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

Key Points

• PennyMac Mortgage Investment Trust shares fell to a new 52-week low of $8.17, well below their 50-day and 200-day moving averages. Analysts maintain a consensus “Hold” rating with an average price target of $11.50.
• The company reported quarterly earnings of $0.23 per share, missing the $0.30 consensus estimate, while revenue was negative $46 million versus expectations of $93.93 million.
• PMT declared a quarterly dividend of $0.40, implying a 19.7% annualized yield, but its 112.68% payout ratio raises potential sustainability concerns. Institutional investors own 67.38% of the stock.

Shares of PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) hit a new 52-week low on Monday. The stock traded as low as $8.17 and last traded at $8.2330, with a volume of 59898 shares changing hands. The stock had previously closed at $8.33.

Analyst Ratings Changes

A number of brokerages have commented on PMT. Wells Fargo & Company decreased their price target on PennyMac Mortgage Investment Trust from $12.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft raised PennyMac Mortgage Investment Trust from a "hold" rating to a "buy" rating and set a $12.00 price objective for the company in a research note on Saturday, August 15th. UBS Group decreased their target price on shares of PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a "neutral" rating on the stock in a research note on Friday, August 21st. Piper Sandler lowered their price target on shares of PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of PennyMac Mortgage Investment Trust in a report on Tuesday, August 18th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $11.50.

PennyMac Mortgage Investment Trust Price Performance

The business has a 50-day simple moving average of $9.36 and a 200 day simple moving average of $10.42. The firm has a market cap of $709.37 million, a P/E ratio of 5.74, a price-to-earnings-growth ratio of 0.62 and a beta of 1.14. The company has a debt-to-equity ratio of 9.18, a quick ratio of 1.46 and a current ratio of 1.46.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The real estate investment trust reported $0.23 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.07). PennyMac Mortgage Investment Trust had a return on equity of 12.50% and a net margin of 47.79%.The business had revenue of ($46.00) million during the quarter, compared to the consensus estimate of $93.93 million. On average, analysts anticipate that PennyMac Mortgage Investment Trust will post 1.03 earnings per share for the current fiscal year.

PennyMac Mortgage Investment Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Thursday, October 8th will be issued a $0.40 dividend. The ex-dividend date is Thursday, October 8th. This represents a $1.60 annualized dividend and a yield of 19.7%. PennyMac Mortgage Investment Trust's payout ratio is 112.68%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC bought a new stake in shares of PennyMac Mortgage Investment Trust during the 2nd quarter valued at about $432,000. Nykredit A S bought a new position in PennyMac Mortgage Investment Trust in the second quarter worth about $37,000. Corient Private Wealth LP bought a new position in PennyMac Mortgage Investment Trust in the second quarter worth about $1,747,000. Wedbush Securities Inc. lifted its holdings in PennyMac Mortgage Investment Trust by 1.6% in the second quarter. Wedbush Securities Inc. now owns 92,059 shares of the real estate investment trust's stock worth $1,038,000 after buying an additional 1,469 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in PennyMac Mortgage Investment Trust by 967.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 160,070 shares of the real estate investment trust's stock worth $1,806,000 after buying an additional 145,076 shares during the period. 67.38% of the stock is currently owned by institutional investors.

About PennyMac Mortgage Investment Trust

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