PennyMac Mortgage Investment Trust (NYSE:PMT) Reaches New 1-Year Low - Here's What Happened

Key Points

• PennyMac Mortgage Investment Trust (NYSE: PMT) hit a new 52-week low of $9.80, reflecting continued weakness as the stock fell about 2.8% intraday.
• Recent analyst actions have been mostly cautious, with multiple firms lowering ratings or price targets; the consensus view is currently Hold with an average price target of $12.80.
• The company recently missed earnings expectations, posting $0.16 EPS versus the $0.36 estimate, though it also announced a $0.40 quarterly dividend that implies a high 16.3% annualized yield.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $9.80 and last traded at $9.8350, with a volume of 1977170 shares traded. The stock had previously closed at $10.12.

Wall Street Analysts Forecast Growth

PMT has been the subject of several research analyst reports. Wall Street Zen downgraded shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Weiss Ratings downgraded PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, May 21st. Piper Sandler decreased their price target on PennyMac Mortgage Investment Trust from $13.00 to $11.50 and set a "neutral" rating on the stock in a research note on Tuesday, May 26th. Keefe, Bruyette & Woods reissued a "market perform" rating and set a $12.00 price target (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a report on Friday, May 8th. Finally, Wells Fargo & Company lowered their price target on PennyMac Mortgage Investment Trust from $13.00 to $12.00 and set an "equal weight" rating for the company in a report on Thursday, May 7th. Two 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 company. According to data from MarketBeat, PennyMac Mortgage Investment Trust presently has an average rating of "Hold" and an average price target of $12.80.

PennyMac Mortgage Investment Trust Trading Down 2.8%

The company has a market capitalization of $857.61 million, a price-to-earnings ratio of 8.55, a P/E/G ratio of 0.65 and a beta of 1.13. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 7.99. The business's 50 day moving average price is $10.44 and its two-hundred day moving average price is $11.63.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.16 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.20). The company had revenue of $233.25 million during the quarter, compared to the consensus estimate of $92.92 million. PennyMac Mortgage Investment Trust had a net margin of 41.38% and a return on equity of 10.71%. On average, equities analysts predict that PennyMac Mortgage Investment Trust will post 1.16 earnings per share for the current fiscal year.

PennyMac Mortgage Investment Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Thursday, July 9th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 16.3%. The ex-dividend date is Thursday, July 9th. PennyMac Mortgage Investment Trust's dividend payout ratio is presently 139.13%.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Nuveen LLC raised its holdings in PennyMac Mortgage Investment Trust by 350.3% in the 4th quarter. Nuveen LLC now owns 927,864 shares of the real estate investment trust's stock valued at $11,645,000 after buying an additional 721,790 shares during the last quarter. Royal Bank of Canada boosted its position in PennyMac Mortgage Investment Trust by 1,469.4% during the 1st quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock worth $7,488,000 after buying an additional 601,233 shares during the period. JPMorgan Chase & Co. grew its holdings in PennyMac Mortgage Investment Trust by 149.1% during the 4th quarter. JPMorgan Chase & Co. now owns 873,470 shares of the real estate investment trust's stock worth $10,962,000 after acquiring an additional 522,839 shares during the last quarter. SG Americas Securities LLC grew its holdings in PennyMac Mortgage Investment Trust by 1,586.5% during the 4th quarter. SG Americas Securities LLC now owns 526,950 shares of the real estate investment trust's stock worth $6,613,000 after acquiring an additional 495,704 shares during the last quarter. Finally, Barclays PLC increased its position in PennyMac Mortgage Investment Trust by 93.2% in the 3rd quarter. Barclays PLC now owns 992,581 shares of the real estate investment trust's stock valued at $12,169,000 after acquiring an additional 478,947 shares during the period. Institutional investors own 67.38% of the company's stock.

About PennyMac Mortgage Investment Trust

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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