PennyMac Mortgage Investment Trust (NYSE:PMT) Sets New 1-Year Low - Time to Sell?

Key Points

• PennyMac Mortgage Investment Trust hit a new 52‑week low Monday, trading as low as $11.39 and last at $11.41, below its 50‑day ($12.65) and 200‑day ($12.49) moving averages.
• Analysts are mixed—three Buy and five Hold ratings result in a consensus rating of Hold with an average price target of $13.75, though some firms recently upgraded or adjusted targets.
• The REIT beat quarterly EPS estimates ($0.48 vs. $0.41) and pays a $0.40 quarterly dividend (about a 13.8% yield), but the dividend payout ratio is a high 163%, raising questions about sustainability.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) hit a new 52-week low on Monday . The company traded as low as $11.39 and last traded at $11.41, with a volume of 351462 shares changing hands. The stock had previously closed at $11.89.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on PMT shares. Keefe, Bruyette & Woods raised PennyMac Mortgage Investment Trust from a "market perform" rating to an "outperform" rating and set a $13.50 price target on the stock in a research report on Thursday, December 18th. Weiss Ratings restated a "hold (c-)" rating on shares of PennyMac Mortgage Investment Trust in a report on Monday, December 29th. Citigroup reaffirmed an "outperform" rating on shares of PennyMac Mortgage Investment Trust in a research note on Thursday, January 22nd. Finally, Citizens Jmp cut their target price on shares of PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a "market outperform" rating on the stock in a research report on Thursday, January 22nd. Three analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $13.75.

PennyMac Mortgage Investment Trust Price Performance

The firm has a market capitalization of $1.01 billion, a PE ratio of 11.85, a P/E/G ratio of 0.99 and a beta of 1.25. 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 fifty day moving average price of $12.65 and a 200-day moving average price of $12.49.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $0.48 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.07. PennyMac Mortgage Investment Trust had a return on equity of 9.53% and a net margin of 41.59%.The firm had revenue of $0.15 million during the quarter, compared to analysts' expectations of $96.96 million. Sell-side analysts forecast that PennyMac Mortgage Investment Trust will post 1.54 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, December 26th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 13.8%. The ex-dividend date was Friday, December 26th. PennyMac Mortgage Investment Trust's dividend payout ratio (DPR) is currently 163.27%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Tudor Investment Corp ET AL raised its position in shares of PennyMac Mortgage Investment Trust by 761.9% in the 4th quarter. Tudor Investment Corp ET AL now owns 99,546 shares of the real estate investment trust's stock valued at $1,249,000 after purchasing an additional 87,997 shares during the last quarter. Engineers Gate Manager LP purchased a new stake in PennyMac Mortgage Investment Trust during the 4th quarter worth approximately $187,000. Balyasny Asset Management L.P. increased its stake in PennyMac Mortgage Investment Trust by 28.4% during the 4th quarter. Balyasny Asset Management L.P. now owns 222,172 shares of the real estate investment trust's stock valued at $2,788,000 after purchasing an additional 49,151 shares in the last quarter. Guggenheim Capital LLC increased its stake in PennyMac Mortgage Investment Trust by 429.7% during the 4th quarter. Guggenheim Capital LLC now owns 102,860 shares of the real estate investment trust's stock valued at $1,291,000 after purchasing an additional 83,442 shares in the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of PennyMac Mortgage Investment Trust by 58.4% in the fourth quarter. AQR Capital Management LLC now owns 127,180 shares of the real estate investment trust's stock worth $1,596,000 after buying an additional 46,914 shares during the last quarter. Institutional investors own 67.38% of the company's stock.

About PennyMac Mortgage Investment Trust

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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