PennyMac Mortgage Investment Trust (NYSE:PMT) Stock Price Down 4.4% – Should You Sell?

PennyMac Mortgage Investment Trust (NYSE:PMT) traded down 4.4% during mid-day trading on Wednesday. The stock traded as low as $7.48 and last traded at $7.5250. 423,443 shares changed hands during trading, a decline of 73% from the average session volume of 1,549,223 shares. The stock had previously closed at $7.87.

Analyst Ratings Changes

PMT has been the topic of a number of research reports. BTIG Research reiterated a “neutral” rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday. Piper Sandler lowered their price target on shares of PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a “neutral” rating for the company in a report on Friday, October 9th. UBS Group dropped their price objective on shares of PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a “neutral” rating for the company in a research report on Friday, August 21st. Citigroup reaffirmed a “market outperform” rating on shares of PennyMac Mortgage Investment Trust in a report on Thursday, October 15th. Finally, Wall Street Zen downgraded PennyMac Mortgage Investment Trust from a “sell” rating to a “strong sell” rating in a report on Saturday, November 7th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, PennyMac Mortgage Investment Trust presently has an average rating of “Hold” and an average target price of $10.75.

PennyMac Mortgage Investment Trust Price Performance

The company has a debt-to-equity ratio of 11.14, a current ratio of 1.60 and a quick ratio of 1.60. The stock has a market cap of $631.76 million, a P/E ratio of 15.75, a P/E/G ratio of 1.42 and a beta of 1.21. The company’s 50 day simple moving average is $8.00 and its 200 day simple moving average is $10.20.

PennyMac Mortgage Investment Trust (NYSE:PMT) last announced its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.05. PennyMac Mortgage Investment Trust had a return on equity of 11.41% and a net margin of 29.15%. The company had revenue of $36.24 million during the quarter, compared to the consensus estimate of $95.01 million. As a group, equities analysts forecast that PennyMac Mortgage Investment Trust will post 0.31 earnings per share for the current year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Thursday, October 8th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Thursday, October 8th. This represents a $1.60 dividend on an annualized basis and a yield of 22.1%. PennyMac Mortgage Investment Trust’s dividend payout ratio is 347.83%.

Hedge Funds Weigh In On PennyMac Mortgage Investment Trust

Several hedge funds have recently made changes to their positions in the business. Bessemer Group Inc. lifted its position in shares of PennyMac Mortgage Investment Trust by 142.1% in the first 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 in the last quarter. Allworth Financial LP bought a new position in PennyMac Mortgage Investment Trust in the second quarter valued at $33,000. Nykredit A S bought a new position in PennyMac Mortgage Investment Trust in the second quarter valued at $37,000. Public Employees Retirement System of Ohio bought a new position in PennyMac Mortgage Investment Trust in the second quarter valued at $38,000. Finally, Hantz Financial Services Inc. grew its position in PennyMac Mortgage Investment Trust by 287.9% in the third quarter. Hantz Financial Services Inc. now owns 3,499 shares of the real estate investment trust’s stock valued at $28,000 after purchasing an additional 2,597 shares in the last quarter. 67.38% of the stock is owned by institutional investors.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust focused on the U.S. residential mortgage market. The company invests in mortgage-related assets, including mortgage loans and mortgage-backed securities, and seeks to generate returns from its investment portfolio. Its activities include acquiring and managing loans and securities across different parts of the mortgage market. These investments expose the trust to factors such as borrower credit performance, interest rates and changes in mortgage prepayment activity.