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

PennyMac Mortgage Investment Trust (NYSE:PMT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday, 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. “

Several other research analysts also recently weighed in on PMT. Wedbush restated a “neutral” rating on shares of PennyMac Mortgage Investment Trust in a research note on Friday, July 26th. Deutsche Bank started coverage on PennyMac Mortgage Investment Trust in a research note on Friday, October 11th. They issued a “buy” rating and a $24.00 price target for the company. Finally, Bank of America started coverage on PennyMac Mortgage Investment Trust in a research note on Monday, September 23rd. They issued a “buy” rating and a $23.00 price target for the company. Four equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $23.14.

PMT stock traded up $0.09 during midday trading on Friday, hitting $22.70. The company’s stock had a trading volume of 816,404 shares, compared to its average volume of 824,944. PennyMac Mortgage Investment Trust has a 12 month low of $17.88 and a 12 month high of $23.35. The company has a quick ratio of 0.43, a current ratio of 0.56 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $2.06 billion, a price-to-earnings ratio of 11.41, a price-to-earnings-growth ratio of 1.85 and a beta of 0.59. The company has a 50 day moving average of $22.51 and a two-hundred day moving average of $21.88.

PennyMac Mortgage Investment Trust (NYSE:PMT) last posted its quarterly earnings results on Thursday, October 31st. The real estate investment trust reported $0.71 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.51 by $0.20. PennyMac Mortgage Investment Trust had a return on equity of 13.38% and a net margin of 50.13%. The business had revenue of $130.76 million during the quarter, compared to the consensus estimate of $116.95 million. During the same period in the prior year, the company posted $0.62 EPS. On average, analysts anticipate that PennyMac Mortgage Investment Trust will post 2.38 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Wakefield Asset Management LLLP boosted its position in shares of PennyMac Mortgage Investment Trust by 2.0% during the 3rd quarter. Wakefield Asset Management LLLP now owns 23,776 shares of the real estate investment trust’s stock valued at $529,000 after acquiring an additional 470 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of PennyMac Mortgage Investment Trust by 1.9% during the 2nd quarter. Oregon Public Employees Retirement Fund now owns 26,906 shares of the real estate investment trust’s stock valued at $587,000 after acquiring an additional 500 shares during the last quarter. Flagship Harbor Advisors LLC boosted its position in shares of PennyMac Mortgage Investment Trust by 24.7% during the 3rd quarter. Flagship Harbor Advisors LLC now owns 2,521 shares of the real estate investment trust’s stock valued at $56,000 after acquiring an additional 500 shares during the last quarter. Crossmark Global Holdings Inc. boosted its position in shares of PennyMac Mortgage Investment Trust by 5.8% during the 2nd quarter. Crossmark Global Holdings Inc. now owns 11,370 shares of the real estate investment trust’s stock valued at $248,000 after acquiring an additional 620 shares during the last quarter. Finally, Whittier Trust Co. boosted its position in shares of PennyMac Mortgage Investment Trust by 1.1% during the 3rd quarter. Whittier Trust Co. now owns 61,558 shares of the real estate investment trust’s stock valued at $1,368,000 after acquiring an additional 661 shares during the last quarter. Hedge funds and other institutional investors own 71.45% 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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