PennyMac Mortgage Investment Trust (NYSE:PMT) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research lowered shares of PennyMac Mortgage Investment Trust (NYSE:PMT) from a buy rating to a hold rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “PennyMac Mortgage Investment Trust is a real estate investment trust. The Company operates as a specialty finance company that will invest primarily in residential mortgage loans and mortgage-related assets. The company seeks to acquire primarily troubled home mortgage loans and mortgage-backed securities from FDIC liquidations of failed banks, US Treasury Legacy Loans Program auctions, and direct acquisitions from mortgage and insurance companies and foreign banks. The Company’s objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation. The Company focuses on investing in mortgage loans, a substantial portion of which may be distressed and acquired at discounts to their unpaid principal balances. PennyMac is managed by investment adviser PNMAC Capital Management and offers primary and special loan servicing through PennyMac Loan Services. “

A number of other analysts have also weighed in on PMT. Bank of America started coverage on PennyMac Mortgage Investment Trust in a research note on Monday, September 23rd. They set a buy rating and a $23.00 price objective for the company. Wedbush reissued a neutral rating on shares of PennyMac Mortgage Investment Trust in a research note on Friday, July 26th. Four analysts have rated the stock with a hold rating and five have given a buy rating to the stock. PennyMac Mortgage Investment Trust has a consensus rating of Buy and a consensus target price of $22.71.



Shares of PMT opened at $22.46 on Tuesday. The firm has a market cap of $1.78 billion, a P/E ratio of 11.29, a P/E/G ratio of 2.02 and a beta of 0.59. The stock has a 50 day simple moving average of $22.11 and a two-hundred day simple moving average of $21.61. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.43 and a quick ratio of 0.43. PennyMac Mortgage Investment Trust has a 1 year low of $17.88 and a 1 year high of $22.74.

PennyMac Mortgage Investment Trust (NYSE:PMT) last released its quarterly earnings data on Thursday, August 1st. The real estate investment trust reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.02. The firm had revenue of $96.40 million during the quarter, compared to analyst estimates of $104.95 million. PennyMac Mortgage Investment Trust had a return on equity of 13.29% and a net margin of 47.03%. During the same quarter in the prior year, the firm posted $0.70 earnings per share. On average, equities analysts anticipate that PennyMac Mortgage Investment Trust will post 2.23 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 30th. Stockholders of record on Monday, October 14th will be paid a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 8.37%. The ex-dividend date is Thursday, October 10th. PennyMac Mortgage Investment Trust’s dividend payout ratio (DPR) is presently 94.47%.

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. raised its holdings in shares of PennyMac Mortgage Investment Trust by 15.4% during the second quarter. BlackRock Inc. now owns 12,767,858 shares of the real estate investment trust’s stock valued at $278,723,000 after acquiring an additional 1,705,455 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of PennyMac Mortgage Investment Trust by 11.6% during the second quarter. Vanguard Group Inc. now owns 7,310,611 shares of the real estate investment trust’s stock valued at $159,590,000 after acquiring an additional 762,048 shares in the last quarter. UBS Group AG raised its holdings in shares of PennyMac Mortgage Investment Trust by 20.9% during the second quarter. UBS Group AG now owns 2,026,356 shares of the real estate investment trust’s stock valued at $44,235,000 after acquiring an additional 349,819 shares in the last quarter. Invesco Ltd. raised its holdings in shares of PennyMac Mortgage Investment Trust by 21.4% during the second quarter. Invesco Ltd. now owns 1,621,371 shares of the real estate investment trust’s stock valued at $35,395,000 after acquiring an additional 285,719 shares in the last quarter. Finally, LSV Asset Management raised its holdings in shares of PennyMac Mortgage Investment Trust by 1.2% during the second quarter. LSV Asset Management now owns 1,393,510 shares of the real estate investment trust’s stock valued at $30,420,000 after acquiring an additional 16,500 shares in the last quarter. Institutional investors own 71.22% of the company’s stock.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company's Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS).

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