PennyMac Mortgage Investment Trust (NYSE:PMT) Sets New 52-Week Low - Time to Sell?

Key Points

• Shares hit a new 52‑week low of $11.15 (last $11.145) on heavy volume; the stock trades below its 50‑ and 200‑day moving averages and has a market cap of about $974 million.
• Analysts are mixed—three Buy ratings vs. five Hold ratings—with a consensus rating of Hold and a consensus price target of $13.75, though firms like Keefe, Bruyette & Woods and Citi have recently upgraded the stock.
• The company announced a $0.40 quarterly dividend (a 14.3% yield) but carries a 163% payout ratio that may be unsustainable; it reported $0.48 EPS that beat estimates despite reporting revenue far below expectations, and analysts expect about 1.54 EPS for the year.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $11.15 and last traded at $11.1450, with a volume of 440674 shares trading hands. The stock had previously closed at $11.31.

Analysts Set New Price Targets

PMT has been the subject of a number of analyst reports. Keefe, Bruyette & Woods upgraded PennyMac Mortgage Investment Trust from a "market perform" rating to an "outperform" rating and set a $13.50 target price for the company in a report on Thursday, December 18th. Citigroup reissued an "outperform" rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, January 22nd. Citizens Jmp decreased their price objective 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. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PennyMac Mortgage Investment Trust in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $13.75.

PennyMac Mortgage Investment Trust Trading Down 1.0%

The company has a debt-to-equity ratio of 6.55, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market cap of $974.24 million, a price-to-earnings ratio of 11.42, a P/E/G ratio of 1.01 and a beta of 1.25. The company's fifty day moving average price is $12.30 and its 200-day moving average price is $12.42.

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

PennyMac Mortgage Investment Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Thursday, April 9th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 14.3%. The ex-dividend date is Thursday, April 9th. PennyMac Mortgage Investment Trust's payout ratio is presently 163.27%.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

Several hedge funds have recently made changes to their positions in PMT. Invesco Ltd. raised its stake in PennyMac Mortgage Investment Trust by 8.8% in the 3rd quarter. Invesco Ltd. now owns 2,204,584 shares of the real estate investment trust's stock worth $27,028,000 after acquiring an additional 178,834 shares during the last quarter. Geode Capital Management LLC grew its stake in PennyMac Mortgage Investment Trust by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 2,113,185 shares of the real estate investment trust's stock valued at $26,524,000 after purchasing an additional 11,764 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of PennyMac Mortgage Investment Trust by 7.0% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,501,206 shares of the real estate investment trust's stock valued at $18,405,000 after purchasing an additional 98,701 shares during the period. Millennium Management LLC increased its holdings in shares of PennyMac Mortgage Investment Trust by 41.8% in the third quarter. Millennium Management LLC now owns 1,339,158 shares of the real estate investment trust's stock valued at $16,418,000 after purchasing an additional 394,497 shares during the period. Finally, Boston Partners raised its stake in shares of PennyMac Mortgage Investment Trust by 20.9% in the second quarter. Boston Partners now owns 1,249,758 shares of the real estate investment trust's stock worth $15,873,000 after purchasing an additional 216,056 shares during the last quarter. 67.38% of the stock is owned by institutional investors and hedge funds.

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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