PennyMac Mortgage Investment Trust (PMT) Lowered to Sell at Zacks Investment Research

PennyMac Mortgage Investment Trust (NYSE:PMT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday, January 4th.

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 equities analysts have also recently commented on the company. ValuEngine raised PennyMac Mortgage Investment Trust from a “hold” rating to a “buy” rating in a report on Friday, December 1st. Keefe, Bruyette & Woods cut PennyMac Mortgage Investment Trust from an “outperform” rating to a “market perform” rating and cut their price target for the company from $19.00 to $18.00 in a report on Tuesday, October 10th. Three research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $18.50.

PennyMac Mortgage Investment Trust (PMT) opened at $16.31 on Thursday. PennyMac Mortgage Investment Trust has a 12-month low of $14.87 and a 12-month high of $18.46. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.78 and a current ratio of 0.78. The firm has a market capitalization of $1,020.89, a PE ratio of 11.49 and a beta of 0.52.

PennyMac Mortgage Investment Trust (NYSE:PMT) last posted its quarterly earnings data on Thursday, November 2nd. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.18). The business had revenue of $75.80 million for the quarter, compared to analyst estimates of $81.72 million. PennyMac Mortgage Investment Trust had a return on equity of 7.59% and a net margin of 36.07%. PennyMac Mortgage Investment Trust’s revenue for the quarter was down 26.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.06 EPS. analysts forecast that PennyMac Mortgage Investment Trust will post 1.32 earnings per share for the current fiscal year.

PennyMac Mortgage Investment Trust announced that its board has authorized a stock repurchase plan on Wednesday, December 20th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to purchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Hedge funds have recently added to or reduced their stakes in the company. Sei Investments Co. grew its stake in shares of PennyMac Mortgage Investment Trust by 20,756.3% in the 3rd quarter. Sei Investments Co. now owns 6,674 shares of the real estate investment trust’s stock valued at $116,000 after purchasing an additional 6,642 shares during the period. Public Employees Retirement System of Ohio grew its stake in shares of PennyMac Mortgage Investment Trust by 4.4% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 7,207 shares of the real estate investment trust’s stock valued at $132,000 after purchasing an additional 304 shares during the period. M&T Bank Corp grew its stake in shares of PennyMac Mortgage Investment Trust by 4.8% in the 2nd quarter. M&T Bank Corp now owns 10,900 shares of the real estate investment trust’s stock valued at $200,000 after purchasing an additional 500 shares during the period. Neuberger Berman Group LLC bought a new stake in shares of PennyMac Mortgage Investment Trust in the 2nd quarter valued at approximately $201,000. Finally, Orinda Asset Management LLC bought a new stake in shares of PennyMac Mortgage Investment Trust in the 4th quarter valued at approximately $241,000. Institutional investors own 63.12% of the company’s stock.

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PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The Company conducts all of its operations, and makes all of its investments, through PennyMac Operating Partnership, L.P. (its Operating Partnership) and its subsidiaries.

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