PMT shares opened at $9.36, near their 12-month low of $9.05 and below their 200-day moving average of $10.87. The REIT missed quarterly earnings estimates, reporting $0.23 per share versus the $0.30 consensus.
• The company paid a quarterly dividend of $0.40 per share, equivalent to a 17.1% annualized yield, though its payout ratio is elevated at 112.68%. Analysts have a consensus “Hold” rating and an average price target of $11.50, while several firms recently lowered targets or issued sell ratings.

BlackRock Inc. purchased a new position in shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 14,569,469 shares of the real estate investment trust's stock, valued at approximately $164,344,000. BlackRock Inc. owned 16.71% of PennyMac Mortgage Investment Trust at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the company. Nuveen LLC lifted its position in shares of PennyMac Mortgage Investment Trust by 350.3% during the 4th quarter. Nuveen LLC now owns 927,864 shares of the real estate investment trust's stock worth $11,645,000 after buying an additional 721,790 shares during the last quarter. Royal Bank of Canada lifted its holdings in shares of PennyMac Mortgage Investment Trust by 1,469.4% in the first quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock worth $7,488,000 after acquiring an additional 601,233 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of PennyMac Mortgage Investment Trust in the 2nd quarter valued at approximately $6,137,000. JPMorgan Chase & Co. grew its holdings in shares of PennyMac Mortgage Investment Trust by 149.1% during the 4th quarter. JPMorgan Chase & Co. now owns 873,470 shares of the real estate investment trust's stock valued at $10,962,000 after purchasing an additional 522,839 shares during the last quarter. Finally, Barclays PLC increased its position in PennyMac Mortgage Investment Trust by 93.2% during the 3rd quarter. Barclays PLC now owns 992,581 shares of the real estate investment trust's stock worth $12,169,000 after purchasing an additional 478,947 shares in the last quarter. 67.38% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Mortgage Investment Trust Price Performance

Shares of NYSE PMT opened at $9.36 on Friday. The company has a market capitalization of $816.19 million, a PE ratio of 6.59, a P/E/G ratio of 0.69 and a beta of 1.14. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 9.18. PennyMac Mortgage Investment Trust has a twelve month low of $9.05 and a twelve month high of $13.81. The firm has a fifty day simple moving average of $9.89 and a 200 day simple moving average of $10.87.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last posted its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $93.93 million. PennyMac Mortgage Investment Trust had a return on equity of 12.50% and a net margin of 47.79%. On average, sell-side analysts forecast that PennyMac Mortgage Investment Trust will post 1.03 EPS for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

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

Analysts Set New Price Targets

Several equities analysts recently commented on PMT shares. UBS Group dropped their price objective on shares of PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a "neutral" rating for the company in a research note on Friday, August 21st. Wall Street Zen downgraded PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of PennyMac Mortgage Investment Trust in a report on Tuesday, August 18th. Wells Fargo & Company dropped 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. Finally, Zacks Research cut PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 27th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, PennyMac Mortgage Investment Trust presently has a consensus rating of "Hold" and a consensus price target of $11.50.

PennyMac Mortgage Investment Trust Company Profile

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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