PennyMac Mortgage Investment Trust (NYSE:PMT) Releases Earnings Results

Key Points

• PennyMac missed expectations: Q earnings were $0.16 per share versus a $0.36 consensus and revenue was $82.3M versus $92.9M, while the company reported a net margin of 41.6% and ROE of 9.5%.
• Generous but potentially unsustainable dividend: The REIT paid a $0.40 quarterly dividend (annualized $1.60) for a 13.2% yield, yet its payout ratio is a high 163.3%, signalling risk to future distributions.
• Market and analyst positioning: Shares traded around $12.15 with a $1.06B market cap and a P/E of 12.4; analysts hold a consensus "Hold" with a $13.60 target and institutional ownership is about 67%.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) released its quarterly earnings data on Tuesday. The real estate investment trust reported $0.16 earnings per share for the quarter, missing analysts' consensus estimates of $0.36 by ($0.20), FiscalAI reports. The company had revenue of $82.29 million for the quarter, compared to analysts' expectations of $92.92 million. PennyMac Mortgage Investment Trust had a net margin of 41.59% and a return on equity of 9.53%.

PennyMac Mortgage Investment Trust Price Performance

NYSE:PMT traded up $0.04 during trading hours on Tuesday, hitting $12.15. 612,322 shares of the stock were exchanged, compared to its average volume of 1,173,886. PennyMac Mortgage Investment Trust has a 52-week low of $11.15 and a 52-week high of $13.81. The firm's fifty day moving average price is $11.87 and its 200 day moving average price is $12.36. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 6.55. The company has a market cap of $1.06 billion, a P/E ratio of 12.40, a P/E/G ratio of 0.60 and a beta of 1.19.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 24th. Shareholders of record on Thursday, April 9th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 13.2%. The ex-dividend date was Thursday, April 9th. PennyMac Mortgage Investment Trust's payout ratio is 163.27%.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

Large investors have recently bought and sold shares of the company. BNP Paribas Financial Markets increased its stake in PennyMac Mortgage Investment Trust by 197.9% during the 2nd quarter. BNP Paribas Financial Markets now owns 30,655 shares of the real estate investment trust's stock worth $394,000 after buying an additional 20,366 shares in the last quarter. Advocate Investing Services LLC acquired a new stake in shares of PennyMac Mortgage Investment Trust in the fourth quarter valued at approximately $358,000. Ausdal Financial Partners Inc. increased its holdings in shares of PennyMac Mortgage Investment Trust by 82.6% in the fourth quarter. Ausdal Financial Partners Inc. now owns 24,656 shares of the real estate investment trust's stock valued at $309,000 after purchasing an additional 11,155 shares during the last quarter. EP Wealth Advisors LLC purchased a new position in PennyMac Mortgage Investment Trust during the second quarter worth approximately $277,000. Finally, AQR Capital Management LLC boosted its stake in 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 worth $237,000 after buying an additional 4,335 shares during the last quarter. 67.38% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Piper Sandler reduced their price objective on PennyMac Mortgage Investment Trust from $13.50 to $13.00 and set a "neutral" rating for the company in a research note on Thursday, April 2nd. Citigroup reiterated an "outperform" rating on shares of PennyMac Mortgage Investment Trust in a research note on Thursday, January 22nd. Weiss Ratings reiterated a "hold (c-)" rating on shares of PennyMac Mortgage Investment Trust in a research note on Friday, March 27th. Finally, Citizens Jmp cut their price target on PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a "market outperform" rating for the company in a research note on Thursday, January 22nd. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $13.60.

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.