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PennyMac Mortgage Investment Trust (NYSE:PMT) Issues Quarterly Earnings Results

PennyMac Mortgage Investment Trust logo with Finance background

Key Points

  • PennyMac Mortgage Investment Trust (NYSE:PMT) reported a quarterly EPS of $0.55, exceeding estimates by $0.19 amidst a net margin of 34.65% and a return on equity of 7.68%.
  • The company announced a quarterly dividend of $0.40 per share, yielding 13.7%, with the payment scheduled for October 24th.
  • Multiple hedge funds have raised their stakes in PennyMac, highlighting institutional confidence in the company, which now has 67.38% of its stock owned by institutional investors.
  • MarketBeat previews top five stocks to own in November.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) issued its earnings results on Tuesday. The real estate investment trust reported $0.55 EPS for the quarter, topping the consensus estimate of $0.36 by $0.19, Zacks reports. PennyMac Mortgage Investment Trust had a return on equity of 7.68% and a net margin of 34.65%.

PennyMac Mortgage Investment Trust Trading Down 1.2%

Shares of PennyMac Mortgage Investment Trust stock traded down $0.14 during midday trading on Tuesday, reaching $11.69. 694,792 shares of the company's stock traded hands, compared to its average volume of 812,928. The company has a debt-to-equity ratio of 3.82, a quick ratio of 0.80 and a current ratio of 0.80. The company has a market cap of $1.02 billion, a PE ratio of 16.24, a price-to-earnings-growth ratio of 2.87 and a beta of 1.29. The stock has a 50 day moving average of $12.20 and a 200-day moving average of $12.47. PennyMac Mortgage Investment Trust has a 12 month low of $11.60 and a 12 month high of $14.93.

PennyMac Mortgage Investment Trust Announces Dividend

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

Insider Activity at PennyMac Mortgage Investment Trust

In other PennyMac Mortgage Investment Trust news, Director Catherine A. Lynch bought 2,823 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The stock was bought at an average price of $12.02 per share, for a total transaction of $33,932.46. Following the completion of the acquisition, the director directly owned 54,711 shares in the company, valued at $657,626.22. The trade was a 5.44% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.92% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in PMT. AQR Capital Management LLC raised its holdings in shares of PennyMac Mortgage Investment Trust by 36.7% during the first 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 in the last quarter. Jane Street Group LLC bought a new position in shares of PennyMac Mortgage Investment Trust during the first quarter valued at approximately $4,166,000. Intech Investment Management LLC raised its holdings in shares of PennyMac Mortgage Investment Trust by 1.3% during the first 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 in the last quarter. JPMorgan Chase & Co. grew its stake in 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 worth $5,678,000 after purchasing an additional 19,389 shares during the period. Finally, Russell Investments Group Ltd. lifted its holdings in shares of PennyMac Mortgage Investment Trust by 49.0% during 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 in the last quarter. Institutional investors own 67.38% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Wells Fargo & Company assumed coverage on PennyMac Mortgage Investment Trust in a research note on Monday, August 25th. They issued an "equal weight" rating and a $13.00 target price for the company. Keefe, Bruyette & Woods downgraded PennyMac Mortgage Investment Trust from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $14.50 to $13.50 in a research note on Friday, July 25th. Weiss Ratings reiterated a "sell (d+)" rating on shares of PennyMac Mortgage Investment Trust in a research report on Wednesday, October 8th. Finally, Zacks Research downgraded PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research report on Monday, September 22nd. One analyst has rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average price target of $14.00.

Read Our Latest Analysis on PMT

PennyMac Mortgage Investment Trust Company Profile

(Get Free Report)

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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Earnings History for PennyMac Mortgage Investment Trust (NYSE:PMT)

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