PennyMac Mortgage Investment Trust (NYSE:PMT) Stock Falls 4.4% - Time to Sell?

Key Points

• PMT fell 4.4% to $7.525, with trading volume 73% below its average.
• Analyst views are mixed, but the consensus rating is Hold with a $10.75 target price; the stock has three Buy, five Hold, and one Sell rating.
• The REIT beat quarterly EPS estimates ($0.35 versus $0.30), but its $0.40 quarterly dividend equates to a 21.3% yield and a payout ratio of 347.83%.

PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) fell 4.4% during trading on Wednesday. The company traded as low as $7.48 and last traded at $7.5250. 423,443 shares were traded during mid-day trading, a decline of 73% from the average session volume of 1,549,223 shares. The stock had previously closed at $7.87.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on PMT. Weiss Ratings lowered PennyMac Mortgage Investment Trust from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft raised 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. Citigroup reaffirmed a "market outperform" rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, October 15th. Wells Fargo & Company lowered their target price on PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Wednesday, November 4th. Finally, UBS Group dropped their target price on 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, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $10.75.

PennyMac Mortgage Investment Trust Price Performance

The company has a market cap of $653.56 million, a price-to-earnings ratio of 16.32, a PEG ratio of 1.52 and a beta of 1.21. The company's 50 day moving average price is $8.08 and its 200 day moving average price is $10.26. The company has a current ratio of 1.60, a quick ratio of 1.60 and a debt-to-equity ratio of 11.14.

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 (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.05. The business had revenue of $36.24 million for the quarter, compared to analyst estimates of $95.01 million. PennyMac Mortgage Investment Trust had a net margin of 29.15% and a return on equity of 11.41%. Equities research analysts forecast that PennyMac Mortgage Investment Trust will post 0.31 earnings per share for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Thursday, October 8th were given a dividend of $0.40 per share. The ex-dividend date was Thursday, October 8th. This represents a $1.60 annualized dividend and a yield of 21.3%. PennyMac Mortgage Investment Trust's payout ratio is presently 347.83%.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

Large investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in PennyMac Mortgage Investment Trust in the second quarter worth $164,344,000. Boston Partners boosted its position in shares of PennyMac Mortgage Investment Trust by 2.9% during the 3rd quarter. Boston Partners now owns 1,425,140 shares of the real estate investment trust's stock worth $11,266,000 after purchasing an additional 40,615 shares in the last quarter. Royal Bank of Canada boosted its position in shares of 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. Beach Point Capital Management LP purchased a new stake in shares of PennyMac Mortgage Investment Trust during the 3rd quarter worth $6,702,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of PennyMac Mortgage Investment Trust during the 2nd quarter worth $6,137,000. 67.38% of the stock is owned by hedge funds and other institutional investors.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust focused on the U.S. residential mortgage market. The company invests in mortgage-related assets, including mortgage loans and mortgage-backed securities, and seeks to generate returns from its investment portfolio. Its activities include acquiring and managing loans and securities across different parts of the mortgage market. These investments expose the trust to factors such as borrower credit performance, interest rates and changes in mortgage prepayment activity.

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