PennyMac Mortgage Investment Trust (NYSE: PMT) has received a consensus rating of “Hold” from analysts across seven brokerages covering the firm. According to MarketBeat Ratings, five analysts have issued a hold recommendation, while two have rated the stock as a buy. The average target price set by analysts for the next 12 months is approximately $13.88.
Recent evaluations from several financial institutions have influenced this consensus. On October 24, 2023, UBS Group raised its target price for PennyMac from $13.00 to $13.50 and assigned a “neutral” rating. Similarly, Zacks Research upgraded the company from a “strong sell” to a “hold” rating in a report released on October 21, 2023. Keefe, Bruyette & Woods made a significant move by upgrading PennyMac from “market perform” to “outperform,” setting a price objective of $13.50 on December 18, 2023. Weiss Ratings also reaffirmed a “hold (c-)” rating for the trust.
Investor Activity and Stock Performance
Large institutional investors have recently adjusted their stakes in PennyMac, reflecting growing interest. Nuveen LLC acquired a new position valued at $3.71 million during the first quarter. Russell Investments Group Ltd. significantly increased its holdings by 196.5%, now owning 3,262 shares valued at $48,000 after purchasing an additional 2,162 shares. Other notable movements include Jump Financial LLC, which also acquired a new position worth approximately $1.38 million, and Samalin Investment Counsel LLC, which boosted its holdings by 22.8%. Currently, institutional investors hold 67.38% of PennyMac’s stock.
As of the latest trading session, PennyMac shares opened at $12.55, reflecting a 3.8% decline. The firm’s 50-day moving average stands at $12.55, while the 200-day moving average is $12.44. Over the past year, the stock has fluctuated between a low of $11.60 and a high of $14.93. The real estate investment trust has a market capitalization of approximately $1.09 billion, a price-to-earnings ratio of 13.79, and a beta of 1.28.
Recent Earnings and Dividend Announcement
PennyMac released its quarterly earnings results on October 21, 2023, reporting earnings per share of $0.55, surpassing analysts’ expectations of $0.36 by $0.19. The company posted a net margin of 37.92% and a return on equity of 9.01%, with revenues totaling $99.23 million, exceeding estimates of $97.91 million.
In addition to its earnings announcement, PennyMac declared a quarterly dividend of $0.40, set to be paid on January 23, 2024, to investors of record on December 26, 2023. This dividend represents an annualized total of $1.60 and a yield of 12.8%. The company’s payout ratio currently stands at 175.82%.
PennyMac Mortgage Investment Trust specializes in acquiring and managing residential mortgage loans and related assets. The trust aims to deliver attractive risk-adjusted returns through investments in both agency and non-agency residential mortgage pools, credit risk transfer securities, and whole loans. Founded with external management by PennyMac Financial Services, Inc., the trust benefits from the sponsor’s expertise in mortgage servicing and capital markets.
