PennyMac Mortgage Investment Trust (NYSE:PMT) Shares Down 10% – Should You Sell?

PennyMac Mortgage Investment Trust (NYSE:PMT) traded down 10% during trading on Friday . The company traded as low as $12.70 and last traded at $12.1620. 110,220 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 1,136,096 shares. The stock had previously closed at $13.51.

Key Stories Impacting PennyMac Mortgage Investment Trust

Here are the key news stories impacting PennyMac Mortgage Investment Trust this week:

• Positive Sentiment: Q4 EPS beat consensus: PMT reported $0.48 EPS vs. consensus ~$0.41, beating estimates and showing core profitability resilience. Read More.
• Positive Sentiment: Dividend maintained for Q4 — the company previously declared a $0.40 per-share cash dividend for the quarter, supporting yield investors. Read More.
• Positive Sentiment: Management plans accelerated portfolio rotation, projecting ~30 securitizations in 2026 to recycle holdings and shorten duration — a strategic move that could improve liquidity and earnings mix if executed well. Read More.
• Neutral Sentiment: Full results and presentation available — investors can review the slide deck and full earnings call transcript for detail on drivers, mark-to-market items, and capital actions. Read More. and Read More.
• Negative Sentiment: Revenue materially missed expectations: reported revenue (and/or net investment income mix) came in far below analyst revenue expectations, raising concerns about recurring cash generation and putting pressure on dividend coverage narratives. Read More.
• Negative Sentiment: Market reaction: headlines and commentary led to heavy selling and a sharp share drop following the print, increasing volatility and signaling investor concern about sustainability of yields and capital structure. Read More.
• Negative Sentiment: Leverage and liquidity metrics remain a watch item — relatively high debt-to-equity and sub-1 current/quick ratios amplify investor sensitivity to revenue swings and dividend risk. Read More.

Analysts Set New Price Targets

Several analysts have commented on PMT shares. Weiss Ratings restated a “hold (c-)” rating on shares of PennyMac Mortgage Investment Trust in a research note on Monday, December 29th. Citigroup restated an “outperform” rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, January 22nd. UBS Group upped their price target on shares of PennyMac Mortgage Investment Trust from $13.00 to $13.50 and gave the company a “neutral” rating in a report on Friday, October 24th. Zacks Research raised PennyMac Mortgage Investment Trust from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 21st. Finally, Citizens Jmp decreased their price objective on PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a “market outperform” rating for the company in a report on Thursday, January 22nd. Three analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $13.75.

PennyMac Mortgage Investment Trust Stock Down 12.5%

The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 4.72. The business has a 50-day simple moving average of $12.94 and a 200-day simple moving average of $12.49. The company has a market cap of $1.03 billion, a PE ratio of 13.00, a P/E/G ratio of 1.11 and a beta of 1.27.

PennyMac Mortgage Investment Trust (NYSE:PMT) last posted its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.07. PennyMac Mortgage Investment Trust had a return on equity of 9.01% and a net margin of 37.92%.The business had revenue of $33.20 million during the quarter, compared to analysts’ expectations of $96.96 million. Equities research analysts anticipate that PennyMac Mortgage Investment Trust will post 1.54 EPS for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Shareholders of record on Friday, December 26th were given a dividend of $0.40 per share. The ex-dividend date was Friday, December 26th. This represents a $1.60 dividend on an annualized basis and a yield of 13.5%. PennyMac Mortgage Investment Trust’s dividend payout ratio is currently 175.82%.

Insider Activity

In related news, CEO David Spector bought 10,000 shares of the business’s stock in a transaction dated Monday, November 17th. The stock was acquired at an average price of $12.40 per share, with a total value of $124,000.00. Following the completion of the purchase, the chief executive officer directly owned 357,794 shares of the company’s stock, valued at approximately $4,436,645.60. This trade represents a 2.88% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. 0.92% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

Several institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC raised its holdings in shares of PennyMac Mortgage Investment Trust by 36.7% during the first quarter. AQR Capital Management LLC now owns 16,155 shares of the real estate investment trust’s stock valued at $237,000 after acquiring an additional 4,335 shares during the last quarter. Jane Street Group LLC acquired a new stake in shares of PennyMac Mortgage Investment Trust in the first quarter worth approximately $4,166,000. Intech Investment Management LLC increased its position in shares of PennyMac Mortgage Investment Trust by 1.3% during the first quarter. Intech Investment Management LLC now owns 109,272 shares of the real estate investment trust’s stock worth $1,601,000 after purchasing an additional 1,411 shares in the last quarter. State of Alaska Department of Revenue raised its stake in PennyMac Mortgage Investment Trust by 7.6% in the 2nd quarter. State of Alaska Department of Revenue now owns 51,796 shares of the real estate investment trust’s stock valued at $665,000 after purchasing an additional 3,667 shares during the last quarter. Finally, Signaturefd LLC raised its stake in PennyMac Mortgage Investment Trust by 53.8% in the 2nd quarter. Signaturefd LLC now owns 2,486 shares of the real estate investment trust’s stock valued at $32,000 after purchasing an additional 870 shares during the last quarter. 67.38% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Mortgage Investment Trust Company Profile

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.