Pennymac Mortgage Investment Stock Buy Hold or Sell Recommendation

PMT Stock  USD 13.43  0.09  0.67%   
Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding PennyMac Mortgage Investment is 'Strong Buy'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell PennyMac Mortgage Investment given historical horizon and risk tolerance towards PennyMac Mortgage. When Macroaxis issues a 'buy' or 'sell' recommendation for PennyMac Mortgage Investment, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out PennyMac Mortgage Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as PennyMac and provide practical buy, sell, or hold advice based on investors' constraints. PennyMac Mortgage Investment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Execute PennyMac Mortgage Buy or Sell Advice

The PennyMac recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on PennyMac Mortgage Investment. Macroaxis does not own or have any residual interests in PennyMac Mortgage Investment or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute PennyMac Mortgage's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell PennyMac MortgageBuy PennyMac Mortgage
Strong Buy

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon PennyMac Mortgage Investment has a Risk Adjusted Performance of 0.0146, Jensen Alpha of (0.07), Total Risk Alpha of (0.14), Sortino Ratio of (0.12) and Treynor Ratio of 0.0086
Our trade recommendations tool can cross-verify current analyst consensus on PennyMac Mortgage and to analyze the firm potential to grow in the current economic cycle. To make sure PennyMac Mortgage is not overpriced, please check all PennyMac Mortgage fundamentals, including its revenue, earnings per share, five year return, as well as the relationship between the total debt and total asset . Given that PennyMac Mortgage has a price to earning of 56.52 X, we recommend you to check out PennyMac Mortgage market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

PennyMac Mortgage Trading Alerts and Improvement Suggestions

PennyMac Mortgage generated a negative expected return over the last 90 days
PennyMac Mortgage Investment has 10.47 B in debt with debt to equity (D/E) ratio of 5.24, demonstrating that the company may be unable to create cash to meet all of its financial commitments. PennyMac Mortgage has a current ratio of 0.84, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for PennyMac to invest in growth at high rates of return.
About 69.0% of PennyMac Mortgage shares are owned by institutional investors
On 25th of October 2024 PennyMac Mortgage paid $ 0.4 per share dividend to its current shareholders
Latest headline from news.google.com: PennyMac Mortgage Investment Trust Shares Bought by Principal Financial Group Inc. - MarketBeat

PennyMac Mortgage Returns Distribution Density

The distribution of PennyMac Mortgage's historical returns is an attempt to chart the uncertainty of PennyMac Mortgage's future price movements. The chart of the probability distribution of PennyMac Mortgage daily returns describes the distribution of returns around its average expected value. We use PennyMac Mortgage Investment price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of PennyMac Mortgage returns is essential to provide solid investment advice for PennyMac Mortgage.
Mean Return
0.02
Value At Risk
-1.78
Potential Upside
1.44
Standard Deviation
0.91
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of PennyMac Mortgage historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

PennyMac Stock Institutional Investors

The PennyMac Mortgage's institutional investors refer to entities that pool money to purchase PennyMac Mortgage's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
Shares
Bank Of New York Mellon Corp2024-06-30
792.4 K
Mirae Asset Global Etfs Holdings Ltd.2024-06-30
668.2 K
Van Eck Associates Corporation2024-06-30
622.1 K
Norges Bank2024-06-30
582.3 K
Allianz Asset Management Ag2024-06-30
570.5 K
First Trust Advisors L.p.2024-06-30
529.9 K
Principal Financial Group Inc2024-09-30
506.3 K
Dana Investment Advisors Inc2024-09-30
472.6 K
Wolverine Asset Management Llc2024-09-30
461.3 K
Blackrock Inc2024-06-30
14.9 M
Vanguard Group Inc2024-09-30
9.7 M
Note, although PennyMac Mortgage's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

PennyMac Mortgage Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash44.2M(46.4M)1.3M52.9M169.2M177.7M
Free Cash Flow(3.0B)671.7M(2.8B)1.8B1.3B1.4B
Other Non Cash Items(3.3B)(3.8M)(2.4B)1.8B1.0B1.1B
Capital Expenditures79K99.2M75.0M28.8M14.6M13.9M
Net Income226.4M52.4M56.9M(73.3M)199.7M111.4M
End Period Cash Flow104.1M57.7M59.0M111.9M281.1M295.1M
Dividends Paid165.9M176.5M214.1M215.4M182.4M157.9M
Depreciation81.6M94.3M383.7M6.7M110K104.5K
Change To Netincome(3.3B)(20.5M)(2.4B)1.8B1.6B1.5B
Investments(704.7M)(15.4M)(40.7M)(1.9B)(464.3M)(487.5M)
Net Borrowings3.1B(468.8M)1.8B453.9M522.0M636.9M

PennyMac Mortgage Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to PennyMac Mortgage or Mortgage Real Estate Investment Trusts (REITs) sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that PennyMac Mortgage's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a PennyMac stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.07
β
Beta against Dow Jones0.63
σ
Overall volatility
0.88
Ir
Information ratio -0.13

PennyMac Mortgage Volatility Alert

PennyMac Mortgage Investment has low volatility with Treynor Ratio of 0.01, Maximum Drawdown of 4.64 and kurtosis of 0.67. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PennyMac Mortgage's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact PennyMac Mortgage's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

PennyMac Mortgage Fundamentals Vs Peers

Comparing PennyMac Mortgage's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze PennyMac Mortgage's direct or indirect competition across all of the common fundamentals between PennyMac Mortgage and the related equities. This way, we can detect undervalued stocks with similar characteristics as PennyMac Mortgage or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of PennyMac Mortgage's fundamental indicators could also be used in its relative valuation, which is a method of valuing PennyMac Mortgage by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare PennyMac Mortgage to competition
FundamentalsPennyMac MortgagePeer Average
Return On Equity0.0861-0.31
Return On Asset0.0127-0.14
Profit Margin0.21 %(1.27) %
Operating Margin0.1 %(5.51) %
Current Valuation12.09 B16.62 B
Shares Outstanding86.86 M571.82 M
Shares Owned By Insiders1.00 %10.09 %
Shares Owned By Institutions69.00 %39.21 %
Number Of Shares Shorted4.48 M4.71 M
Price To Earning56.52 X28.72 X
Price To Book0.84 X9.51 X
Price To Sales1.45 X11.42 X
Revenue725.87 M9.43 B
Gross Profit(321.2 M)27.38 B
EBITDA1.28 B3.9 B
Net Income199.65 M570.98 M
Cash And Equivalents349.38 M2.7 B
Cash Per Share3.86 X5.01 X
Total Debt10.47 B5.32 B
Debt To Equity5.24 %48.70 %
Current Ratio0.86 X2.16 X
Book Value Per Share16.06 X1.93 K
Cash Flow From Operations1.34 B971.22 M
Short Ratio6.39 X4.00 X
Earnings Per Share1.38 X3.12 X
Price To Earnings To Growth2.12 X4.89 X
Target Price14.81
Number Of Employees718.84 K
Beta1.48-0.15
Market Capitalization1.17 B19.03 B
Total Asset13.11 B29.47 B
Retained Earnings(508.69 M)9.33 B
Working Capital(3.78 B)1.48 B
Note: Disposition of 5564 shares by David Spector of PennyMac Mortgage at 13.81 subject to Rule 16b-3 [view details]

PennyMac Mortgage Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as PennyMac . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About PennyMac Mortgage Buy or Sell Advice

When is the right time to buy or sell PennyMac Mortgage Investment? Buying financial instruments such as PennyMac Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Additional Tools for PennyMac Stock Analysis

When running PennyMac Mortgage's price analysis, check to measure PennyMac Mortgage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PennyMac Mortgage is operating at the current time. Most of PennyMac Mortgage's value examination focuses on studying past and present price action to predict the probability of PennyMac Mortgage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PennyMac Mortgage's price. Additionally, you may evaluate how the addition of PennyMac Mortgage to your portfolios can decrease your overall portfolio volatility.