PennyMac Mortgage Investment Trust (NYSE:PMT) Share Price Breaks Above 50-Day Moving Average - Time to Sell?

Key Points

• PMT shares rose 4.5% and moved above their 50-day moving average of $8.19, trading around $8.24; the 200-day average was notably higher at $10.37.
• Analyst opinion is mixed but averages to Hold: three Buy, five Hold, and one Sell ratings, with an average price target of $10.75. Several analysts recently lowered their targets.
• The latest quarterly EPS of $0.35 beat the $0.30 estimate, while revenue of $36.24 million fell short of the $95.01 million consensus. PMT’s annualized dividend yield is 19.4%, with a payout ratio above 100%.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report)'s share price passed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $8.19 and traded as high as $8.34. PennyMac Mortgage Investment Trust shares last traded at $8.2440, with a volume of 3,427,244 shares.

Wall Street Analysts Forecast Growth

PMT has been the topic of a number of research analyst reports. Zacks Research upgraded shares of PennyMac Mortgage Investment Trust from a "strong sell" rating to a "hold" rating in a research note on Friday, October 16th. Citigroup reissued a "market outperform" rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, October 15th. Wells Fargo & Company decreased their price target on shares of PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set an "equal weight" rating for the company in a report on Wednesday. UBS Group lowered their price target on PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a "neutral" rating on the stock in a research report on Friday, August 21st. Finally, Citizens Jmp dropped their price objective on PennyMac Mortgage Investment Trust from $15.00 to $12.50 and set a "market outperform" rating on the stock in a research note on Thursday, October 15th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, PennyMac Mortgage Investment Trust has an average rating of "Hold" and an average target price of $10.75.

PennyMac Mortgage Investment Trust Stock Up 4.5%

The company has a quick ratio of 1.46, a current ratio of 0.73 and a debt-to-equity ratio of 0.55. The company has a market capitalization of $718.88 million, a P/E ratio of 17.92, a PEG ratio of 0.68 and a beta of 1.21. The firm has a 50-day moving average price of $8.19 and a two-hundred day moving average price of $10.37.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.05. The business had revenue of $36.24 million for the quarter, compared to the consensus estimate of $95.01 million. PennyMac Mortgage Investment Trust had a net margin of 29.15% and a return on equity of 11.40%. Equities research analysts anticipate that PennyMac Mortgage Investment Trust will post 0.67 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Thursday, October 8th were given a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 19.4%. The ex-dividend date was Thursday, October 8th. PennyMac Mortgage Investment Trust's dividend payout ratio (DPR) is currently 347.83%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LP bought a new stake in shares of PennyMac Mortgage Investment Trust during the second quarter valued at approximately $1,651,000. Beach Point Capital Management LP bought a new position in PennyMac Mortgage Investment Trust in the third quarter worth $6,702,000. Bank of America Corp DE bought a new stake in PennyMac Mortgage Investment Trust in the 2nd quarter valued at $4,549,000. Bank of New York Mellon Corp bought a new stake in PennyMac Mortgage Investment Trust in the 2nd quarter valued at $6,137,000. Finally, Royal Bank of Canada raised its stake in shares of PennyMac Mortgage Investment Trust by 1,469.4% in the 1st quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock valued at $7,488,000 after buying an additional 601,233 shares in 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 loans and mortgage-related assets. The company seeks to generate income through investments tied to the U.S. residential mortgage market, including credit-sensitive and interest-rate-sensitive assets.

PMT's business activities include acquiring and managing mortgage loans, mortgage-backed securities and related investments. Through its correspondent production strategy, the trust invests in newly originated residential mortgage loans purchased from correspondent lenders.

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