PennyMac Mortgage Investment Trust (NYSE:PMT) Reaches New 1-Year Low - Should You Sell?

Key Points

• PennyMac Mortgage Investment Trust shares fell to a new 52-week low of $6.70, trading well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $10.92; recent targets range from $9 to $12.
• The company reported quarterly earnings and revenue below estimates but announced a $0.40 quarterly dividend, equating to a 23.7% annualized yield and a payout ratio above 100%.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $6.70 and last traded at $6.7490, with a volume of 3,128,133 shares traded. The stock had previously closed at $6.92.

Analysts Set New Price Targets

Several analysts have recently weighed in on PMT shares. Deutsche Bank Aktiengesellschaft upgraded shares of 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. Piper Sandler cut their target price on shares of PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a "neutral" rating on the stock in a research note on Friday, October 9th. Wells Fargo & Company reduced their price target on shares of PennyMac Mortgage Investment Trust from $12.00 to $10.00 and set an "equal weight" rating for the company in a report on Friday, July 31st. UBS Group decreased their price target on shares of PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a "neutral" rating for the company in a research note on Friday, August 21st. Finally, Weiss Ratings lowered shares of PennyMac Mortgage Investment Trust from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, October 8th. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, PennyMac Mortgage Investment Trust presently has an average rating of "Hold" and an average target price of $10.92.

PennyMac Mortgage Investment Trust Stock Down 2.5%

The company has a debt-to-equity ratio of 9.18, a quick ratio of 1.46 and a current ratio of 1.46. The stock's 50 day simple moving average is $8.69 and its 200 day simple moving average is $9.97. The firm has a market cap of $588.51 million, a P/E ratio of 4.87, a price-to-earnings-growth ratio of 0.39 and a beta of 1.20.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last released 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). The business had revenue of ($46.00) million during the quarter, compared to the consensus estimate of $93.93 million. PennyMac Mortgage Investment Trust had a net margin of 47.79% and a return on equity of 12.50%. Research analysts anticipate that PennyMac Mortgage Investment Trust will post 1.03 EPS for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Thursday, October 8th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, October 8th. This represents a $1.60 annualized dividend and a dividend yield of 23.7%. PennyMac Mortgage Investment Trust's payout ratio is presently 112.68%.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

Several large investors have recently added to or reduced their stakes in PMT. BlackRock Inc. acquired a new position in PennyMac Mortgage Investment Trust during the 2nd quarter valued at about $164,344,000. Royal Bank of Canada increased its holdings in PennyMac Mortgage Investment Trust by 1,469.4% during the 1st quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock worth $7,488,000 after purchasing an additional 601,233 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of PennyMac Mortgage Investment Trust in the second quarter worth approximately $6,137,000. Principal Financial Group Inc. raised its stake in shares of PennyMac Mortgage Investment Trust by 2.0% in the first quarter. Principal Financial Group Inc. now owns 422,973 shares of the real estate investment trust's stock worth $4,932,000 after purchasing an additional 8,234 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in shares of PennyMac Mortgage Investment Trust by 154.1% in the first quarter. Bank of America Corp DE now owns 412,512 shares of the real estate investment trust's stock worth $4,810,000 after purchasing an additional 250,160 shares during the last quarter. Institutional investors own 67.38% of the company's stock.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust NYSE: PMT is a mortgage real estate investment trust that invests primarily in residential mortgage-related assets. The company seeks to generate income through investments in mortgage loans, mortgage servicing rights, mortgage-backed securities and other credit-sensitive assets tied to the U.S. housing market.

PennyMac's activities include acquiring and managing newly originated and seasoned residential mortgage loans, investing in mortgage servicing rights and related financing arrangements, and participating in correspondent production activities.

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