PMT Stock Recent News

PennyMac Mortgage Investment Trust has significant investments in Mortgage Servicing Rights but has a weak long-term track record in book value and recently cut its dividend. PMT may face another dividend cut in 2023 as it has paid out more in dividends than it has produced in income. With the potential for the central bank to change its interest rate policy next year, PMT is not an attractive investment for passive income investors.

PennyMac Mortgage (PMT) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.01 per share a year ago.

PennyMac Mortgage has announced that its preferred securities will not transition to a floating rate and will remain pegged to existing fixed rates. The decision has sparked debate over the legality and interpretation of the LIBOR Act and prospectus language. In our view, while unfortunate, there is nothing plainly illegal about this.

PennyMac Mortgage Investment Trust announced plans to use fixed-rate dividends instead of floating rates for its preferred shares. The announcement comes after a significant increase in interest rates. I doubt PennyMac's current plan will go through as stated. It might, but I think there is a strong case against it.

PennyMac Mortgage Investment Trust announces that two of its preferred shares will not transition to a floating reference rate, impacting their dividend rates. The cost savings from this move are expected to be relatively small, and the company may face lawsuits as a result. The move is likely to damage investor goodwill and may affect future market demand for the company's securities.

PennyMac didn't earn enough in Q2 to cover its dividend. Investors should exercise caution if they're thinking of buying the shares.

While the top- and bottom-line numbers for PennyMac Mortgage (PMT) give a sense of how the business performed in the quarter ended June 2023, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

PennyMac Mortgage (PMT) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to loss of $0.88 per share a year ago.

Several REIT preferred issues have converted from fixed to floating interest rates, paying dividends at 3-month LIBOR plus 350 to 600 basis points. The share price performance of these issues upon conversion may provide insight into future investment strategies. The next issue up for call or conversion is PennyMac Mortgage Investment Trust, which currently offers an attractive dividend yield of 8.61%.

PennyMac Mortgage: The 12% Yield Comes With A 17% Discount To Book