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

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

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 research analysts have also recently issued reports on the stock. Credit Suisse Group lifted their target price on shares of PennyMac Mortgage Investment Trust from $20.00 to $22.00 and gave the stock an “outperform” rating in a research note on Tuesday, September 25th. Barclays set a $19.00 target price on shares of PennyMac Mortgage Investment Trust and gave the stock a “hold” rating in a research note on Friday, December 14th. Finally, JMP Securities lifted their target price on shares of PennyMac Mortgage Investment Trust from $20.00 to $21.00 and gave the stock a “market outperform” rating in a research note on Friday, November 2nd. Three analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. PennyMac Mortgage Investment Trust presently has a consensus rating of “Buy” and an average price target of $20.80.

PennyMac Mortgage Investment Trust stock opened at $19.41 on Friday. PennyMac Mortgage Investment Trust has a 1 year low of $15.44 and a 1 year high of $21.35. The firm has a market capitalization of $1.18 billion, a P/E ratio of 14.93, a P/E/G ratio of 2.21 and a beta of 0.51. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.54 and a current ratio of 0.54.

PennyMac Mortgage Investment Trust (NYSE:PMT) last released its quarterly earnings results on Thursday, November 1st. The real estate investment trust reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.25. PennyMac Mortgage Investment Trust had a net margin of 40.40% and a return on equity of 10.64%. The firm had revenue of $108.50 million for the quarter, compared to analysts’ expectations of $121.87 million. During the same quarter last year, the company earned $0.47 EPS. The firm’s revenue for the quarter was up 43.1% compared to the same quarter last year. As a group, analysts forecast that PennyMac Mortgage Investment Trust will post 1.74 EPS for the current year.

A number of institutional investors and hedge funds have recently made changes to their positions in PMT. Legal & General Group Plc raised its position in PennyMac Mortgage Investment Trust by 4.4% during the second quarter. Legal & General Group Plc now owns 170,415 shares of the real estate investment trust’s stock valued at $3,239,000 after purchasing an additional 7,193 shares in the last quarter. Raymond James & Associates raised its position in PennyMac Mortgage Investment Trust by 42.2% during the second quarter. Raymond James & Associates now owns 14,925 shares of the real estate investment trust’s stock valued at $283,000 after purchasing an additional 4,431 shares in the last quarter. Bank of America Corp DE raised its position in PennyMac Mortgage Investment Trust by 16.5% during the second quarter. Bank of America Corp DE now owns 222,812 shares of the real estate investment trust’s stock valued at $4,231,000 after purchasing an additional 31,546 shares in the last quarter. Centaurus Financial Inc. acquired a new position in PennyMac Mortgage Investment Trust during the second quarter valued at approximately $220,000. Finally, United Services Automobile Association raised its position in PennyMac Mortgage Investment Trust by 30.1% during the second quarter. United Services Automobile Association now owns 21,830 shares of the real estate investment trust’s stock valued at $415,000 after purchasing an additional 5,054 shares in the last quarter. 68.06% of the stock is currently owned by institutional investors.

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).

See Also: Compound Interest and Why It Matters When Investing

Get a free copy of the Zacks research report on PennyMac Mortgage Investment Trust (PMT)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for PennyMac Mortgage Investment Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PennyMac Mortgage Investment Trust and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on reddit