PennyMac Mortgage Investment Trust (NYSE:PMT) Reaches New 12-Month Low - What's Next?

Key Points

• PennyMac Mortgage Investment Trust shares fell to a new 52-week low of $7.46, well below their 50-day and 200-day moving averages of $9.07 and $10.21, respectively.
• Analyst sentiment is mixed but leans toward caution: PMT has an overall “Hold” consensus rating and an $11.50 average price target, while recent firms lowered targets to $10.00; the latest quarter also missed earnings and revenue expectations.
• The company declared a quarterly dividend of $0.40 per share, equal to a 21.3% annualized yield, though its 112.68% payout ratio exceeds reported earnings.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) shares hit a new 52-week low during trading on Thursday. The stock traded as low as $7.46 and last traded at $7.4540, with a volume of 11729 shares changing hands. The stock had previously closed at $7.90.

Wall Street Analysts Forecast Growth

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

PennyMac Mortgage Investment Trust Stock Performance

The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 9.18. The firm has a 50-day moving average price of $9.07 and a two-hundred day moving average price of $10.21. The firm has a market cap of $654.09 million, a PE ratio of 5.31, a P/E/G ratio of 0.60 and a beta of 1.20.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $0.23 EPS for the quarter, missing the consensus estimate 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 firm had revenue of ($46.00) million for the quarter, compared to analysts' expectations of $93.93 million. Research analysts forecast that PennyMac Mortgage Investment Trust will post 1.03 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently declared 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. This represents a $1.60 annualized dividend and a dividend yield of 21.3%. The ex-dividend date is Thursday, October 8th. PennyMac Mortgage Investment Trust's dividend payout ratio (DPR) is currently 112.68%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in PMT. Bessemer Group Inc. raised its stake in shares of PennyMac Mortgage Investment Trust by 142.1% in the first quarter. Bessemer Group Inc. now owns 2,189 shares of the real estate investment trust's stock valued at $25,000 after acquiring an additional 1,285 shares in the last quarter. Allworth Financial LP acquired a new position in PennyMac Mortgage Investment Trust during the 2nd quarter worth $33,000. Nykredit A S acquired a new position in PennyMac Mortgage Investment Trust during the 2nd quarter worth $37,000. Public Employees Retirement System of Ohio purchased a new stake in PennyMac Mortgage Investment Trust during the 2nd quarter worth about $38,000. Finally, State of Wyoming purchased a new stake in PennyMac Mortgage Investment Trust during the 1st quarter worth about $67,000. 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 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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