PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Climb 8.5% - Time to Buy?

Key Points

• PennyMac Mortgage Investment Trust shares rose 8.5% to about $8.11, with trading volume 42% above its average.
• Analysts maintain a mixed outlook: the consensus rating is “Hold”, with a $10.92 average price target after several firms recently reduced their targets.
• The company exceeded quarterly EPS expectations ($0.35 versus $0.30) and paid a $0.40 quarterly dividend, equating to an unusually high 19.9% annualized yield and a 347.83% payout ratio.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) was up 8.5% during mid-day trading on Monday. The company traded as high as $8.13 and last traded at $8.1050. 2,148,492 shares changed hands during trading, an increase of 42% from the average daily volume of 1,512,630 shares. The stock had previously closed at $7.47.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Citizens Jmp decreased their price objective on shares of PennyMac Mortgage Investment Trust from $15.00 to $12.50 and set a "market outperform" rating for the company in a report on Thursday, October 15th. Citigroup restated a "market outperform" rating on shares of PennyMac Mortgage Investment Trust in a report on Thursday, October 15th. UBS Group cut their target price on shares of PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a "neutral" rating for the company in a research report on Friday, August 21st. Wells Fargo & Company decreased 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. Finally, Piper Sandler lowered their price target on PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a "neutral" rating on the stock in a report on Friday, October 9th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $10.92.

PennyMac Mortgage Investment Trust Trading Up 7.4%

The firm has a market capitalization of $699.80 million, a PE ratio of 17.45, a PEG ratio of 0.42 and a beta of 1.20. 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 stock's fifty day simple moving average is $8.26 and its 200 day simple moving average is $10.45.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.05. PennyMac Mortgage Investment Trust had a net margin of 29.15% and a return on equity of 11.40%. The business had revenue of $31.00 million for the quarter, compared to analysts' expectations of $95.01 million. On average, sell-side analysts predict that PennyMac Mortgage Investment Trust will post 1.03 earnings per share for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Thursday, October 8th were paid a dividend of $0.40 per share. The ex-dividend date was Thursday, October 8th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 19.9%. PennyMac Mortgage Investment Trust's payout ratio is 347.83%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of PennyMac Mortgage Investment Trust during the 2nd quarter valued at about $164,344,000. Beach Point Capital Management LP bought a new stake in PennyMac Mortgage Investment Trust during the third quarter worth approximately $6,702,000. Royal Bank of Canada increased its stake in PennyMac Mortgage Investment Trust by 1,469.4% during the first quarter. Royal Bank of Canada now owns 642,149 shares of the real estate investment trust's stock worth $7,488,000 after acquiring an additional 601,233 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in PennyMac Mortgage Investment Trust during the second quarter valued at approximately $6,137,000. Finally, Bank of America Corp DE purchased a new stake in PennyMac Mortgage Investment Trust during the second quarter valued at approximately $4,549,000. 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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