PennyMac Mortgage Investment Trust (PMT) Shares Fall 4.3% on July 11.

PennyMac Mortgage Investment Trust's (PMT) shares fell 4.3% to $12.58 on Jul 11. The stock is 16.05% below its 52-week high and 6.88% above its 52-week low. Based on analyst forecasts, the average target price is $13.86, indicating a 10.2% upside from the current price. The estimated GF Value for PMT in one year is $15.42, suggesting a 22.6% upside from the current price.

PennyMac Mortgage Investment Trust (PMT) saw its shares drop by 4.3% to $12.58 on July 11, 2025. This decline brings the stock 16.05% below its 52-week high of $14.98 and 6.88% above its 52-week low of $11.77. Analysts predict an average target price of $13.86, indicating a potential 10.2% upside from the current price. Additionally, the estimated GF Value for PMT in one year is $15.42, suggesting a 22.6% upside from the current price.

Market conditions and broader economic factors have likely contributed to the recent downturn in PMT's stock price. The company's exposure to interest rate-sensitive strategies, which constitute 58% of its equity, may have been negatively impacted by recent interest rate movements and credit spread widening [1].

Despite the recent decline, PennyMac's preferred shares, particularly the Series C preferred shares, continue to offer attractive dividend yields and safety. The Series C preferred shares, which trade at a par value discount in excess of 20%, have outperformed the iShares Preferred and Income Securities ETF (PFF) in 2025, delivering a gain of ~6% [1].

The company's total assets amount to $14.9 billion, with 9% funded by common equity and 4% by preferred equity, the remainder coming from debt. While PennyMac reported a loss of $0.01/share in the first quarter of 2025, largely due to fair value changes across credit-sensitive and interest rate-sensitive strategies, the cumulative preferred share par value of $560 million remains well-covered by the common equity market capitalization of $1.15 billion, presenting a common equity coverage ratio marginally above 2x [1].

Investors should also consider the medium-to-long-term risks associated with periods of market turmoil and rising interest rates. PennyMac's common stock has not fully recovered from the COVID-19 crash in 2020, and the company recorded an annual loss only once in the past ten years [1].

In conclusion, while PennyMac's stock price has fallen, the company's preferred shares, particularly the Series C preferred shares, continue to offer attractive dividend yields and safety. Investors should closely monitor market conditions and PennyMac's quarterly earnings reports to make informed investment decisions.

References:
[1] https://seekingalpha.com/article/4799485-pennymac-mortgage-investment-trust-series-c-preferred-shares-offer-safety-and-decent-upside
[2] https://www.wallstreetzen.com/stocks/us/nyse/pmt