Analyst Expectations For PennyMac Mortgage IT's Future

PennyMac Mortgage Investment Trust +1.15%

PennyMac Mortgage Investment Trust




Across the recent three months, 4 analysts have shared their insights on PennyMac Mortgage IT (NYSE:PMT), expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 2 1 0 0
Last 30D 0 0 1 0 0
1M Ago 0 2 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 0 0 0 0

Analysts have recently evaluated PennyMac Mortgage IT and provided 12-month price targets. The average target is $15.25, accompanied by a high estimate of $16.00 and a low estimate of $15.00. Observing a 1.67% increase, the current average has risen from the previous average price target of $15.00.

price target chart

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive PennyMac Mortgage IT. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jay McCanless Wedbush Maintains Neutral $15.00 -
Trevor Cranston JMP Securities Maintains Market Outperform $15.00 -
Trevor Cranston JMP Securities Maintains Market Outperform $15.00 -
Matt Howlett B. Riley Securities Raises Buy $16.00 $15.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PennyMac Mortgage IT. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PennyMac Mortgage IT compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of PennyMac Mortgage IT's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of PennyMac Mortgage IT's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on PennyMac Mortgage IT analyst ratings.

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Unveiling the Story Behind PennyMac Mortgage IT

PennyMac Mortgage Investment Trust is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The company's operations include activities such as the production and servicing of financial securities based on residential loans and the pooling and reselling of high-credit-quality mortgages. The company operates through four segments: correspondent production, credit-sensitive strategies, interest-rate-sensitive strategies, and corporate activities. The Credit sensitive strategies segment generates income via investments in CRT arrangements, subordinate MBS, distressed loans, and real estate.

Breaking Down PennyMac Mortgage IT's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: PennyMac Mortgage IT's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -17.74%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: PennyMac Mortgage IT's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 90.85% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): PennyMac Mortgage IT's ROE excels beyond industry benchmarks, reaching 2.62%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): PennyMac Mortgage IT's ROA stands out, surpassing industry averages. With an impressive ROA of 0.29%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: PennyMac Mortgage IT's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.4, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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