PennyMac Mortgage Investment Trust (NYSE:PMT) Stock Price Down 10% – What’s Next?

by · The Cerbat Gem

PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report)’s stock price dropped 10% during trading on Friday . The company traded as low as $12.70 and last traded at $12.1620. Approximately 110,220 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 1,136,096 shares. The stock had previously closed at $13.51.

PennyMac Mortgage Investment Trust News Summary

Here are the key news stories impacting PennyMac Mortgage Investment Trust this week:

  • Positive Sentiment: Q4 EPS beat consensus: PMT reported $0.48 EPS vs. consensus ~$0.41, beating estimates and showing core profitability resilience. Read More.
  • Positive Sentiment: Dividend maintained for Q4 — the company previously declared a $0.40 per-share cash dividend for the quarter, supporting yield investors. Read More.
  • Positive Sentiment: Management plans accelerated portfolio rotation, projecting ~30 securitizations in 2026 to recycle holdings and shorten duration — a strategic move that could improve liquidity and earnings mix if executed well. Read More.
  • Neutral Sentiment: Full results and presentation available — investors can review the slide deck and full earnings call transcript for detail on drivers, mark-to-market items, and capital actions. Read More. and Read More.
  • Negative Sentiment: Revenue materially missed expectations: reported revenue (and/or net investment income mix) came in far below analyst revenue expectations, raising concerns about recurring cash generation and putting pressure on dividend coverage narratives. Read More.
  • Negative Sentiment: Market reaction: headlines and commentary led to heavy selling and a sharp share drop following the print, increasing volatility and signaling investor concern about sustainability of yields and capital structure. Read More.
  • Negative Sentiment: Leverage and liquidity metrics remain a watch item — relatively high debt-to-equity and sub-1 current/quick ratios amplify investor sensitivity to revenue swings and dividend risk. Read More.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Zacks Research upgraded PennyMac Mortgage Investment Trust from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 21st. UBS Group upped their price target on shares of PennyMac Mortgage Investment Trust from $13.00 to $13.50 and gave the stock a “neutral” rating in a report on Friday, October 24th. Keefe, Bruyette & Woods raised shares of PennyMac Mortgage Investment Trust from a “market perform” rating to an “outperform” rating and set a $13.50 price target on the stock in a research note on Thursday, December 18th. Weiss Ratings reissued a “hold (c-)” rating on shares of PennyMac Mortgage Investment Trust in a research report on Monday, December 29th. Finally, Citigroup restated an “outperform” rating on shares of PennyMac Mortgage Investment Trust in a research note on Thursday, January 22nd. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, PennyMac Mortgage Investment Trust currently has an average rating of “Hold” and a consensus target price of $13.75.

Check Out Our Latest Analysis on PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust Price Performance

The stock’s fifty day simple moving average is $12.94 and its 200 day simple moving average is $12.49. The company has a debt-to-equity ratio of 4.72, a current ratio of 0.88 and a quick ratio of 0.88. The firm has a market capitalization of $1.03 billion, a P/E ratio of 13.00, a P/E/G ratio of 1.11 and a beta of 1.27.

PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) last announced its earnings results on Thursday, January 29th. The real estate investment trust reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.07. The company had revenue of $33.20 million during the quarter, compared to the consensus estimate of $96.96 million. PennyMac Mortgage Investment Trust had a net margin of 37.92% and a return on equity of 9.01%. On average, equities research analysts predict that PennyMac Mortgage Investment Trust will post 1.54 EPS for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, December 26th were paid a dividend of $0.40 per share. The ex-dividend date was Friday, December 26th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 13.5%. PennyMac Mortgage Investment Trust’s payout ratio is presently 175.82%.

Insider Activity at PennyMac Mortgage Investment Trust

In related news, CEO David Spector bought 10,000 shares of the stock in a transaction that occurred on Monday, November 17th. The stock was bought at an average cost of $12.40 per share, for a total transaction of $124,000.00. Following the purchase, the chief executive officer directly owned 357,794 shares of the company’s stock, valued at approximately $4,436,645.60. This trade represents a 2.88% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.92% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Trust Co. of Vermont purchased a new stake in shares of PennyMac Mortgage Investment Trust during the second quarter valued at $25,000. Flagship Harbor Advisors LLC acquired a new stake in PennyMac Mortgage Investment Trust during the 4th quarter worth about $26,000. Allworth Financial LP grew its stake in PennyMac Mortgage Investment Trust by 1,741.7% during the 2nd quarter. Allworth Financial LP now owns 2,118 shares of the real estate investment trust’s stock valued at $27,000 after purchasing an additional 2,003 shares during the last quarter. Signaturefd LLC grew its stake in 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 purchasing an additional 870 shares during the last quarter. Finally, GAMMA Investing LLC increased its holdings in shares of PennyMac Mortgage Investment Trust by 102.8% in the fourth quarter. GAMMA Investing LLC now owns 2,752 shares of the real estate investment trust’s stock valued at $35,000 after purchasing an additional 1,395 shares during the period. Hedge funds and other institutional investors own 67.38% of the company’s stock.

PennyMac Mortgage Investment Trust Company Profile

(Get Free Report)

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.

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