PennyMac Mortgage Investment Trust (NYSE:PMT) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

PennyMac Mortgage Investment Trust (NYSE:PMT) posted its quarterly earnings data on Thursday. The real estate investment trust reported $0.48 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.07, Zacks reports. The business had revenue of $33.20 million during the quarter, compared to the consensus estimate of $96.96 million. PennyMac Mortgage Investment Trust had a return on equity of 9.01% and a net margin of 37.92%.

Here are the key takeaways from PennyMac Mortgage Investment Trust’s conference call:

• PMT reported strong Q4 results with $42 million net income to common shareholders, $0.48 diluted EPS (covering the $0.40 quarterly dividend), a 13% annualized ROE, and book value rising to $15.25.
• The company sharply accelerated private-label securitizations in 2025—completing 19 deals totaling $6.7 billion UPB and growing retained investments to $528 million—and expects roughly 30 securitizations in 2026 with targeted low- to mid-teens ROEs.
• PMT actively rotated capital into higher-return assets—buying $876 million of agency floating-rate MBS and selling $195 million of opportunistic GSE CRTs whose forward returns fell below targets—to focus on investments with targeted ROEs of 13%–15%.
• Interest-rate-sensitive income was pressured by elevated prepayments and MSR runoff in Q4 (MSR fair value dynamics partly offset by hedges), and the correspondent production segment posted a pre-tax loss, signaling near-term headwinds for that strategy.

PennyMac Mortgage Investment Trust Trading Up 0.1%

PMT opened at $13.50 on Friday. PennyMac Mortgage Investment Trust has a 1-year low of $11.60 and a 1-year high of $14.93. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 4.72. The company has a market cap of $1.17 billion, a P/E ratio of 14.84, a price-to-earnings-growth ratio of 1.11 and a beta of 1.27. The company has a fifty day moving average price of $12.94 and a two-hundred day moving average price of $12.49.

PennyMac Mortgage Investment Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, January 23rd. Shareholders of record on Friday, December 26th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 11.9%. The ex-dividend date was Friday, December 26th. PennyMac Mortgage Investment Trust’s dividend payout ratio (DPR) is presently 175.82%.

Insider Activity

In other news, CEO David Spector bought 10,000 shares of PennyMac Mortgage Investment Trust stock in a transaction dated Monday, November 17th. The stock was bought at an average cost of $12.40 per share, for a total transaction of $124,000.00. Following the purchase, the chief executive officer directly owned 357,794 shares in the company, valued at approximately $4,436,645.60. This represents a 2.88% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.92% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisory Services Network LLC purchased a new position in PennyMac Mortgage Investment Trust during the 3rd quarter worth $50,000. Caxton Associates LLP boosted its holdings in PennyMac Mortgage Investment Trust by 198.2% during the third quarter. Caxton Associates LLP now owns 49,759 shares of the real estate investment trust’s stock worth $610,000 after purchasing an additional 33,073 shares during the last quarter. Dark Forest Capital Management LP grew its position in PennyMac Mortgage Investment Trust by 61.4% in the 3rd quarter. Dark Forest Capital Management LP now owns 192,921 shares of the real estate investment trust’s stock worth $2,365,000 after purchasing an additional 73,355 shares in the last quarter. Verition Fund Management LLC increased its stake in PennyMac Mortgage Investment Trust by 16.7% in the 3rd quarter. Verition Fund Management LLC now owns 51,924 shares of the real estate investment trust’s stock valued at $637,000 after buying an additional 7,424 shares during the last quarter. Finally, Millennium Management LLC grew its holdings in shares of PennyMac Mortgage Investment Trust by 41.8% in the third quarter. Millennium Management LLC now owns 1,339,158 shares of the real estate investment trust’s stock valued at $16,418,000 after acquiring an additional 394,497 shares in the last quarter. Institutional investors own 67.38% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have weighed in on PMT shares. Citigroup reissued an “outperform” rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, January 22nd. UBS Group upped their price objective on shares of PennyMac Mortgage Investment Trust from $13.00 to $13.50 and gave the company a “neutral” rating in a research note on Friday, October 24th. Citizens Jmp decreased their price objective on shares of PennyMac Mortgage Investment Trust from $15.50 to $15.00 and set a “market outperform” rating for the company in a research report on Thursday, January 22nd. Weiss Ratings reissued a “hold (c-)” rating on shares of PennyMac Mortgage Investment Trust in a research note on Monday, December 29th. Finally, Keefe, Bruyette & Woods raised shares of PennyMac Mortgage Investment Trust from a “market perform” rating to an “outperform” rating and set a $13.50 price target on the stock in a research report on Thursday, December 18th. Three investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $13.75.

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.