First Trust Advisors LP Grows Position in PennyMac Mortgage Investment Trust $PMT

Key Points

• First Trust Advisors LP increased its PennyMac Mortgage Investment Trust position by 389.6% in the first quarter, bringing its holdings to 408,785 shares valued at approximately $4.8 million. Institutional investors collectively own 67.38% of PMT.
• Analyst sentiment is cautious: PMT has a consensus “Hold” rating and an average price target of $12.10, with several firms recently lowering ratings or price targets.
• PMT reported quarterly EPS of $0.23, missing the $0.30 consensus estimate, while revenue fell well short of expectations. The trust declared a $0.40 quarterly dividend, equivalent to a 16.8% annualized yield, although its payout ratio exceeds 100%.

First Trust Advisors LP grew its position in PennyMac Mortgage Investment Trust (NYSE:PMT - Free Report) by 389.6% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 408,785 shares of the real estate investment trust's stock after acquiring an additional 325,299 shares during the quarter. First Trust Advisors LP owned about 0.47% of PennyMac Mortgage Investment Trust worth $4,766,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. AQR Capital Management LLC increased its position in PennyMac Mortgage Investment Trust by 36.7% in the 1st quarter. AQR Capital Management LLC now owns 16,155 shares of the real estate investment trust's stock valued at $237,000 after acquiring an additional 4,335 shares during the period. Jane Street Group LLC acquired a new stake in PennyMac Mortgage Investment Trust during the 1st quarter worth approximately $4,166,000. Intech Investment Management LLC grew its stake in shares of PennyMac Mortgage Investment Trust by 1.3% in the 1st quarter. Intech Investment Management LLC now owns 109,272 shares of the real estate investment trust's stock valued at $1,601,000 after purchasing an additional 1,411 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in shares of PennyMac Mortgage Investment Trust by 4.6% in the second quarter. JPMorgan Chase & Co. now owns 441,547 shares of the real estate investment trust's stock valued at $5,678,000 after purchasing an additional 19,389 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in shares of PennyMac Mortgage Investment Trust by 49.0% in the second quarter. Russell Investments Group Ltd. now owns 4,861 shares of the real estate investment trust's stock valued at $63,000 after purchasing an additional 1,599 shares during the period. 67.38% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Weiss Ratings downgraded shares of PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 21st. Piper Sandler dropped their price target on shares of PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. 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. Keefe, Bruyette & Woods restated a "market perform" rating and issued a $12.00 price objective (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a research report on Friday, May 8th. Finally, Zacks Research downgraded shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 27th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, PennyMac Mortgage Investment Trust presently has a consensus rating of "Hold" and an average price target of $12.10.

PennyMac Mortgage Investment Trust Trading Up 1.0%

PennyMac Mortgage Investment Trust stock opened at $9.53 on Wednesday. The stock has a 50-day moving average price of $10.17 and a 200 day moving average price of $11.31. PennyMac Mortgage Investment Trust has a 52 week low of $9.05 and a 52 week high of $13.81. The stock has a market cap of $831.36 million, a PE ratio of 6.71, a P/E/G ratio of 0.63 and a beta of 1.14. The company has a current ratio of 0.72, a quick ratio of 1.39 and a debt-to-equity ratio of 0.52.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last announced 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). The firm 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%. Equities research analysts predict that PennyMac Mortgage Investment Trust will post 1.12 earnings per share for the current fiscal year.

PennyMac Mortgage Investment Trust Dividend Announcement

The firm also recently declared 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. This represents a $1.60 dividend on an annualized basis and a yield of 16.8%. The ex-dividend date of this dividend was Thursday, July 9th. PennyMac Mortgage Investment Trust's dividend payout ratio is 112.68%.

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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