PennyMac Mortgage Investment Trust (NYSE:PMT) Sets New 1-Year Low After Earnings Miss

Key Points

• Shares hit a new 52-week low after the company reported quarterly EPS of $0.16 versus a consensus $0.36 and revenue of $82.29M versus $92.92M, pushing the stock as low as $10.91 (last $11.1050).
• The REIT pays a quarterly dividend of $0.40 (annualized $1.60) for a 14.2% yield, but its payout ratio is 163%, suggesting the dividend may be unsustainably high.
• Analysts' consensus rating is Hold with a $13.60 price target, and several firms have recently trimmed targets or issued neutral ratings.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) hit a new 52-week low on Wednesday following a dissappointing earnings announcement. The stock traded as low as $10.91 and last traded at $11.1050, with a volume of 1034252 shares. The stock had previously closed at $12.13.

The real estate investment trust reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.20). The firm had revenue of $82.29 million for the quarter, compared to analyst estimates 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 Announces Dividend

The business also recently declared 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. The ex-dividend date was Thursday, April 9th. This represents a $1.60 dividend on an annualized basis and a yield of 14.2%. PennyMac Mortgage Investment Trust's payout ratio is 163.27%.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on PMT shares. Piper Sandler cut their target price on PennyMac Mortgage Investment Trust from $13.50 to $13.00 and set a "neutral" rating on the stock 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. Citizens Jmp dropped their price objective on PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a "market outperform" rating on the stock in a research note on Thursday, January 22nd. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of PennyMac Mortgage Investment Trust in a research note on Friday, March 27th. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $13.60.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of PMT. Bessemer Group Inc. boosted its holdings in shares of PennyMac Mortgage Investment Trust by 142.1% during the first quarter. Bessemer Group Inc. now owns 2,189 shares of the real estate investment trust's stock worth $25,000 after purchasing an additional 1,285 shares during the period. Flagship Harbor Advisors LLC bought a new stake in shares of PennyMac Mortgage Investment Trust during the 4th quarter valued at $26,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of PennyMac Mortgage Investment Trust during the 4th quarter valued at $33,000. GAMMA Investing LLC grew its position in shares of PennyMac Mortgage Investment Trust by 102.8% during the 4th 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 period. Finally, Clearstead Advisors LLC grew its position in shares of PennyMac Mortgage Investment Trust by 184.3% during the 4th quarter. Clearstead Advisors LLC now owns 2,800 shares of the real estate investment trust's stock valued at $35,000 after acquiring an additional 1,815 shares during the period. 67.38% of the stock is owned by institutional investors.

PennyMac Mortgage Investment Trust Stock Performance

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 business's 50-day moving average price is $11.86 and its 200-day moving average price is $12.36. The stock has a market cap of $979.69 million, a P/E ratio of 11.47, a P/E/G ratio of 0.59 and a beta of 1.19.

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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