Analysts Set PennyMac Mortgage Investment Trust (NYSE:PMT) Price Target at $14.00

Key Points

• PennyMac Mortgage Investment Trust has a consensus rating of "Hold" from six brokerages, with one buy recommendation and an average price target of $14.00.
• The company reported an earnings miss of ($0.04) per share, significantly below the consensus estimate of $0.35, alongside revenue of $70.20 million for the quarter.
• PennyMac recently announced a quarterly dividend of $0.40, yielding 13.0% annually, with an unusually high payout ratio of 222.22%.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) has earned a consensus recommendation of "Hold" from the six brokerages that are covering the firm, Marketbeat.com reports. Five investment analysts have rated the stock with a hold rating and one has given a buy rating to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $14.00.

Several brokerages have recently issued reports on PMT. Wells Fargo & Company began coverage on PennyMac Mortgage Investment Trust in a research note on Monday, August 25th. They issued an "equal weight" rating and a $13.00 price objective for the company. Keefe, Bruyette & Woods lowered PennyMac Mortgage Investment Trust from an "outperform" rating to a "market perform" rating and dropped their target price for the company from $14.50 to $13.50 in a report on Friday, July 25th.

PennyMac Mortgage Investment Trust Stock Down 0.0%

Shares of PMT traded down $0.01 during mid-day trading on Friday, hitting $12.25. 427,877 shares of the company traded hands, compared to its average volume of 603,197. PennyMac Mortgage Investment Trust has a 1-year low of $11.70 and a 1-year high of $14.93. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 3.82. The company has a market capitalization of $1.07 billion, a PE ratio of 17.01, a price-to-earnings-growth ratio of 3.00 and a beta of 1.30. The business has a 50 day moving average of $12.34 and a 200 day moving average of $12.89.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The real estate investment trust reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.35 by ($0.39). PennyMac Mortgage Investment Trust had a net margin of 34.65% and a return on equity of 7.68%. The business had revenue of $70.20 million for the quarter, compared to analysts' expectations of $95.46 million. Equities research analysts anticipate that PennyMac Mortgage Investment Trust will post 1.54 EPS for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 13.1%. The ex-dividend date was Friday, July 11th. PennyMac Mortgage Investment Trust's payout ratio is presently 222.22%.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

Institutional investors have recently added to or reduced their stakes in the business. Public Sector Pension Investment Board increased its stake in PennyMac Mortgage Investment Trust by 7.7% during the second quarter. Public Sector Pension Investment Board now owns 296,655 shares of the real estate investment trust's stock worth $3,815,000 after acquiring an additional 21,232 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of PennyMac Mortgage Investment Trust by 113.0% in the second quarter. Tower Research Capital LLC TRC now owns 11,223 shares of the real estate investment trust's stock valued at $144,000 after buying an additional 5,954 shares in the last quarter. Prevail Innovative Wealth Advisors LLC boosted its holdings in PennyMac Mortgage Investment Trust by 189.9% in the second quarter. Prevail Innovative Wealth Advisors LLC now owns 183,004 shares of the real estate investment trust's stock valued at $2,353,000 after purchasing an additional 119,884 shares during the last quarter. EP Wealth Advisors LLC purchased a new position in PennyMac Mortgage Investment Trust in the second quarter valued at about $277,000. Finally, BNP Paribas Financial Markets grew its position in shares of PennyMac Mortgage Investment Trust by 197.9% in the 2nd quarter. BNP Paribas Financial Markets now owns 30,655 shares of the real estate investment trust's stock worth $394,000 after acquiring an additional 20,366 shares in the last quarter. 67.38% of the stock is currently owned by institutional investors and hedge funds.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate.