PennyMac Mortgage Investment Trust (PMT): What is the Risk Factor?

PennyMac Mortgage Investment Trust (NYSE:PMT) saw an upside of 0.98% to close Tuesday at $20.58 after adding $0.2 on the day. The 5-day average trading volume is 715,400 shares of the company’s common stock. It has gained $20.72 in the past week. An average of 721,825 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 759,234.

PMT’s 1-month performance is 3.89% or $1.09 on its low of $19.32 reached on 09/20/21. The company’s shares have touched a 52-week low of $14.79 and high of $21.53, with the stock’s rally to the 52-week high happening on 06/25/21. YTD, PMT has achieved 17.00% or $2.99. However, the current price is down -4.41%% from the 52-week high price.

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Insider Transactions

On Sep 27, 16 days have gone by since the last insider trading activity for PennyMac Mortgage Investment Trust (PMT). Carnahan Scott W. (Director) most recently sold 2,250 shares at $20.00 per share on Sep 27. This transaction cost the insider $45,000. Director, Sullivan Marianne, sold 62,378 shares at a price of $20.53 on Jun 08. Then, on Jun 07, Director Sullivan Marianne sold 7,583 shares at a price of $20.17 per share. This transaction amounted to $152,949.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 1821.00 and a low of 2.328. PMT stock has a beta of 1.11. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.96 while the price-to-book (PB) in the most recent quarter is 0.99.

PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share. Its dividend yield is 9.14% and the payout ratio is 64.20%. PMT paid $0.47 a share compared with prior rate of $0.47, down 0.0% from last year’s. The company has boosted its dividend for the last 2 consecutive years with the latest dividend increase of $0.07 reported on Monday December 21 2020. Measured over the last 3 years, the Dividend has been growing by -19.15% yearly.

It is projected that PennyMac Mortgage Investment Trust’s next ex-dividend date will be on 14-Oct-2021. PMT is expected to distribute $0.47 as its next dividend.

As well, the company’s long term debt to equity for the quarter ending June 29 was 1.80, while the total debt to equity was 5.32. In terms of profitability, the gross margin trailing 12 months is 32.50%. while for the period ending June 29; PennyMac Mortgage Investment Trust’s operating margin was 29.40%. The firm’s gross profit as reported stood at $398.82 million against revenue of $740.12 million.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected PMT to announce $0.6 per share in earnings in its latest quarter, but it posted $0.32, representing a -46.70% surprise. EBITDA for the quarter stood at more than $116.94 million. PMT stock balance sheet for the quarter ending June 29 shows that, with total debt at $10.97 billion. Shareholders hold equity totaling $97.87 million

Technical Picture

Let’s look briefly at PennyMac Mortgage Investment Trust (PMT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 12 October was 77.78% to suggest the stock is trending Overbought, with historical volatility in this time period at 6.85%.

The stock’s 5-day moving average is $20.31, reflecting a +2.54% or $0.51 change from its current price. PMT is currently trading +3.78% above its 20-day SMA, +6.08% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +4.63% and +14.27% respectively.

Stochastic %K and %D was 87.05% and 87.09% and the average true range (ATR) pointed at 0.28. The RSI (14) points at 69.83%, while the 14-day stochastic is at 87.39% with the period’s ATR at 0.29. The stock’s 9-day MACD Oscillator is pointing at 0.28 and 0.42 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for PennyMac Mortgage Investment Trust (NYSE: PMT), B. Riley Securities launched coverage with a Buy rating. Analysts offering their rating for PMT stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate PMT as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 5 have offered a “buy” rating.

What is PMT’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $19.00 and a high of $23.00, with their median price target at $21.00. Looking at these predictions, the average price target given by analysts is for PennyMac Mortgage Investment Trust (PMT) stock is $20.89.


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