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

PennyMac Mortgage Investment Trust (NYSE:PMT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research 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 equities analysts have also issued reports on the company. Deutsche Bank initiated coverage on PennyMac Mortgage Investment Trust in a research note on Friday, October 11th. They issued a “buy” rating and a $24.00 target price on the stock. Bank of America initiated coverage on PennyMac Mortgage Investment Trust in a research note on Monday, September 23rd. They issued a “buy” rating and a $23.00 target price on the stock. Finally, Wedbush reiterated a “neutral” rating on shares of PennyMac Mortgage Investment Trust in a research note on Friday, July 26th. Four analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. PennyMac Mortgage Investment Trust has an average rating of “Buy” and an average price target of $23.14.

Shares of PennyMac Mortgage Investment Trust stock traded up $0.09 during trading on Friday, hitting $22.70. 816,404 shares of the stock traded hands, compared to its average volume of 824,944. The firm has a market cap of $2.06 billion, a P/E ratio of 11.41, a price-to-earnings-growth ratio of 1.85 and a beta of 0.59. The company has a current ratio of 0.56, a quick ratio of 0.43 and a debt-to-equity ratio of 0.27. PennyMac Mortgage Investment Trust has a 52-week low of $17.88 and a 52-week high of $23.35. The stock’s fifty day simple moving average is $22.51 and its 200 day simple moving average is $21.88.

PennyMac Mortgage Investment Trust (NYSE:PMT) last announced its quarterly earnings results on Thursday, October 31st. The real estate investment trust reported $0.71 EPS for the quarter, beating the consensus estimate of $0.51 by $0.20. The firm had revenue of $130.76 million for the quarter, compared to analyst estimates of $116.95 million. PennyMac Mortgage Investment Trust had a return on equity of 13.38% and a net margin of 50.13%. During the same quarter last year, the firm posted $0.62 earnings per share. As a group, equities analysts expect that PennyMac Mortgage Investment Trust will post 2.38 EPS for the current year.

Hedge funds and other institutional investors have recently modified their holdings of the business. JPMorgan Chase & Co. boosted its holdings in PennyMac Mortgage Investment Trust by 676.7% in the second quarter. JPMorgan Chase & Co. now owns 1,008,688 shares of the real estate investment trust’s stock worth $21,928,000 after acquiring an additional 878,819 shares in the last quarter. Citadel Advisors LLC boosted its holdings in PennyMac Mortgage Investment Trust by 38.3% in the second quarter. Citadel Advisors LLC now owns 447,983 shares of the real estate investment trust’s stock worth $9,779,000 after acquiring an additional 124,071 shares in the last quarter. Panagora Asset Management Inc. boosted its holdings in PennyMac Mortgage Investment Trust by 435.2% in the second quarter. Panagora Asset Management Inc. now owns 109,190 shares of the real estate investment trust’s stock worth $2,384,000 after acquiring an additional 88,790 shares in the last quarter. Nuveen Asset Management LLC acquired a new stake in PennyMac Mortgage Investment Trust in the second quarter worth about $6,164,000. Finally, Kovack Advisors Inc. acquired a new stake in PennyMac Mortgage Investment Trust in the third quarter worth about $240,000. 71.45% of the stock is 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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