Pennymac Mortgage Investment Preferred Stock Buy Hold or Sell Recommendation
| PMT-PA Preferred Stock | USD 24.69 0.09 0.37% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding PennyMac Mortgage Investment is 'Cautious Hold'. Macroaxis provides PennyMac Mortgage buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PMT-PA positions.
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. In addition, we conduct extensive research on individual companies such as PennyMac and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards 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 board of governors.
PennyMac |
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
 |  |
Cautious Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
PennyMac Mortgage Trading Alerts and Improvement Suggestions
| PennyMac Mortgage has high likelihood to experience some financial distress in the next 2 years | |
| PennyMac Mortgage has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| PennyMac Mortgage Investment has accumulated about 227.01 M in cash with (2.82 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.34. |
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 | 0.03 | Value At Risk | -0.77 | Potential Upside | 1.31 | Standard Deviation | 0.64 |
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 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 Real Estate 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 preferred 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 preferred 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 | 0.02 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 0.65 | |
Ir | Information ratio | -0.1 |
PennyMac Mortgage Volatility Alert
PennyMac Mortgage Investment exhibits very low volatility with skewness of 0.13 and kurtosis of 1.62. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PennyMac Mortgage's preferred 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 preferred 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 preferred 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 |
| Fundamentals | PennyMac Mortgage | Peer Average |
| Return On Equity | -0.0339 | -0.31 |
| Return On Asset | -0.0053 | -0.14 |
| Profit Margin | (0.24) % | (1.27) % |
| Operating Margin | 0.21 % | (5.51) % |
| Current Valuation | 13.67 B | 16.62 B |
| Shares Outstanding | 60.95 M | 571.82 M |
| Shares Owned By Institutions | 23.85 % | 39.21 % |
| Number Of Shares Shorted | 9.42 K | 4.71 M |
| Price To Earning | 12.91 X | 28.72 X |
| Price To Sales | 35.18 X | 11.42 X |
| Revenue | 81.11 M | 9.43 B |
| Gross Profit | 128.23 M | 27.38 B |
| EBITDA | 349.4 M | 3.9 B |
| Net Income | 56.85 M | 570.98 M |
| Cash And Equivalents | 227.01 M | 2.7 B |
| Cash Per Share | 3.34 X | 5.01 X |
| Total Debt | 4.49 B | 5.32 B |
| Debt To Equity | 389.40 % | 48.70 % |
| Current Ratio | 7.78 X | 2.16 X |
| Book Value Per Share | 15.99 X | 1.93 K |
| Cash Flow From Operations | (2.82 B) | 971.22 M |
| Short Ratio | 0.93 X | 4.00 X |
| Earnings Per Share | (0.73) X | 3.12 X |
| Number Of Employees | 10 | 18.84 K |
| Beta | 1.3 | -0.15 |
| Market Capitalization | 1.53 B | 19.03 B |
| Total Asset | 13.77 B | 29.47 B |
| Annual Yield | 0.08 % | |
| Net Asset | 13.77 B |
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 Preferred 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.
Use Investing Ideas to Build Portfolios
In addition to having PennyMac Mortgage in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Growth Funds Theme or any other thematic opportunities.
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Other Information on Investing in PennyMac Preferred Stock
PennyMac Mortgage financial ratios help investors to determine whether PennyMac Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in PennyMac with respect to the benefits of owning PennyMac Mortgage security.