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PMTPennyMac Mortgage Investment TrSell5.1·$10.81-3.74%
SellModerate Confidence
Investment thesis

PennyMac Mortgage Investment Trust is a below-investable-universe mortgage REIT with a market cap of only $0.88 billion, inconsistent earnings delivery (2 beats and 2 misses with a -25.3% average surprise), and revenue declining 24% year-over-year — making it unsuitable for analysis at standard investment thresholds.

Thesis pillars

  • Inconsistent Earnings DeliveryStable
  • Below Investable ThresholdStable
  • Revenue Decline TrendStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

PennyMac Mortgage Investment Tr (PMT) Stock Analysis

Recovery setup

SellVALUE-TRAP 2/5Moderate Confidence

Real Estate · REIT - Mortgage

Sell if holding. Analyst target reached at $10.81 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Counterparty: PennyMac Financial Services (PFSI) management and servicing.

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in residential mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production segments. The... Read more

$10.81+3.5% A.UpsideScore 5.1/10#18 of 24 REIT - Mortgage
QualityF-score4 / 9FCF yield
IncomeYield14.80%(5y avg 12.21%)Payout137.93%
Stop $10.13Target $11.19(resistance)A.R:R -0.3:1
Analyst target$12.11+12.0%7 analysts
$11.19our TP
$10.81price
$12.11mean
$15

Sell if holding. Analyst target reached at $10.81 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Counterparty: PennyMac Financial Services (PFSI) management and servicing. Chart setup: Death cross but MACD improving, RSI 67. Score 5.1/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 17d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-06
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 21, 202617d to earnings· next earnings call

Thesis

Rewards
Margin of safety: 38%
Risks
Concentration risk — Counterparty: PennyMac Financial Services (PFSI) management and servicing
Analyst target reached - limited upside remaining
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)9.3
P/E (Fwd)7.3
Mkt Cap$943M
EV/EBITDA
Profit Mgn21.1%
ROE7.6%
Rev Growth-24.1%
Beta1.09
Dividend14.80%
Rating analysts13

Quality Signals

Piotroski F4/9

Options Flow

P/C1.00neutral
IV130%elevated

Concentration Risks(10-K Item 1A)

  • HIGHcounterpartyPennyMac Financial Services (PFSI) management and servicing
    10-K Item 1: 'The management of our business and execution of our operations are performed on our behalf by subsidiaries of PennyMac Financial Services, Inc. (“PFSI”).'

Material Events(8-K, last 90d)

  • 2026-06-16Item 5.02LOW
    Board of Trustees elected Scott Sauer as a Class III Trustee effective June 15, 2026, to serve until the 2027 Annual Meeting. Routine board appointment.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Earnings History
3.3
Erm
3.5
Earnings Timing
5.0
Dividend Safety
5.2
Earnings concerns: 2B/2MDividend: 1480.0%

Revenue shrinking — -24.1% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Earnings Growth
7.7
Declining revenue: -24%
GatesA.R:R -0.3=NEGATIVEDeath cross (50MA < 200MA)Executive change: officer departure/appointmentMomentum 7.0>=5.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 17d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
67 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $9.83Resistance $11.42

Price Targets

$10
$11
A.Upside+3.5%
A.R:R-0.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-2.6% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-21 (17d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is PMT stock a buy right now?

Sell if holding. Analyst target reached at $10.81 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Counterparty: PennyMac Financial Services (PFSI) management and servicing. Chart setup: Death cross but MACD improving, RSI 67. Prior stop was $10.13. Score 5.1/10, moderate confidence.

What is the PMT stock price target?

Take-profit target: $11.19 (+3.5% upside). Prior stop was $10.13. Stop-loss: $10.13.

What are the risks of investing in PMT?

Concentration risk — Counterparty: PennyMac Financial Services (PFSI) management and servicing; Analyst target reached - limited upside remaining; Consecutive earnings misses (2).

Is PMT overvalued or undervalued?

PennyMac Mortgage Investment Tr trades at a P/E of 9.3 (forward 7.3). TrendMatrix value score: 6.2/10. Verdict: Sell.

What do analysts say about PMT?

13 analysts cover PMT with a consensus score of 3.4/5. Average price target: $12.

What does PennyMac Mortgage Investment Tr do?PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in residential mortgage-related assets in...

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in residential mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production segments. The Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements and subordinate and credit-linked mortgage-backed securities (MBS). The Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, agency and senior non-agency MBS, and collateralized mortgage obligations (CMOs), as well as interest rate hedging activities. The Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit quality loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored enterprises. It has elected to be taxed as a real estate investment trust (REIT). It is not subject to U.S. federal income tax on the REIT taxable income it distributes to its shareholders. PennyMac Mortgage Investment Trust was incorporated in 2009 and is headquartered in Westlake Village, California.

Related stocks: RITM (Rithm Capital Corp.) · EFC (Ellington Financial Inc.) · ORC (Orchid Island Capital, Inc.) · ADAM (Adamas Trust, Inc.) · FBRT (Franklin BSP Realty Trust, Inc.)
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