PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• PennyMac Mortgage Investment Trust's share price rose from $11.70 to $12.43 after reporting **earnings per share of $0.55**, significantly beating estimates of $0.36.
• The company declared a **quarterly dividend of $0.40 per share**, representing a **12.8% annualized yield**, with a payout ratio of 222.22%.
• Research analysts have mixed ratings for the stock, with **one buy**, five holds, and two sells, while the average price target is set at **$14.00**.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $11.70, but opened at $12.43. PennyMac Mortgage Investment Trust shares last traded at $12.50, with a volume of 646,771 shares.

The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.19. PennyMac Mortgage Investment Trust had a return on equity of 7.68% and a net margin of 34.65%.The firm had revenue of $99.23 million during the quarter, compared to the consensus estimate of $97.91 million.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Friday, October 10th will be given a dividend of $0.40 per share. The ex-dividend date is Friday, October 10th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 12.8%. PennyMac Mortgage Investment Trust's payout ratio is presently 222.22%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on PMT shares. Wells Fargo & Company assumed coverage on PennyMac Mortgage Investment Trust in a report on Monday, August 25th. They issued an "equal weight" rating and a $13.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of PennyMac Mortgage Investment Trust in a research report on Wednesday, October 8th. Zacks Research cut PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a research report on Monday, September 22nd. Finally, Keefe, Bruyette & Woods lowered PennyMac Mortgage Investment Trust from an "outperform" rating to a "market perform" rating and dropped their target price for the stock from $14.50 to $13.50 in a report on Friday, July 25th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, PennyMac Mortgage Investment Trust currently has an average rating of "Reduce" and a consensus price target of $14.00.

Insider Transactions at PennyMac Mortgage Investment Trust

In other PennyMac Mortgage Investment Trust news, Director Catherine A. Lynch bought 2,823 shares of PennyMac Mortgage Investment Trust stock in a transaction on Monday, September 22nd. The shares were purchased at an average price of $12.02 per share, with a total value of $33,932.46. Following the acquisition, the director owned 54,711 shares in the company, valued at $657,626.22. This trade represents a 5.44% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.92% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

A number of large investors have recently modified their holdings of the business. Signaturefd LLC lifted its stake in shares of PennyMac Mortgage Investment Trust by 53.8% in the 2nd quarter. Signaturefd LLC now owns 2,486 shares of the real estate investment trust's stock valued at $32,000 after acquiring an additional 870 shares during the last quarter. CWM LLC lifted its stake in shares of PennyMac Mortgage Investment Trust by 57.7% in the 3rd quarter. CWM LLC now owns 2,943 shares of the real estate investment trust's stock valued at $36,000 after acquiring an additional 1,077 shares during the last quarter. Maridea Wealth Management LLC lifted its stake in shares of PennyMac Mortgage Investment Trust by 2.7% in the 2nd quarter. Maridea Wealth Management LLC now owns 41,578 shares of the real estate investment trust's stock valued at $535,000 after acquiring an additional 1,085 shares during the last quarter. J.W. Cole Advisors Inc. lifted its stake in shares of PennyMac Mortgage Investment Trust by 10.0% in the 2nd quarter. J.W. Cole Advisors Inc. now owns 14,540 shares of the real estate investment trust's stock valued at $187,000 after acquiring an additional 1,316 shares during the last quarter. Finally, Motiv8 Investments LLC lifted its stake in shares of PennyMac Mortgage Investment Trust by 13.1% in the 1st quarter. Motiv8 Investments LLC now owns 11,547 shares of the real estate investment trust's stock valued at $169,000 after acquiring an additional 1,333 shares during the last quarter. Institutional investors and hedge funds own 67.38% of the company's stock.

PennyMac Mortgage Investment Trust Stock Up 6.7%

The company has a market capitalization of $1.09 billion, a P/E ratio of 17.34, a PEG ratio of 2.89 and a beta of 1.29. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 3.82. The stock has a 50 day moving average price of $12.19 and a 200 day moving average price of $12.47.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate.

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