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

Key Points

• Analysts maintain a “Hold” consensus on PennyMac Mortgage Investment Trust, with two sell, four hold, and two buy ratings. The average 12-month price target is $12.10, though several firms recently lowered their targets to around $10–$12.
• PMT reported quarterly earnings of $0.23 per share, below the $0.30 consensus estimate, while revenue of negative $46 million also fell short of expectations.
• The company paid a quarterly dividend of $0.40 per share, equivalent to a 16.9% annualized yield, but its 112.68% payout ratio exceeds reported earnings. Institutional investors own 67.38% of the stock.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) has been assigned an average recommendation of "Hold" from the eight brokerages that are presently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $12.10.

Several research analysts have recently commented on PMT shares. Piper Sandler decreased their price objective on PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a "neutral" rating on the stock in a report on Thursday. Wall Street Zen cut PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Keefe, Bruyette & Woods restated a "market perform" rating and set a $12.00 price target (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a research report on Friday, May 8th. Weiss Ratings cut PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, May 21st. Finally, Wells Fargo & Company lowered their price objective on PennyMac Mortgage Investment Trust from $12.00 to $10.00 and set an "equal weight" rating for the company in a research report on Friday.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

Several institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC grew its holdings in PennyMac Mortgage Investment Trust by 68.0% in the 2nd quarter. GAMMA Investing LLC now owns 6,969 shares of the real estate investment trust's stock worth $79,000 after acquiring an additional 2,822 shares during the last quarter. Empowered Funds LLC bought a new position in shares of PennyMac Mortgage Investment Trust during the first quarter valued at about $239,000. Orographic Financial Advisors LLC bought a new position in shares of PennyMac Mortgage Investment Trust during the first quarter valued at about $118,000. Bank of America Corp DE boosted its holdings in shares of PennyMac Mortgage Investment Trust by 154.1% during the first quarter. Bank of America Corp DE now owns 412,512 shares of the real estate investment trust's stock worth $4,810,000 after purchasing an additional 250,160 shares during the period. Finally, Amundi boosted its holdings in shares of PennyMac Mortgage Investment Trust by 17.0% during the first quarter. Amundi now owns 15,855 shares of the real estate investment trust's stock worth $185,000 after purchasing an additional 2,304 shares during the period. Hedge funds and other institutional investors own 67.38% of the company's stock.

PennyMac Mortgage Investment Trust Price Performance

PMT stock opened at $9.46 on Tuesday. The firm has a market cap of $824.48 million, a P/E ratio of 6.66, a P/E/G ratio of 0.63 and a beta of 1.14. The firm's fifty day moving average is $10.19 and its 200 day moving average is $11.33. PennyMac Mortgage Investment Trust has a 52 week low of $9.05 and a 52 week high of $13.81. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.39 and a current ratio of 0.72.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.07). PennyMac Mortgage Investment Trust had a return on equity of 12.50% and a net margin of 47.79%.The business had revenue of ($46.00) million during the quarter, compared to the consensus estimate of $93.93 million. Research analysts predict that PennyMac Mortgage Investment Trust will post 1.12 earnings per share for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Thursday, July 9th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 16.9%. The ex-dividend date of this dividend was Thursday, July 9th. PennyMac Mortgage Investment Trust's payout ratio is presently 112.68%.

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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