PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Up 8.5% – Should You Buy?

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

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on PMT shares. Citizens Jmp lowered their price objective on PennyMac Mortgage Investment Trust from $15.00 to $12.50 and set a “market outperform” rating for the company in a research report on Thursday, October 15th. Weiss Ratings lowered PennyMac Mortgage Investment Trust from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, October 8th. Zacks Research upgraded PennyMac Mortgage Investment Trust from a “strong sell” rating to a “hold” rating in a research note on Friday, October 16th. UBS Group lowered their price target on PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a “neutral” rating for the company in a report on Friday, August 21st. Finally, Citigroup reissued a “market outperform” rating on shares of PennyMac Mortgage Investment Trust in a report on Thursday, October 15th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $10.75.

PennyMac Mortgage Investment Trust Stock Up 4.5%

The firm’s 50 day simple moving average is $8.19 and its 200-day simple moving average is $10.37. The company has a market cap of $718.88 million, a price-to-earnings ratio of 17.92, a P/E/G ratio of 0.69 and a beta of 1.21. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.73 and a quick ratio of 1.46.

PennyMac Mortgage Investment Trust (NYSE:PMT) last posted its earnings results on Thursday, October 29th. The real estate investment trust reported $0.35 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 analysts’ expectations of $95.01 million. PennyMac Mortgage Investment Trust had a return on equity of 11.40% and a net margin of 29.15%. As a group, sell-side analysts anticipate that PennyMac Mortgage Investment Trust will post 0.67 earnings per share for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Thursday, October 8th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 19.4%. The ex-dividend date of this dividend was Thursday, October 8th. PennyMac Mortgage Investment Trust’s dividend payout ratio is presently 347.83%.

Institutional Trading of PennyMac Mortgage Investment Trust

Institutional investors and hedge funds have recently bought and sold shares of the business. Bessemer Group Inc. boosted its stake in PennyMac Mortgage Investment Trust by 142.1% during the 1st quarter. Bessemer Group Inc. now owns 2,189 shares of the real estate investment trust’s stock worth $25,000 after purchasing an additional 1,285 shares during the period. Allworth Financial LP acquired a new position in PennyMac Mortgage Investment Trust in the second quarter valued at $33,000. Nykredit A S purchased a new stake in shares of PennyMac Mortgage Investment Trust in the second quarter valued at about $37,000. Public Employees Retirement System of Ohio purchased a new stake in shares of PennyMac Mortgage Investment Trust in the second quarter valued at about $38,000. Finally, State of Wyoming purchased a new stake in shares of PennyMac Mortgage Investment Trust in the first quarter valued at about $67,000. 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 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.