PennyMac Mortgage Investment Trust (NYSE:PMT) Sets New 12-Month Low - Time to Sell?

Key Points

• PennyMac Mortgage Investment Trust (NYSE: PMT) hit a new 52-week low, trading as low as $9.69 amid heavier volume, reflecting continued weakness in the stock.
• Recent analyst activity has turned more cautious, with multiple firms cutting ratings or price targets; the consensus remains Hold, but the average price target is still above the current share price at $12.80.
• The company recently reported Q1 earnings of $0.16 per share, well below estimates, while announcing a $0.40 quarterly dividend that implies a very high 16.5% yield.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $9.69 and last traded at $9.7250, with a volume of 1722927 shares trading hands. The stock had previously closed at $9.90.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on PMT shares. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and set a $12.00 target price (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a research note on Friday, May 8th. Wall Street Zen lowered PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Piper Sandler cut their price target on PennyMac Mortgage Investment Trust from $13.00 to $11.50 and set a "neutral" rating on the stock in a report on Tuesday, May 26th. Zacks Research cut PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 27th. Finally, Weiss Ratings downgraded shares of PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 21st. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $12.80.

PennyMac Mortgage Investment Trust Trading Down 1.8%

The business has a 50 day moving average of $10.35 and a two-hundred day moving average of $11.55. The firm has a market capitalization of $848.02 million, a price-to-earnings ratio of 8.46, a P/E/G ratio of 0.64 and a beta of 1.13. The company has a debt-to-equity ratio of 7.99, a quick ratio of 1.39 and a current ratio of 1.39.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.16 EPS for the quarter, missing analysts' consensus estimates of $0.36 by ($0.20). The firm had revenue of $233.25 million during the quarter, compared to analyst estimates of $92.92 million. PennyMac Mortgage Investment Trust had a net margin of 41.38% and a return on equity of 10.71%. Equities analysts predict that PennyMac Mortgage Investment Trust will post 1.16 EPS for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Thursday, July 9th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 16.5%. The ex-dividend date is Thursday, July 9th. PennyMac Mortgage Investment Trust's dividend payout ratio (DPR) is currently 139.13%.

Institutional Trading of PennyMac Mortgage Investment Trust

Hedge funds and other institutional investors have recently bought and sold shares of the business. Evergreen Capital Management LLC grew its position in shares of PennyMac Mortgage Investment Trust by 8.0% during the 4th quarter. Evergreen Capital Management LLC now owns 12,417 shares of the real estate investment trust's stock valued at $161,000 after purchasing an additional 915 shares in the last quarter. Collar Capital Management LLC raised its position in shares of PennyMac Mortgage Investment Trust by 1.2% in the fourth quarter. Collar Capital Management LLC now owns 90,615 shares of the real estate investment trust's stock worth $1,137,000 after buying an additional 1,100 shares in the last quarter. Wedbush Securities Inc. boosted its stake in PennyMac Mortgage Investment Trust by 1.3% during the fourth quarter. Wedbush Securities Inc. now owns 90,310 shares of the real estate investment trust's stock valued at $1,133,000 after buying an additional 1,125 shares during the period. Bessemer Group Inc. boosted its stake in 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 valued at $25,000 after buying an additional 1,285 shares during the period. Finally, GAMMA Investing LLC grew its position in PennyMac Mortgage Investment Trust by 102.8% during the fourth quarter. GAMMA Investing LLC now owns 2,752 shares of the real estate investment trust's stock worth $35,000 after buying an additional 1,395 shares in the last quarter. Institutional investors own 67.38% of the company's stock.

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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