PennyMac Mortgage Investment Trust (NYSE:PMT) Sets New 52-Week Low - What's Next?

Key Points

• PennyMac Mortgage Investment Trust shares fell to a new 52-week low of $6.83 during mid-day trading, with the stock last trading near $7.08.
• Analyst sentiment remains mixed but centers on a “Hold” consensus; the average price target is $11.33, despite several recent target-price cuts.
• The company reported weaker-than-expected quarterly results, while its $0.40 quarterly dividend implies a 22.6% annualized yield and a payout ratio above 100%, potentially raising sustainability concerns.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $6.83 and last traded at $7.0760, with a volume of 4,956,609 shares changing hands. The stock had previously closed at $7.05.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on PMT shares. Piper Sandler cut their target price on shares of PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a "neutral" rating for the company in a research report on Friday. Wells Fargo & Company reduced their target price 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 note on Friday, July 31st. 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 report on Saturday, August 15th. UBS Group dropped their price target 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. Finally, Weiss Ratings cut shares of PennyMac Mortgage Investment Trust from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, October 8th. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, PennyMac Mortgage Investment Trust currently has a consensus rating of "Hold" and a consensus price target of $11.33.

PennyMac Mortgage Investment Trust Stock Up 0.4%

The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 9.18. The firm has a market cap of $617.03 million, a PE ratio of 4.96, a price-to-earnings-growth ratio of 0.52 and a beta of 1.20. The stock has a fifty day simple moving average of $8.90 and a two-hundred day simple moving average of $10.09.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.07). PennyMac Mortgage Investment Trust had a net margin of 47.79% and a return on equity of 12.50%. The company had revenue of ($46.00) million for the quarter, compared to the consensus estimate of $93.93 million. As a group, sell-side analysts expect that PennyMac Mortgage Investment Trust will post 1.03 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Thursday, October 8th will be paid 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 yield of 22.6%. PennyMac Mortgage Investment Trust's payout ratio is currently 112.68%.

Institutional Trading of PennyMac Mortgage Investment Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of PMT. GAMMA Investing LLC lifted its stake in PennyMac Mortgage Investment Trust by 77.2% in the 3rd quarter. GAMMA Investing LLC now owns 12,348 shares of the real estate investment trust's stock worth $97,000 after purchasing an additional 5,379 shares in the last quarter. Squarepoint Ops LLC bought a new position in PennyMac Mortgage Investment Trust in the 2nd quarter valued at $432,000. Nykredit A S purchased a new position in shares of PennyMac Mortgage Investment Trust during the 2nd quarter valued at $37,000. Corient Private Wealth LP purchased a new position in shares of PennyMac Mortgage Investment Trust during the 2nd quarter valued at $1,747,000. Finally, Wedbush Securities Inc. grew its position in shares of PennyMac Mortgage Investment Trust by 1.6% during the 2nd quarter. Wedbush Securities Inc. now owns 92,059 shares of the real estate investment trust's stock valued at $1,038,000 after purchasing an additional 1,469 shares in the last quarter. Institutional investors 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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