Street Calls of the Week
Catherine A. Lynch, a director at PennyMac Mortgage Investment Trust (NYSE:PMT), recently acquired additional shares in the company. According to a recent SEC filing, Lynch purchased a total of 948.9252 common shares of beneficial interest. The transactions, which took place on January 24, were executed at prices ranging from $12.5203 to $12.5687 per share, amounting to a total value of approximately $11,903. The $1.11 billion market cap company currently offers an attractive 12.5% dividend yield and has maintained dividend payments for 15 consecutive years, according to InvestingPro data.
These acquisitions were made under brokers’ automatic dividend reinvestment plans, as noted in the filing. Following these transactions, Lynch now holds a total of 38,580.9729 shares, which include both restricted stock units and common shares. The restricted stock units will be settled in an equal number of common shares upon vesting. Trading at 8.9x earnings and close to its Fair Value, PMT shows promising metrics. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of this dividend-focused REIT.
In other recent news, PennyMac Mortgage Investment Trust has been busy with significant financial developments. The company has secured a $1 billion financing deal with Citibank, an arrangement that bolsters its capacity to manage Fannie Mae (OTC:FNMA) mortgage servicing rights and related assets. The agreement formalizes a Series 2024-VF2 Note, structured as a repurchase agreement, and is part of PennyMac’s broader structured finance strategy.
Simultaneously, PennyMac has extended and amended its key management and servicing agreements through December 31, 2029, with automatic renewal options. This strategic move is integral to the ongoing operations and strategic management of the company’s investment portfolio.
In the third quarter, the company reported a GAAP EPS of $0.36 and a core EPS of $0.29, falling below B.Riley’s estimate. However, B.Riley maintains a Buy rating on PennyMac stock, citing potential benefits from the current economic environment. The company’s management has raised the 12-month run-rate EPS guidance from $0.33 to $0.37 and expects the current $0.40 dividend to eventually be covered by the core EPS.
These recent developments underscore PennyMac’s strategic efforts to strengthen its financial position, support its operations in the real estate finance sector, and lay the groundwork for future growth.
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