PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Gap Down - Here's Why

Key Points

• PennyMac Mortgage Investment Trust shares gapped down before trading, opening at $10.03 after closing at $10.45, and were last down about 2.7% intraday.
• Analyst sentiment remains cautious after multiple firms cut price targets and ratings, leaving PMT with a consensus "Hold" rating and a $12.80 average price target.
• Recent earnings missed estimates, with PMT reporting $0.16 EPS versus the expected $0.36, even though revenue came in well above forecasts.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $10.45, but opened at $10.03. PennyMac Mortgage Investment Trust shares last traded at $10.1260, with a volume of 144,246 shares.

Analyst Ratings Changes

PMT has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and set a $12.00 price objective (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a research report on Friday, May 8th. Piper Sandler cut their target price on PennyMac Mortgage Investment Trust from $13.00 to $11.50 and set a "neutral" rating on the stock in a research report on Tuesday, May 26th. Wells Fargo & Company decreased their price target on PennyMac Mortgage Investment Trust from $13.00 to $12.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 7th. Weiss Ratings lowered PennyMac Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 21st. Finally, Zacks Research cut PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 27th. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $12.80.

PennyMac Mortgage Investment Trust Trading Down 2.7%

The company has a debt-to-equity ratio of 7.99, a quick ratio of 1.39 and a current ratio of 1.39. The company's 50-day moving average price is $10.59 and its 200-day moving average price is $11.71. The firm has a market capitalization of $886.39 million, a PE ratio of 8.84, a PEG ratio of 0.68 and a beta of 1.13.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last posted its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.16 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.20). PennyMac Mortgage Investment Trust had a net margin of 41.38% and a return on equity of 10.71%. The business had revenue of $233.25 million during the quarter, compared to analysts' expectations of $92.92 million. On average, sell-side analysts expect that PennyMac Mortgage Investment Trust will post 1.16 earnings per share for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Thursday, July 9th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 15.7%. The ex-dividend date of this dividend is Thursday, July 9th. PennyMac Mortgage Investment Trust's dividend payout ratio is currently 139.13%.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

Hedge funds and other institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC boosted its holdings in PennyMac Mortgage Investment Trust by 36.7% in the first quarter. AQR Capital Management LLC now owns 16,155 shares of the real estate investment trust's stock valued at $237,000 after purchasing an additional 4,335 shares in the last quarter. Jane Street Group LLC acquired a new stake in PennyMac Mortgage Investment Trust during the first quarter worth approximately $4,166,000. Intech Investment Management LLC raised its holdings in PennyMac Mortgage Investment Trust by 1.3% during the first quarter. Intech Investment Management LLC now owns 109,272 shares of the real estate investment trust's stock worth $1,601,000 after purchasing an additional 1,411 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of PennyMac Mortgage Investment Trust by 4.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 441,547 shares of the real estate investment trust's stock worth $5,678,000 after buying an additional 19,389 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its position in shares of PennyMac Mortgage Investment Trust by 49.0% during the 2nd quarter. Russell Investments Group Ltd. now owns 4,861 shares of the real estate investment trust's stock worth $63,000 after buying an additional 1,599 shares during the last quarter. Institutional investors and hedge funds 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.

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.