PennyMac Mortgage Investment Trust (NYSE:PMT) Stock Sees Unusually High Put Option Buying

PennyMac Mortgage Investment Trust (NYSE:PMT) was the recipient of some unusual options trading activity on Friday. Traders acquired 8,282 put options on the stock. This represents an increase of approximately 2,024% compared to the typical volume of 390 put options.

PennyMac Mortgage Investment Trust Stock Down 1.8%

Shares of PMT traded down $0.12 during midday trading on Friday, reaching $6.93. The stock had a trading volume of 1,192,494 shares, compared to its average volume of 1,439,936. PennyMac Mortgage Investment Trust has a 1-year low of $6.80 and a 1-year high of $13.81. The company’s fifty day simple moving average is $8.80 and its two-hundred day simple moving average is $10.03. The company has a market cap of $604.73 million, a price-to-earnings ratio of 4.88, a PEG ratio of 0.39 and a beta of 1.20. The company has a debt-to-equity ratio of 9.18, a current ratio of 1.46 and a quick ratio of 1.46.

PennyMac Mortgage Investment Trust (NYSE:PMT) last issued its earnings results on Wednesday, July 29th. The real estate investment trust reported $0.23 EPS for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.07). The firm had revenue of ($46.00) million for the quarter, compared to analyst estimates of $93.93 million. PennyMac Mortgage Investment Trust had a return on equity of 12.50% and a net margin of 47.79%. Equities research analysts expect that PennyMac Mortgage Investment Trust will post 1.03 earnings per share for the current year.

PennyMac Mortgage Investment Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Thursday, October 8th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 23.1%. The ex-dividend date of this dividend is Thursday, October 8th. PennyMac Mortgage Investment Trust’s payout ratio is 112.68%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on PMT shares. Wells Fargo & Company dropped their price objective on PennyMac Mortgage Investment Trust from $12.00 to $10.00 and set an “equal weight” rating for the company in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft upgraded shares of PennyMac Mortgage Investment Trust from a “hold” rating to a “buy” rating and set a $12.00 price target on the stock in a research note on Saturday, August 15th. Piper Sandler lowered their price objective on shares of PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a “neutral” rating for the company in a research note on Friday, October 9th. UBS Group dropped their price objective on shares of PennyMac Mortgage Investment Trust from $11.25 to $10.00 and set a “neutral” rating for the company in a report on Friday, August 21st. Finally, Citigroup reiterated a “market outperform” rating on shares of PennyMac Mortgage Investment Trust in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, PennyMac Mortgage Investment Trust has a consensus rating of “Hold” and an average target price of $10.92.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PMT. Fortitude Family Office LLC purchased a new stake in PennyMac Mortgage Investment Trust during the third quarter worth approximately $55,000. GAMMA Investing LLC increased its stake in PennyMac Mortgage Investment Trust by 77.2% in the third quarter. GAMMA Investing LLC now owns 12,348 shares of the real estate investment trust’s stock valued at $97,000 after purchasing an additional 5,379 shares during the last quarter. Squarepoint Ops LLC purchased a new position in PennyMac Mortgage Investment Trust in the second quarter valued at approximately $432,000. Nykredit A S acquired a new stake in PennyMac Mortgage Investment Trust during the second quarter worth approximately $37,000. Finally, Corient Private Wealth LP acquired a new stake in PennyMac Mortgage Investment Trust during the second quarter worth approximately $1,747,000. 67.38% of the stock is owned by institutional investors and hedge funds.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust (NYSE: PMT) is a mortgage real estate investment trust that invests primarily in residential mortgage-related assets. The company seeks to generate income through investments in mortgage loans, mortgage servicing rights, mortgage-backed securities and other credit-sensitive assets tied to the U.S. housing market.

PennyMac’s activities include acquiring and managing newly originated and seasoned residential mortgage loans, investing in mortgage servicing rights and related financing arrangements, and participating in correspondent production activities.