PennyMac Mortgage Investment Trust (NYSE:PMT) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Brokerage consensus: Eight analysts assign PennyMac Mortgage Investment Trust a consensus "Hold" rating (five holds, three buys) with an average 12‑month price target of $13.75, suggesting modest upside from current levels.
• Generous but risky dividend: The REIT pays a $0.40 quarterly dividend ($1.60 annualized) for a 13.4% yield, but the dividend payout ratio is very high at 163.3%, indicating sustainability concerns.
• Recent performance and valuation: PMT beat quarterly EPS estimates ($0.48 vs. $0.41), trades around $11.92 with a market cap of about $1.04 billion and a P/E near 12.2, and is ~67% institutionally owned.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) have been assigned an average rating of "Hold" from the eight brokerages that are currently covering the stock, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $13.75.

A number of research analysts have recently weighed in on the company. Citigroup restated an "outperform" rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods raised shares of PennyMac Mortgage Investment Trust from a "market perform" rating to an "outperform" rating and set a $13.50 price objective on the stock in a research note on Thursday, December 18th. Citizens Jmp dropped their target price on shares of PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a "market outperform" rating for the company in a report on Thursday, January 22nd. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of PennyMac Mortgage Investment Trust in a research report on Monday, December 29th.

PennyMac Mortgage Investment Trust Stock Down 1.2%

PMT opened at $11.92 on Friday. PennyMac Mortgage Investment Trust has a one year low of $11.60 and a one year high of $14.93. The company has a debt-to-equity ratio of 6.55, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a market capitalization of $1.04 billion, a P/E ratio of 12.16, a price-to-earnings-growth ratio of 1.00 and a beta of 1.25. The business's 50-day simple moving average is $12.65 and its 200-day simple moving average is $12.48.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.07. The business had revenue of $0.15 million during the quarter, compared to the consensus estimate of $96.96 million. PennyMac Mortgage Investment Trust had a return on equity of 9.53% and a net margin of 41.59%. Analysts anticipate that PennyMac Mortgage Investment Trust will post 1.54 EPS for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, December 26th were given a $0.40 dividend. The ex-dividend date of this dividend was Friday, December 26th. This represents a $1.60 annualized dividend and a dividend yield of 13.4%. PennyMac Mortgage Investment Trust's dividend payout ratio is presently 163.27%.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

A number of hedge funds have recently added to or reduced their stakes in the stock. Flagship Harbor Advisors LLC acquired a new stake in shares of PennyMac Mortgage Investment Trust during the 4th quarter valued at about $26,000. Allworth Financial LP increased its holdings in PennyMac Mortgage Investment Trust by 1,741.7% in the second quarter. Allworth Financial LP now owns 2,118 shares of the real estate investment trust's stock worth $27,000 after buying an additional 2,003 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in PennyMac Mortgage Investment Trust during the fourth quarter valued at approximately $33,000. GAMMA Investing LLC lifted its stake in PennyMac Mortgage Investment Trust by 102.8% in the fourth quarter. GAMMA Investing LLC now owns 2,752 shares of the real estate investment trust's stock valued at $35,000 after acquiring an additional 1,395 shares during the last quarter. Finally, Clearstead Advisors LLC lifted its position in shares of PennyMac Mortgage Investment Trust by 184.3% in the fourth quarter. Clearstead Advisors LLC now owns 2,800 shares of the real estate investment trust's stock worth $35,000 after buying an additional 1,815 shares during the last quarter. 67.38% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.