PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Gap Down – Should You Sell?

PennyMac Mortgage Investment Trust (NYSE:PMT) shares gapped down prior to trading on Friday . The stock had previously closed at $13.04, but opened at $12.57. PennyMac Mortgage Investment Trust shares last traded at $12.6650, with a volume of 44,617 shares changing hands.

Analyst Upgrades and Downgrades

PMT has been the topic of several analyst reports. UBS Group raised their target price on shares of PennyMac Mortgage Investment Trust from $13.00 to $13.50 and gave the company a “neutral” rating in a report on Friday, October 24th. Keefe, Bruyette & Woods upgraded shares of PennyMac Mortgage Investment Trust from a “market perform” rating to an “outperform” rating and set a $13.50 price objective on the stock in a report on Thursday, December 18th. Zacks Research raised shares of PennyMac Mortgage Investment Trust from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 21st. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of PennyMac Mortgage Investment Trust in a report on Monday. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $13.88.

PennyMac Mortgage Investment Trust Price Performance

The stock has a market capitalization of $1.10 billion, a price-to-earnings ratio of 13.85, a price-to-earnings-growth ratio of 2.12 and a beta of 1.28. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 4.72. The company’s 50 day moving average is $12.54 and its 200 day moving average is $12.44.

PennyMac Mortgage Investment Trust (NYSE:PMT) last released its quarterly earnings data on Tuesday, October 21st. The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.19. PennyMac Mortgage Investment Trust had a net margin of 37.92% and a return on equity of 9.01%. The company had revenue of $99.23 million during the quarter, compared to the consensus estimate of $97.91 million. Research analysts anticipate that PennyMac Mortgage Investment Trust will post 1.54 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, January 23rd. Shareholders of record on Friday, December 26th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, December 26th. This represents a $1.60 annualized dividend and a yield of 12.7%. PennyMac Mortgage Investment Trust’s payout ratio is 175.82%.

Insiders Place Their Bets

In other news, CEO David Spector acquired 10,000 shares of PennyMac Mortgage Investment Trust stock in a transaction on Monday, November 17th. The stock was bought at an average price of $12.40 per share, for a total transaction of $124,000.00. Following the completion of the purchase, the chief executive officer owned 357,794 shares in the company, valued at $4,436,645.60. This represents a 2.88% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.92% of the company’s stock.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

Several hedge funds have recently modified their holdings of the stock. Trust Co. of Vermont acquired a new stake in shares of PennyMac Mortgage Investment Trust in the 2nd quarter worth $25,000. Allworth Financial LP increased its holdings in PennyMac Mortgage Investment Trust by 1,741.7% in the second quarter. Allworth Financial LP now owns 2,118 shares of the real estate investment trust’s stock valued at $27,000 after buying an additional 2,003 shares in the last quarter. Signaturefd LLC lifted its position in shares of PennyMac Mortgage Investment Trust by 53.8% during the 2nd quarter. Signaturefd LLC now owns 2,486 shares of the real estate investment trust’s stock valued at $32,000 after acquiring an additional 870 shares during the period. CWM LLC raised its holdings in PennyMac Mortgage Investment Trust by 57.7% during the third quarter. CWM LLC now owns 2,943 shares of the real estate investment trust’s stock worth $36,000 after purchasing an additional 1,077 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in shares of PennyMac Mortgage Investment Trust by 196.5% during the 1st quarter. Russell Investments Group Ltd. now owns 3,262 shares of the real estate investment trust’s stock worth $48,000 after buying an additional 2,162 shares during the last quarter. 67.38% of the stock is owned by institutional investors and hedge funds.

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.