PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Gap Down – Here’s Why

PennyMac Mortgage Investment Trust (NYSE:PMT) gapped down prior to trading on Thursday . The stock had previously closed at $10.45, but opened at $10.03. PennyMac Mortgage Investment Trust shares last traded at $10.1260, with a volume of 144,246 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Weiss Ratings cut shares of PennyMac Mortgage Investment Trust from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, May 21st. Wells Fargo & Company dropped their price objective on PennyMac Mortgage Investment Trust from $13.00 to $12.00 and set an “equal weight” rating on the stock in a report on Thursday, May 7th. Zacks Research cut PennyMac Mortgage Investment Trust from a “hold” rating to a “strong sell” rating in a research report on Wednesday, May 27th. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $12.00 target price (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a report on Friday, May 8th. Finally, Piper Sandler decreased their target price on PennyMac Mortgage Investment Trust from $13.00 to $11.50 and set a “neutral” rating for the company in a research report on Tuesday, May 26th. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $12.80.

PennyMac Mortgage Investment Trust Stock Down 2.7%

The company has a market capitalization of $886.39 million, a price-to-earnings ratio of 8.84, a PEG ratio of 0.68 and a beta of 1.13. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 7.99. The firm’s 50 day simple moving average is $10.59 and its 200-day simple moving average is $11.71.

PennyMac Mortgage Investment Trust (NYSE:PMT) last released its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.16 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.20). The firm had revenue of $233.25 million during the quarter, compared to analyst estimates of $92.92 million. PennyMac Mortgage Investment Trust had a return on equity of 10.71% and a net margin of 41.38%. On average, sell-side analysts anticipate that PennyMac Mortgage Investment Trust will post 1.16 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Thursday, July 9th will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 15.7%. The ex-dividend date of this dividend is Thursday, July 9th. PennyMac Mortgage Investment Trust’s dividend payout ratio is currently 139.13%.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

A number of institutional investors have recently added to or reduced their stakes in PMT. Nuveen LLC increased its position in PennyMac Mortgage Investment Trust by 350.3% during the 4th quarter. Nuveen LLC now owns 927,864 shares of the real estate investment trust’s stock worth $11,645,000 after purchasing an additional 721,790 shares during the period. Royal Bank of Canada lifted its holdings 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 during the period. JPMorgan Chase & Co. boosted its stake in shares of PennyMac Mortgage Investment Trust by 149.1% in the fourth quarter. JPMorgan Chase & Co. now owns 873,470 shares of the real estate investment trust’s stock valued at $10,962,000 after buying an additional 522,839 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of PennyMac Mortgage Investment Trust by 1,586.5% in the fourth quarter. SG Americas Securities LLC now owns 526,950 shares of the real estate investment trust’s stock valued at $6,613,000 after buying an additional 495,704 shares in the last quarter. Finally, Barclays PLC grew its holdings in PennyMac Mortgage Investment Trust by 93.2% during the third quarter. Barclays PLC now owns 992,581 shares of the real estate investment trust’s stock worth $12,169,000 after acquiring an additional 478,947 shares during the period. Hedge funds and other institutional investors own 67.38% of the company’s stock.

About PennyMac Mortgage Investment Trust

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.