Zacks Investment Research upgraded shares of PennyMac Mortgage Investment Trust (NYSE:PMT) from a hold rating to a strong-buy rating in a research report sent to investors on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $25.00 price target on the real estate investment trust’s stock.
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 brokerages have also recently commented on PMT. Piper Jaffray Companies initiated coverage on shares of PennyMac Mortgage Investment Trust in a report on Friday, May 24th. They set an overweight rating and a $23.00 target price on the stock. Wedbush reaffirmed a neutral rating on shares of PennyMac Mortgage Investment Trust in a report on Friday, July 26th. Four analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. PennyMac Mortgage Investment Trust presently has an average rating of Buy and an average target price of $22.25.
PennyMac Mortgage Investment Trust (NYSE:PMT) last announced its earnings results on Thursday, May 2nd. The real estate investment trust reported $0.68 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.43 by $0.25. PennyMac Mortgage Investment Trust had a net margin of 46.63% and a return on equity of 13.71%. The company had revenue of $106.62 million for the quarter, compared to analysts’ expectations of $89.10 million. During the same period last year, the firm earned $0.35 earnings per share. Sell-side analysts forecast that PennyMac Mortgage Investment Trust will post 2.1 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 30th. Investors of record on Monday, July 15th were paid a $0.47 dividend. The ex-dividend date of this dividend was Friday, July 12th. This represents a $1.88 dividend on an annualized basis and a yield of 8.55%. PennyMac Mortgage Investment Trust’s dividend payout ratio (DPR) is 94.47%.
In related news, insider Jeffrey Grogin sold 1,862 shares of PennyMac Mortgage Investment Trust stock in a transaction that occurred on Tuesday, June 4th. The shares were sold at an average price of $18.69, for a total value of $34,800.78. Following the transaction, the insider now directly owns 36,642 shares of the company’s stock, valued at $684,838.98. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.45% of the company’s stock.
A number of large investors have recently made changes to their positions in the stock. Flagship Harbor Advisors LLC grew its stake in shares of PennyMac Mortgage Investment Trust by 97.9% during the second quarter. Flagship Harbor Advisors LLC now owns 2,021 shares of the real estate investment trust’s stock worth $44,000 after buying an additional 1,000 shares during the last quarter. Valeo Financial Advisors LLC bought a new stake in shares of PennyMac Mortgage Investment Trust during the second quarter worth $45,000. NEXT Financial Group Inc grew its stake in shares of PennyMac Mortgage Investment Trust by 334.0% during the second quarter. NEXT Financial Group Inc now owns 2,756 shares of the real estate investment trust’s stock worth $60,000 after buying an additional 2,121 shares during the last quarter. Signaturefd LLC grew its stake in shares of PennyMac Mortgage Investment Trust by 229.1% during the second quarter. Signaturefd LLC now owns 2,873 shares of the real estate investment trust’s stock worth $63,000 after buying an additional 2,000 shares during the last quarter. Finally, Quantamental Technologies LLC bought a new stake in shares of PennyMac Mortgage Investment Trust during the first quarter worth $149,000. 70.69% of the stock is currently owned by institutional investors and hedge funds.
PennyMac Mortgage Investment Trust Company Profile
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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