PennyMac Mortgage Investment Trust (NYSE:PMT) Releases Earnings Results, Misses Expectations By $0.07 EPS

Posted by Stanley Muller on Jul 31st, 2026

PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) posted its quarterly earnings data on Wednesday. The real estate investment trust reported $0.23 EPS for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.07), Zacks reports. PennyMac Mortgage Investment Trust had a net margin of 47.79% and a return on equity of 12.44%. The firm had revenue of ($46.00) million during the quarter, compared to the consensus estimate of $93.93 million.

Here are the key takeaways from PennyMac Mortgage Investment Trust’s conference call:

Second-quarter earnings declined to $0.23 per diluted share, producing a 6% annualized return on equity, while book value per share fell 1% to $14.83. Credit-sensitive and aggregation/securitization strategies were pressured by market-driven valuation declines and lower volumes.
PMT is pivoting away from agency MSR investments toward higher-yielding credit-sensitive assets, including organically created subordinate bonds. The company agreed to sell $13 billion of low-coupon agency MSRs, with closing expected by the end of August, and expects the reallocation to improve long-term returns.
The private-label securitization program remains a key growth engine, with six transactions totaling $2.2 billion in the quarter and two additional transactions totaling $692 million after quarter-end. PMT remains on pace for approximately 30 securitizations in 2026 and expects more than $600 million of retained investments during the year.
Projected income excluding market-driven value changes is approximately $0.33 per share per quarter, below the $0.40 quarterly dividend, although management expects taxable income to support maintaining the dividend. Core debt-to-equity rose to 6.2 times, while total debt-to-equity increased to approximately 12 times as securitization activity expanded.

PennyMac Mortgage Investment Trust Stock Down 1.9%

Shares of PMT stock traded down $0.17 on Friday, reaching $9.13. 178,336 shares of the company were exchanged, compared to its average volume of 1,280,181. The company has a debt-to-equity ratio of 7.99, a current ratio of 1.39 and a quick ratio of 1.39. The company has a 50-day moving average of $10.23 and a 200-day moving average of $11.38. The company has a market cap of $796.59 million, a price-to-earnings ratio of 6.44, a PEG ratio of 0.62 and a beta of 1.13. PennyMac Mortgage Investment Trust has a one year low of $9.05 and a one year high of $13.81.

PennyMac Mortgage Investment Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Thursday, July 9th were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 17.5%. The ex-dividend date of this dividend was Thursday, July 9th. PennyMac Mortgage Investment Trust’s dividend payout ratio is 112.68%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of PennyMac Mortgage Investment Trust in the fourth quarter valued at $33,000. Advisory Services Network LLC bought a new stake in shares of PennyMac Mortgage Investment Trust during the third quarter worth about $50,000. Russell Investments Group Ltd. increased its position in shares of PennyMac Mortgage Investment Trust by 49.0% during the second quarter. Russell Investments Group Ltd. now owns 4,861 shares of the real estate investment trust’s stock worth $63,000 after acquiring an additional 1,599 shares in the last quarter. Sei Investments Co. acquired a new stake in shares of PennyMac Mortgage Investment Trust in the 2nd quarter worth about $129,000. Finally, Tower Research Capital LLC TRC raised its holdings in shares of PennyMac Mortgage Investment Trust by 113.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 11,223 shares of the real estate investment trust’s stock worth $144,000 after acquiring an additional 5,954 shares during the last quarter. 67.38% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

PMT has been the topic of several recent analyst reports. Weiss Ratings lowered shares of PennyMac Mortgage Investment Trust from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, May 21st. Piper Sandler decreased their price target on PennyMac Mortgage Investment Trust from $11.50 to $10.00 and set a “neutral” rating for the company in a report on Thursday. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $12.00 price objective (down from $13.50) on shares of PennyMac Mortgage Investment Trust in a research note on Friday, May 8th. Zacks Research lowered PennyMac Mortgage Investment Trust from a “hold” rating to a “strong sell” rating in a research report on Wednesday, May 27th. Finally, Wall Street Zen cut PennyMac Mortgage Investment Trust from a “hold” rating to a “sell” rating in a research note on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $12.10.

View Our Latest Analysis on PennyMac Mortgage Investment Trust

About PennyMac Mortgage Investment Trust

(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.