PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down to about $11.58 from $12.00 before trading (volume ~204,486), leaving the stock below its 50‑day ($11.99) and 200‑day ($12.39) moving averages.
• Analysts have a consensus rating of "Hold" with an average target price of $13.60 (three Buys vs. six Holds), and several firms recently trimmed price targets.
• PennyMac declared a quarterly dividend of $0.40 ($1.60 annual), implying a 13.7% yield

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $12.00, but opened at $11.53. PennyMac Mortgage Investment Trust shares last traded at $11.5850, with a volume of 204,486 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on PMT. Piper Sandler decreased their price objective on shares of PennyMac Mortgage Investment Trust from $13.50 to $13.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Weiss Ratings reiterated a "hold (c-)" rating on shares of PennyMac Mortgage Investment Trust in a research report on Friday, March 27th. Citizens Jmp decreased their price objective on shares of PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a "market outperform" rating for the company in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods upgraded shares of PennyMac Mortgage Investment Trust from a "market perform" rating to an "outperform" rating and set a $13.50 price objective for the company in a research report on Thursday, December 18th. Finally, Citigroup reiterated an "outperform" rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, January 22nd. Three analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, PennyMac Mortgage Investment Trust has a consensus rating of "Hold" and an average target price of $13.60.

PennyMac Mortgage Investment Trust Stock Down 2.8%

The firm has a market cap of $1.02 billion, a PE ratio of 11.90, a PEG ratio of 0.58 and a beta of 1.24. The business's 50 day moving average price is $11.99 and its 200 day moving average price is $12.39. The company has a debt-to-equity ratio of 6.55, a current ratio of 1.12 and a quick ratio of 1.12.

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 business 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, equities research analysts expect that PennyMac Mortgage Investment Trust will post 1.54 earnings per share for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Investors 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 yield of 13.7%. The ex-dividend date of this dividend is Thursday, April 9th. PennyMac Mortgage Investment Trust's dividend payout ratio is currently 163.27%.

Institutional Trading of PennyMac Mortgage Investment Trust

Several large investors have recently bought and sold shares of PMT. Nuveen LLC grew its stake in PennyMac Mortgage Investment Trust by 350.3% during the 4th quarter. Nuveen LLC now owns 927,864 shares of the real estate investment trust's stock valued at $11,645,000 after acquiring an additional 721,790 shares in the last quarter. JPMorgan Chase & Co. grew its stake in PennyMac Mortgage Investment Trust by 149.1% during the 4th quarter. JPMorgan Chase & Co. now owns 873,470 shares of the real estate investment trust's stock valued at $10,962,000 after acquiring an additional 522,839 shares in the last quarter. SG Americas Securities LLC grew its stake in PennyMac Mortgage Investment Trust by 1,586.5% during the 4th quarter. SG Americas Securities LLC now owns 526,950 shares of the real estate investment trust's stock valued at $6,613,000 after acquiring an additional 495,704 shares in the last quarter. Barclays PLC grew its stake in PennyMac Mortgage Investment Trust by 93.2% during the 3rd quarter. Barclays PLC now owns 992,581 shares of the real estate investment trust's stock valued at $12,169,000 after acquiring an additional 478,947 shares in the last quarter. Finally, Millennium Management LLC grew its stake in PennyMac Mortgage Investment Trust by 41.8% during the 3rd quarter. Millennium Management LLC now owns 1,339,158 shares of the real estate investment trust's stock valued at $16,418,000 after acquiring an additional 394,497 shares in the last quarter. Hedge funds and other 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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