Key Points
- Insider sale: PennyMac Mortgage Investment Trust CAO Gregory Hendry sold 2,444 shares at an average price of $9.37, reducing his direct ownership by 20% to 9,774 shares. The transaction occurred under a pre-arranged Rule 10b5-1 plan.
- Weak quarterly results: PMT reported quarterly EPS of $0.23, below the $0.30 analyst consensus, while revenue was negative $46 million versus expectations of $93.93 million.
- High dividend, cautious outlook: The company’s $0.40 quarterly dividend implies a 16.8% annualized yield, but its payout ratio is 112.68%. Analysts have an average “Hold” rating and a $12.10 price target after several recent target reductions.
PennyMac Mortgage Investment Trust (NYSE:PMT - Get Free Report) CAO Gregory Hendry sold 2,444 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $9.37, for a total transaction of $22,900.28. Following the transaction, the chief accounting officer directly owned 9,774 shares of the company's stock, valued at approximately $91,582.38. This trade represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
PennyMac Mortgage Investment Trust Stock Performance
PennyMac Mortgage Investment Trust stock opened at $9.53 on Wednesday. The company has a current ratio of 0.72, a quick ratio of 1.39 and a debt-to-equity ratio of 0.52. The firm has a market cap of $831.36 million, a P/E ratio of 6.71, a P/E/G ratio of 0.63 and a beta of 1.14. PennyMac Mortgage Investment Trust has a 1-year low of $9.05 and a 1-year high of $13.81. The firm has a 50-day moving average of $10.17 and a 200-day moving average of $11.31.
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 (EPS) for the quarter, missing analysts' consensus estimates of $0.30 by ($0.07). The business had revenue of ($46.00) million for the quarter, compared to analysts' expectations of $93.93 million. PennyMac Mortgage Investment Trust had a net margin of 47.79% and a return on equity of 12.50%. Sell-side analysts expect that PennyMac Mortgage Investment Trust will post 1.12 EPS for the current year.
PennyMac Mortgage Investment Trust Announces Dividend
The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Thursday, July 9th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 16.8%. The ex-dividend date was Thursday, July 9th. PennyMac Mortgage Investment Trust's dividend payout ratio (DPR) is currently 112.68%.
Hedge Funds Weigh In On PennyMac Mortgage Investment Trust
Institutional investors have recently added to or reduced their stakes in the company. Evergreen Capital Management LLC lifted its position in PennyMac Mortgage Investment Trust by 8.0% during the fourth quarter. Evergreen Capital Management LLC now owns 12,417 shares of the real estate investment trust's stock valued at $161,000 after buying an additional 915 shares during the period. Collar Capital Management LLC grew its position in shares of PennyMac Mortgage Investment Trust by 1.2% in the 4th quarter. Collar Capital Management LLC now owns 90,615 shares of the real estate investment trust's stock worth $1,137,000 after buying an additional 1,100 shares during the period. Wedbush Securities Inc. grew its position in shares of PennyMac Mortgage Investment Trust by 1.3% in the 4th quarter. Wedbush Securities Inc. now owns 90,310 shares of the real estate investment trust's stock worth $1,133,000 after buying an additional 1,125 shares during the period. Bessemer Group Inc. increased its stake in shares of PennyMac Mortgage Investment Trust by 142.1% in the 1st quarter. Bessemer Group Inc. now owns 2,189 shares of the real estate investment trust's stock worth $25,000 after acquiring an additional 1,285 shares in the last quarter. Finally, Intech Investment Management LLC increased its stake in shares of PennyMac Mortgage Investment Trust by 1.3% in the 1st quarter. Intech Investment Management LLC now owns 109,272 shares of the real estate investment trust's stock worth $1,601,000 after acquiring an additional 1,411 shares in the last quarter. Institutional investors own 67.38% of the company's stock.
Analysts Set New Price Targets
A number of brokerages recently commented on PMT. Zacks Research downgraded PennyMac Mortgage Investment Trust from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 27th. Wall Street Zen lowered shares of PennyMac Mortgage Investment Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Wells Fargo & Company dropped 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 report on Friday. Piper Sandler reduced their price target on shares of PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Finally, Keefe, Bruyette & Woods reissued a "market perform" rating and issued a $12.00 price target (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a research note on Friday, May 8th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $12.10.
View Our Latest Research Report on PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust Company Profile
(
Get Free Report)
PennyMac Mortgage Investment Trust (NYSE: PMT) is a publicly traded real estate investment trust (REIT) that primarily acquires and manages residential mortgage loans and mortgage-related assets. The company focuses on generating attractive risk-adjusted returns through investment in agency and non-agency residential mortgage pools, credit risk transfer securities, and residential mortgage whole loans. As a mortgage REIT, PennyMac Investment Trust seeks to capture both interest rate spread and potential price appreciation in its portfolio holdings.
Established with external management by PennyMac Financial Services, Inc, the trust leverages the sponsor's mortgage servicing, underwriting and capital markets expertise.
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