PennyMac Mortgage Investment Trust (NYSE:PMT) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• PennyMac Mortgage Investment Trust (NYSE: PMT) has a consensus analyst rating of "Hold", with two sell, four hold, and two buy ratings. The average 1-year price target is $12.80.
• The company recently reported quarterly earnings of $0.16 per share, missing estimates, though revenue came in well above expectations at $233.25 million. Analysts now expect full-year earnings of about $1.16 per share.
• PMT also announced a quarterly dividend of $0.40 per share, or $1.60 annually, which implies a 15.8% yield. Institutional investors own 67.38% of the stock, and several funds recently increased their stakes.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) have been given a consensus rating of "Hold" by the eight research firms that are covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and two have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $12.80.

A number of brokerages recently issued reports on PMT. Wall Street Zen cut shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Weiss Ratings lowered PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, May 21st. Wells Fargo & Company reduced 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 research report on Thursday, May 7th. Piper Sandler decreased their price target on PennyMac Mortgage Investment Trust from $13.00 to $11.50 and set a "neutral" rating for the company in a research note on Tuesday, May 26th. Finally, Keefe, Bruyette & Woods reissued a "market perform" rating and set a $12.00 price objective (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a report on Friday, May 8th.

PennyMac Mortgage Investment Trust Price Performance

NYSE PMT opened at $10.12 on Friday. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 7.99. The stock has a market capitalization of $882.90 million, a PE ratio of 8.80, a price-to-earnings-growth ratio of 0.67 and a beta of 1.13. PennyMac Mortgage Investment Trust has a 12-month low of $9.83 and a 12-month high of $13.81. The company has a 50 day moving average price of $10.55 and a two-hundred day moving average price of $11.69.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last announced its quarterly earnings results 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 business had revenue of $233.25 million for the quarter, compared to analyst estimates of $92.92 million. PennyMac Mortgage Investment Trust had a return on equity of 10.71% and a net margin of 41.38%. As a group, equities analysts predict that PennyMac Mortgage Investment Trust will post 1.16 earnings per share for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Thursday, July 9th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, July 9th. This represents a $1.60 dividend on an annualized basis and a yield of 15.8%. PennyMac Mortgage Investment Trust's dividend payout ratio is presently 139.13%.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

A number of institutional investors have recently modified their holdings of PMT. Nuveen LLC lifted its stake in shares of PennyMac Mortgage Investment Trust by 350.3% in the fourth quarter. Nuveen LLC now owns 927,864 shares of the real estate investment trust's stock worth $11,645,000 after buying an additional 721,790 shares during the last quarter. Royal Bank of Canada grew its stake in PennyMac Mortgage Investment Trust by 1,469.4% in the 1st quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock valued at $7,488,000 after buying an additional 601,233 shares during the last quarter. JPMorgan Chase & Co. grew its stake in PennyMac Mortgage Investment Trust by 149.1% in the 4th quarter. JPMorgan Chase & Co. now owns 873,470 shares of the real estate investment trust's stock valued at $10,962,000 after buying an additional 522,839 shares during the last quarter. SG Americas Securities LLC raised its holdings in PennyMac Mortgage Investment Trust by 1,586.5% in 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 period. Finally, Barclays PLC raised its holdings 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 worth $12,169,000 after acquiring an additional 478,947 shares during the period. Institutional investors own 67.38% of the company's stock.

PennyMac Mortgage Investment Trust Company 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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