PennyMac Mortgage Investment Trust (NYSE: PMT): Street Finally Waking Up

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    BlackRock Fund Advisors recently announced the acquisition of new stake in PennyMac Mortgage Investment Trust (NYSE:PMT). The institutional investor has increased its shareholding in the Real Estate company by 0.76% to 15.36 million shares with purchase of 0.12 million shares. This fresh investment now brings its stake to 15.39% valued currently at $269.31 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.44 million to 10.2 million shares. And Goldman Sachs Asset Management LP has lifted its position by 52.55% or 1.24 million shares – to 3.6 million shares.

    With over 1.06 million PennyMac Mortgage Investment Trust (PMT) shares trading Tuesday and a closing price of $17.72 on the day, the dollar volume was approximately $18.73 million. The shares have shown a positive weekly performance of 2.67% and its price on 07/14/20 gained nearly 1.90%. Currently, there are 100.25M common shares owned by the public and among those 98.00M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for PMT have a consensus price objective of $18.10. The analysts have set the share’s price value over the next 12 months at a high of $22.00 and a low of $11.00 should the stock experience a downside. Incidentally, analysts’ outlook for the PennyMac Mortgage Investment Trust stock is 2.50 for the next 12 months. The average price target is 6.14% above its last price level and an upside to the estimated low will see the stock lose -61.09% over that period. But an upside of 19.45% will see the stock hit the forecast high price target while mean target price for the stock is $18.50.

    Insiders at the company have transacted a total of 130 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 85 of these insider trades were purchases, accounting for 404,922 shares. Insider sales of the common stock occurred on 45 occasions, with total insider shares sold totaling 96,242 shares.

    The top 3 mutual fund holders in PennyMac Mortgage Investment Trust are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. iShares Core S&P Small Cap ETF owns 6.19 million shares of the company’s stock, all valued at over $108.55 million. Vanguard Total Stock Market Index sold 4165.0 shares to see its total holdings shrink to 2.75 million shares valued at over $48.24 million and representing 2.76% of the shares outstanding. Vanguard Small Cap Index Fund sold 15844.0 shares to bring its total holdings to over 2.56 million shares at a value of $44.81 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.56% of the shares outstanding.

    Shares of PennyMac Mortgage Investment Trust (NYSE: PMT) opened at $17.08, down -$0.31 from a prior closing price of $17.39. However, the script later closed the day at $17.72, up 1.90%. The company’s stock has a 5-day price change of 2.67% and 73.56% over the past three months. PMT shares are trading -20.50% year to date (YTD), with the 12-month market performance down to -19.86% lower. It has a 12-month low price of $3.50 and touched a high of $23.79 over the same period. Currently, 1.06 million shares have been traded, compared to an average intraday trading volume of 1.78 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.79%, 28.33%, and -2.48% respectively.

    Institutional ownership of PennyMac Mortgage Investment Trust (NYSE: PMT) shares accounts for 75.50% of the company’s 100.25M shares outstanding. Mutual fund holders own 31.79%, while other institutional holders and individual stakeholders account for 43.07% and 2.14% respectively.

    It has a market capitalization of $1.71B and a beta (3y monthly) value of 1.16. The earnings-per-share (ttm) stands at -$4.33. The company has a debt-to-equity ratio at 5.97. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.30% over the week and 5.68% over the month.

    Analysts forecast that PennyMac Mortgage Investment Trust (PMT) will achieve an EPS of $2.12 for the current quarter, $0.69 for the next quarter and $2.05 for 2021. The lowest estimate earnings-per-share for the quarter is $0.37 while analysts give the company a high EPS estimate of $7.17. Comparatively, EPS for the current quarter was $0.5 a year ago. Earnings per share for the fiscal year are expected to increase by 22.10%, and 207.10% over the next financial year. EPS should grow at an annualized rate of 4.15% over the next five years, compared to 0.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate PennyMac Mortgage Investment Trust (PMT) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 5 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the PMT, a number of firms have released research notes about the stock. BofA/Merrill stated their Neutral rating for the stock in a research note on April 28, 2020, with the firm’s price target at. Compass Point coverage for the PennyMac Mortgage Investment Trust (PMT) stock in a research note released on December 02, 2019 offered a Neutral rating with a price target of. Deutsche Bank was of a view on October 11, 2019 that the stock is Buy, while BofA/Merrill gave the stock Buy rating on September 23, 2019, issuing a price target of $23. Piper Jaffray on their part issued Overweight rating on May 24, 2019.

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