Shares of PennyMac Mortgage Investment Trust (NYSE:PMT) have garnered a consensus rating of “Hold” from analysts covering the firm, according to MarketBeat Ratings. The assessment comes from seven brokerage firms, with five analysts suggesting a hold position while two have issued buy ratings. The average 12-month target price for the stock stands at $13.8750, reflecting a cautious outlook among financial experts.
Several recent evaluations from analysts provide further insight into the stock’s prospects. On October 24, UBS Group raised its target price for PennyMac from $13.00 to $13.50, assigning a “neutral” rating in the process. Earlier, on October 21, Zacks Research upgraded the stock from a “strong sell” to a “hold” rating. In a more optimistic move, Keefe, Bruyette & Woods improved its rating from “market perform” to “outperform,” setting a target price of $13.50 on December 18. Additionally, Weiss Ratings reaffirmed a “hold (c-)” rating in a report issued on Monday.
Investor Activity and Market Performance
Recent trading activity indicates increased interest from institutional investors in PennyMac Mortgage Investment Trust. Notably, Nuveen LLC established a new position in the company in the first quarter valued at approximately $3.7 million. Russell Investments Group Ltd. significantly lifted its stake by 196.5% during the same period, now holding 3,262 shares worth around $48,000 after acquiring an additional 2,162 shares. Other notable investments include Jump Financial LLC, which also entered a new position valued at about $1.38 million, and Samalin Investment Counsel LLC, which increased its holdings by 22.8%, now owning 16,678 shares valued at $244,000.
Currently, institutional investors control approximately 67.38% of the company’s stock, highlighting a significant institutional interest in the firm.
On Monday, shares of PennyMac opened at $12.55, experiencing a decline of 3.8%. The firm’s current trading metrics include a 50-day moving average of $12.55 and a 200-day moving average of $12.44. Over the past year, the stock reached a low of $11.60 and a high of $14.93. The company maintains a market capitalization of $1.09 billion, with a price-to-earnings (P/E) ratio of 13.79 and a beta of 1.28.
Financial Performance and Dividend Announcement
PennyMac recently released its quarterly earnings results on October 21. The firm reported earnings per share (EPS) of $0.55, surpassing analysts’ expectations of $0.36 by $0.19. The company achieved a net margin of 37.92% and a return on equity of 9.01%. Revenue for the quarter totaled $99.23 million, exceeding estimates of $97.91 million. Analysts anticipate that PennyMac will post an EPS of 1.54 for the current fiscal year.
In addition to its financial results, PennyMac announced a quarterly dividend of $0.40 per share, scheduled for payment on January 23, 2024. The dividend will be distributed to investors of record as of December 26, 2023. This annualized dividend amounts to $1.60, resulting in a dividend yield of 12.8%. The ex-dividend date is set for December 26, and the firm’s payout ratio currently stands at 175.82%.
PennyMac Mortgage Investment Trust is a publicly traded real estate investment trust (REIT) primarily focused on acquiring and managing residential mortgage loans and related assets. The company aims to generate attractive risk-adjusted returns through investments in both agency and non-agency residential mortgage pools, credit risk transfer securities, and whole loans. Established with external management by PennyMac Financial Services, Inc., the trust leverages its sponsor’s expertise in mortgage servicing, underwriting, and capital markets.
