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

by · The Markets Daily

PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) was the target of unusually large options trading on Friday. Stock traders purchased 10,207 call options on the company. This is an increase of approximately 2,040% compared to the typical daily volume of 477 call options.

Key PennyMac Mortgage Investment Trust News

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

  • Positive Sentiment: PMT reported quarterly EPS of $0.35, exceeding consensus estimates near $0.30–$0.31. However, the result compares with $0.55 a year earlier, indicating weaker year-over-year profitability. PennyMac Mortgage Tops Q3 Earnings Estimates
  • Positive Sentiment: The trust increased its share-repurchase authorization by $130 million, leaving more than $200 million available. Buybacks could support per-share value and signal management believes the stock is undervalued. PennyMac Reports Third-Quarter Loss
  • Positive Sentiment: Unusual options activity saw investors acquire 10,207 call options, roughly 20 times average call volume. This suggests speculative bullish interest, although options activity alone is not confirmation of a fundamental turnaround.
  • Positive Sentiment: PMT completed eight securitizations and generated $167 million of net new investments from private-label securitizations. KBRA also assigned preliminary ratings to 44 classes of notes in a $364.4 million prime residential mortgage-backed securities transaction sponsored by PennyMac. KBRA Assigns Preliminary Ratings
  • Neutral Sentiment: Leadership changes include Kevin Ryan becoming CFO on January 1, 2027, while President and Chief Mortgage Banking Officer Doug Jones plans to retire June 30, 2027. The transition adds uncertainty but may also represent planned succession. PennyMac Announces CFO Changes
  • Negative Sentiment: PMT reported a $36 million net loss attributable to common shareholders, or $0.41 per diluted share. Net investment income fell to $36 million from $73 million in the prior quarter and $99 million a year earlier, while book value per share declined 5% to $14.03. PennyMac Reports Third-Quarter Loss
  • Negative Sentiment: Management plans to reduce the fourth-quarter dividend, despite projecting approximately $0.38 of run-rate return potential over the next four quarters. The dividend cut is likely weighing on income-focused investors. PennyMac Projects Run-Rate Return Potential

PennyMac Mortgage Investment Trust Trading Up 1.5%

PMT traded up $0.11 during trading on Friday, reaching $7.49. The company had a trading volume of 5,172,585 shares, compared to its average volume of 1,510,197. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 9.18. The business has a 50 day simple moving average of $8.26 and a 200-day simple moving average of $10.45. The stock has a market cap of $653.14 million, a P/E ratio of 5.27, a PEG ratio of 0.41 and a beta of 1.20. PennyMac Mortgage Investment Trust has a 52 week low of $6.70 and a 52 week high of $13.81.

PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The real estate investment trust reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.30 by $0.05. The business had revenue of $31.00 million for the quarter, compared to analysts’ expectations of $95.01 million. PennyMac Mortgage Investment Trust had a net margin of 47.79% and a return on equity of 12.50%. On average, equities analysts anticipate that PennyMac Mortgage Investment Trust will post 1.02 EPS for the current fiscal year.

PennyMac Mortgage Investment Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Thursday, October 8th were paid a $0.40 dividend. The ex-dividend date of this dividend was Thursday, October 8th. This represents a $1.60 annualized dividend and a yield of 21.4%. PennyMac Mortgage Investment Trust’s dividend payout ratio (DPR) is presently 347.83%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Piper Sandler lowered their target price on PennyMac Mortgage Investment Trust from $10.00 to $9.00 and set a “neutral” rating for the company in a research report on Friday, October 9th. Citizens Jmp reduced their price target on shares of PennyMac Mortgage Investment Trust from $15.00 to $12.50 and set a “market outperform” rating on the stock in a research report on Thursday, October 15th. Zacks Research raised shares of PennyMac Mortgage Investment Trust from a “strong sell” rating to a “hold” rating in a research note on Friday, October 16th. Citigroup reiterated a “market outperform” rating on shares of PennyMac Mortgage Investment Trust in a research report on Thursday, October 15th. Finally, Weiss Ratings cut shares of PennyMac Mortgage Investment Trust from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, October 8th. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $10.92.

Read Our Latest Stock Report on PennyMac Mortgage Investment Trust

Institutional Investors Weigh In On PennyMac Mortgage Investment Trust

Several hedge funds and other institutional investors have recently modified their holdings of PMT. GraniteShares Advisors LLC boosted its position in PennyMac Mortgage Investment Trust by 40.4% in the 3rd quarter. GraniteShares Advisors LLC now owns 311,609 shares of the real estate investment trust’s stock valued at $2,455,000 after buying an additional 89,605 shares during the period. Samalin Investment Counsel LLC grew its stake in PennyMac Mortgage Investment Trust by 51.0% in the 3rd quarter. Samalin Investment Counsel LLC now owns 25,224 shares of the real estate investment trust’s stock worth $199,000 after acquiring an additional 8,521 shares in the last quarter. Signaturefd LLC increased its position in shares of PennyMac Mortgage Investment Trust by 186.5% during the third quarter. Signaturefd LLC now owns 7,079 shares of the real estate investment trust’s stock worth $56,000 after acquiring an additional 4,608 shares during the period. Inspire Investing LLC increased its position in shares of PennyMac Mortgage Investment Trust by 33.9% during the third quarter. Inspire Investing LLC now owns 80,367 shares of the real estate investment trust’s stock worth $633,000 after acquiring an additional 20,351 shares during the period. Finally, Nisa Investment Advisors LLC increased its position in shares of PennyMac Mortgage Investment Trust by 128.8% during the third quarter. Nisa Investment Advisors LLC now owns 41,631 shares of the real estate investment trust’s stock worth $328,000 after acquiring an additional 23,432 shares during the period. 67.38% of the stock is currently owned by hedge funds and other institutional investors.

PennyMac Mortgage Investment Trust Company Profile

(Get Free Report)

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

PMT’s business activities include acquiring and managing mortgage loans, mortgage-backed securities and related investments. Through its correspondent production strategy, the trust invests in newly originated residential mortgage loans purchased from correspondent lenders.

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