PennyMac Mortgage Investment Trust (NYSE:PMT) Hits New 1-Year Low - Should You Sell?

Key Points

• PennyMac Mortgage Investment Trust's stock reached a new 52-week low of **$11.64** amidst analyst downgrades, including a **"strong sell"** rating from Zacks Research.
• The company announced a quarterly dividend of **$0.40**, resulting in an annualized yield of **13.7%**, despite a high payout ratio of **222.22%**.
• In recent trading, **institutional investors owned 67.38%** of the company’s stock, with significant purchases made by GAMMA Investing LLC and other large shareholders.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The company traded as low as $11.67 and last traded at $11.64, with a volume of 588500 shares. The stock had previously closed at $12.05.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on PMT shares. Zacks Research downgraded PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research note on Monday, September 22nd. Weiss Ratings restated a "sell (d+)" rating on shares of PennyMac Mortgage Investment Trust in a research note on Wednesday, October 8th. Wells Fargo & Company started 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 target on the stock. Finally, Keefe, Bruyette & Woods downgraded PennyMac Mortgage Investment Trust from an "outperform" rating to a "market perform" rating and dropped their price target for the stock from $14.50 to $13.50 in a research note on Friday, July 25th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $14.00.

PennyMac Mortgage Investment Trust Stock Down 3.3%

The company has a 50-day moving average price of $12.21 and a 200 day moving average price of $12.55. The firm has a market capitalization of $1.01 billion, a PE ratio of 16.18, a P/E/G ratio of 2.93 and a beta of 1.29. The company has a debt-to-equity ratio of 3.82, a current ratio of 0.80 and a quick ratio of 0.80.

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

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Friday, October 10th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 13.7%. The ex-dividend date of this dividend is Friday, October 10th. PennyMac Mortgage Investment Trust's payout ratio is 222.22%.

Insider Activity

In other news, Director Catherine A. Lynch bought 2,823 shares of PennyMac Mortgage Investment Trust stock in a transaction dated Monday, September 22nd. The shares were purchased at an average cost of $12.02 per share, with a total value of $33,932.46. Following the completion of the acquisition, the director owned 54,711 shares of the company's stock, valued at $657,626.22. This trade represents a 5.44% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.92% of the company's stock.

Institutional Trading of PennyMac Mortgage Investment Trust

A number of large investors have recently modified their holdings of the company. GAMMA Investing LLC lifted its holdings in shares of PennyMac Mortgage Investment Trust by 4,354.2% during the 1st quarter. GAMMA Investing LLC now owns 29,754 shares of the real estate investment trust's stock valued at $436,000 after purchasing an additional 29,086 shares during the last quarter. QRG Capital Management Inc. grew its position in PennyMac Mortgage Investment Trust by 8.3% during the 1st quarter. QRG Capital Management Inc. now owns 25,673 shares of the real estate investment trust's stock worth $376,000 after purchasing an additional 1,974 shares during the period. TrueMark Investments LLC acquired a new stake in shares of PennyMac Mortgage Investment Trust during the 1st quarter valued at about $3,106,000. Motiv8 Investments LLC grew its position in shares of PennyMac Mortgage Investment Trust by 13.1% during the 1st quarter. Motiv8 Investments LLC now owns 11,547 shares of the real estate investment trust's stock valued at $169,000 after acquiring an additional 1,333 shares during the period. Finally, Principal Financial Group Inc. grew its position in shares of PennyMac Mortgage Investment Trust by 2.5% during the 1st quarter. Principal Financial Group Inc. now owns 549,340 shares of the real estate investment trust's stock valued at $8,048,000 after acquiring an additional 13,441 shares during the period. Hedge funds and other institutional investors own 67.38% of the company's stock.

PennyMac Mortgage Investment Trust Company Profile

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.

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