Royal Bank of Canada Acquires 601,233 Shares of PennyMac Mortgage Investment Trust $PMT

Key Points

• Royal Bank of Canada increased its PennyMac Mortgage Investment Trust stake by 1,469.4%, purchasing 601,233 additional shares to own 642,149 shares worth approximately $7.49 million, or 0.74% of PMT.
• Analyst sentiment weakened, with Piper Sandler and Wells Fargo cutting their price targets to $10, while several firms downgraded the stock to “sell” or “strong sell.” PMT carries a consensus “Hold” rating and a $12.10 average price target.
• PMT reported quarterly EPS of $0.23, below the $0.30 consensus estimate, but continues to offer a quarterly dividend of $0.40, representing a 17.1% annualized yield.

Royal Bank of Canada grew its holdings in shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Free Report) by 1,469.4% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 642,149 shares of the real estate investment trust's stock after purchasing an additional 601,233 shares during the period. Royal Bank of Canada owned about 0.74% of PennyMac Mortgage Investment Trust worth $7,488,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in PMT. Evergreen Capital Management LLC raised its position in shares of PennyMac Mortgage Investment Trust by 8.0% in the fourth quarter. Evergreen Capital Management LLC now owns 12,417 shares of the real estate investment trust's stock valued at $161,000 after buying an additional 915 shares in the last quarter. Collar Capital Management LLC increased its stake in PennyMac Mortgage Investment Trust by 1.2% during the 4th quarter. Collar Capital Management LLC now owns 90,615 shares of the real estate investment trust's stock worth $1,137,000 after acquiring an additional 1,100 shares during the period. Wedbush Securities Inc. raised its holdings in PennyMac Mortgage Investment Trust by 1.3% in the 4th quarter. Wedbush Securities Inc. now owns 90,310 shares of the real estate investment trust's stock valued at $1,133,000 after acquiring an additional 1,125 shares in the last quarter. Bessemer Group Inc. raised its holdings in PennyMac Mortgage Investment Trust by 142.1% in the 1st quarter. Bessemer Group Inc. now owns 2,189 shares of the real estate investment trust's stock valued at $25,000 after acquiring an additional 1,285 shares in the last quarter. Finally, Intech Investment Management LLC lifted its position in shares of PennyMac Mortgage Investment Trust by 1.3% during 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 acquiring an additional 1,411 shares during the period. 67.38% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have recently issued reports on PMT. Piper Sandler reduced their target price on PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Wall Street Zen cut shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Zacks Research downgraded shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 27th. Wells Fargo & Company decreased their target price 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. Finally, Weiss Ratings cut shares of PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 21st. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, PennyMac Mortgage Investment Trust currently has an average rating of "Hold" and a consensus price target of $12.10.

PennyMac Mortgage Investment Trust Stock Down 2.8%

Shares of NYSE PMT opened at $9.38 on Tuesday. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 9.18. The company has a market cap of $817.94 million, a price-to-earnings ratio of 6.61, a PEG ratio of 0.64 and a beta of 1.14. PennyMac Mortgage Investment Trust has a 12 month low of $9.05 and a 12 month high of $13.81. The stock has a 50-day moving average price of $10.09 and a two-hundred day moving average price of $11.19.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The real estate investment trust reported $0.23 EPS for the quarter, missing analysts' consensus estimates 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 company had revenue of ($46.00) million during the quarter, compared to the consensus estimate of $93.93 million. As a group, analysts forecast that PennyMac Mortgage Investment Trust will post 1.12 earnings per share for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Thursday, July 9th were paid a $0.40 dividend. The ex-dividend date of this dividend was Thursday, July 9th. This represents a $1.60 annualized dividend and a yield of 17.1%. PennyMac Mortgage Investment Trust's dividend payout ratio is presently 112.68%.

PennyMac Mortgage Investment Trust 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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