PennyMac Mortgage Investment Trust (NYSE:PMT) Issues 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 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.07, Zacks reports. The firm had revenue of $33.20 million for the quarter, compared to analyst estimates of $96.96 million. PennyMac Mortgage Investment Trust had a return on equity of 9.53% and a net margin of 41.59%.

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 Stock Performance

PMT stock opened at $11.84 on Friday. The business has a 50 day moving average of $12.92 and a 200-day moving average of $12.48. The firm has a market cap of $1.03 billion, a PE ratio of 12.08, a P/E/G ratio of 1.11 and a beta of 1.27. PennyMac Mortgage Investment Trust has a 12-month low of $11.60 and a 12-month high of $14.93. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 4.72.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, December 26th were issued a $0.40 dividend. The ex-dividend date was Friday, December 26th. This represents a $1.60 annualized dividend and a dividend yield of 13.5%. PennyMac Mortgage Investment Trust’s dividend payout ratio is currently 163.27%.

Analysts Set New Price Targets

Several research firms recently weighed in on PMT. Weiss Ratings reissued a “hold (c-)” rating on shares of PennyMac Mortgage Investment Trust in a report on Monday, December 29th. Keefe, Bruyette & Woods upgraded PennyMac Mortgage Investment Trust from a “market perform” rating to an “outperform” rating and set a $13.50 target price for the company in a research report on Thursday, December 18th. Zacks Research raised PennyMac Mortgage Investment Trust from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 21st. Citigroup restated an “outperform” rating on shares of PennyMac Mortgage Investment Trust in a report on Thursday, January 22nd. Finally, UBS Group raised 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 report on Friday, October 24th. Three analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, PennyMac Mortgage Investment Trust currently has an average rating of “Hold” and a consensus target price of $13.75.

More PennyMac Mortgage Investment Trust News

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

• Positive Sentiment: Q4 EPS beat consensus — reported $0.48 vs. $0.41 expected, showing underlying profitability that exceeded analyst EPS estimates. PennyMac Mortgage (PMT) Q4 Earnings Beat Estimates
• Positive Sentiment: Management expects to complete ~30 securitizations in 2026 as it accelerates portfolio rotation — a strategic move that could improve funding flexibility and risk positioning over the year. PennyMac projects 30 securitizations in 2026
• Neutral Sentiment: The company filed its formal press release, slide deck and earnings call transcript (useful for digging into driver-level details, hedging, and portfolio composition). PennyMac Mortgage Investment Trust Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Earnings call transcript and slide deck provide management commentary on cash flow, hedging, and the securitization timeline — review for clarity on dividend coverage and expected NII trajectory. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue missed materially — reported revenue (~$33.2M) was well below analyst expectations (~$96.96M), raising questions about the sustainability of current cash flows that support the dividend. PennyMac Mortgage Faces Test of Dividend Strength After Revenue Decline
• Negative Sentiment: Market reacted sharply to the mixed print and revenue shortfall — several outlets report a steep share drop and elevated trading volume as investors reassess dividend risk and near-term earnings visibility. Shares plunge on worse-than-expected Q4 results

Insider Transactions at PennyMac Mortgage Investment Trust

In other news, CEO David Spector acquired 10,000 shares of PennyMac Mortgage Investment Trust stock in a transaction on Monday, November 17th. The stock was acquired at an average cost of $12.40 per share, with a total value of $124,000.00. Following the completion of the acquisition, the chief executive officer owned 357,794 shares in the company, valued at approximately $4,436,645.60. This trade represents a 2.88% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.92% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Advisory Services Network LLC purchased a new position in shares of PennyMac Mortgage Investment Trust during the third quarter worth about $50,000. Russell Investments Group Ltd. lifted its position in PennyMac Mortgage Investment Trust by 49.0% during the second quarter. Russell Investments Group Ltd. now owns 4,861 shares of the real estate investment trust’s stock valued at $63,000 after purchasing an additional 1,599 shares during the last quarter. Sei Investments Co. purchased a new position in PennyMac Mortgage Investment Trust in the 2nd quarter worth approximately $129,000. Tower Research Capital LLC TRC increased its holdings in shares of PennyMac Mortgage Investment Trust by 113.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 11,223 shares of the real estate investment trust’s stock worth $144,000 after buying an additional 5,954 shares during the last quarter. Finally, Ausdal Financial Partners Inc. bought a new position in shares of PennyMac Mortgage Investment Trust in the 3rd quarter worth $166,000. 67.38% of the stock is owned by institutional investors.

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.