Core Viewpoint - The article emphasizes the importance of value investing and highlights PennyMac Mortgage Investment Trust (PMT) as a strong candidate for value investors due to its attractive valuation metrics [1][3]. Company Summary - PennyMac Mortgage Investment Trust (PMT) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [2]. - PMT has a Forward P/E ratio of 9.34, significantly lower than the industry's average Forward P/E of 17, suggesting it may be undervalued [2]. - Over the past year, PMT's Forward P/E has fluctuated between 7.87 and 11.10, with a median of 9.88, indicating stable valuation metrics [2]. - The company has a P/CF ratio of 5.82, which is attractive compared to the industry's average P/CF of 8.77, further supporting the notion of undervaluation [2]. - PMT's P/CF has ranged from 5.60 to 10.50 over the past year, with a median of 7.45, reflecting its strong cash flow outlook [2]. Investment Outlook - The combination of PMT's low valuation metrics and strong earnings outlook positions it as one of the market's strongest value stocks, appealing to value investors [3].

Core Insights - PennyMac Mortgage (PMT) reported a revenue of $80.86 million for the quarter ended September 2024, reflecting a 50.5% decrease compared to the same period last year [1] - The earnings per share (EPS) was $0.36, down from $0.51 in the year-ago quarter, with a surprise of -2.70% against the consensus estimate of $0.37 [1] - The reported revenue was also below the Zacks Consensus Estimate of $93.75 million, resulting in a surprise of -13.75% [1] Financial Performance Metrics - Net interest income (expense) was reported at -$7.44 million, better than the estimated -$19.15 million [1] - Loan origination fees amounted to $6.64 million, exceeding the estimated $4.65 million [1] - Net loan servicing fee was -$85.08 million, significantly worse than the estimated -$19.47 million [1] - Net gains (losses) on loans acquired for sale were $20.06 million, slightly below the average estimate of $23.13 million [1] Stock Performance - Over the past month, shares of PennyMac Mortgage have returned -2.5%, contrasting with the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]

Financial Data and Key Metrics Changes - Net income to common shareholders was $31 million, or diluted earnings per share of $0.36, with an annualized return on common equity of 9% [3][10] - Book value per share at September 30 was $15.85, down slightly from the end of the prior quarter [3] - PMT's run rate reflects a quarterly average of $0.37 per share, up from $0.33 per share last quarter, primarily driven by the decline in short-term interest rates [14] Business Line Data and Key Metrics Changes - Credit sensitive strategies contributed $26 million in pre-tax income, with $17 million from organically created CRT investments [10] - Interest rate sensitive strategies contributed pre-tax income of $500,000, with MSR fair value decreasing by $84 million [11] - Total correspondent loan acquisition volume was $26 billion in the third quarter, up 15% from the prior quarter, with conventional loans acquired totaling $5.9 billion, up 167% from the prior quarter [12] Market Data and Key Metrics Changes - PMT accounted for approximately 7% of the total production market in the last year, with a leadership position in the correspondent channel [8] - The weighted average current loan-to-value ratio for mortgages underlying PMT's investments is below 50% [6] Company Strategy and Development Direction - PMT is focusing on optimizing capital allocation while evaluating emerging investment opportunities in the private label securitization market [7] - The company aims to increase investment in credit-sensitive assets, particularly in the context of evolving mortgage landscapes [20] - PMT plans to close securitizations of agency-eligible non-owner occupied loans in the fourth quarter and another similar transaction in the first quarter next year [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of MSR investments due to low delinquency rates and substantial home equity accumulation [5] - The outlook for current investments in organically created CRT remains favorable, with expectations for continued stable cash flows [10] - Management noted that the evolving mortgage landscape presents new opportunities for PMT to be a material participant [7] Other Important Information - PMT effectively completed the refinancing of $457 million of CRT and MSR term notes, resulting in lower effective costs and extended durations [4] - Delinquency rates for borrowers underlying PMT's MSR portfolio remain low, with servicing advances outstanding decreasing to $71 million [11] Q&A Session Summary Question: Impact of yield curve steepness on dividend policy - Management indicated that a steepening yield curve could enhance earnings power, which would influence dividend evaluations [16][18] Question: Opportunities for credit-sensitive strategies - Management acknowledged good opportunities to increase investment in credit-sensitive assets, particularly in securitization activities [19][20] Question: Returns on jumbo loans and second liens - Management confirmed that jumbo loans are getting close to return targets, while second liens still have a way to go [22][25] Question: Capital deployment into new opportunities - Management stated that capital from CRT investments could be redeployed into credit-sensitive strategies, maintaining a constant level of MSR portfolio [26][29] Question: Future retention of conventional correspondent production - Management indicated a reduction in retention percentage to free up capital for securitization efforts, with potential to increase retention if returns are favorable [28][29] Question: Liquidity for debt repayment - Management confirmed that liquidity is in place for the repayment of $210 million in exchangeable senior notes due in November [14][35]

PennyMac Mortgage (PMT) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.70%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.34 per share when it actually produced earnings of $0.17, delivering a surprise of -50%.Over the last four quart ...

Exhibit 99.1 PennyMac Mortgage Investment Trust Reports Third Quarter 2024 Results WESTLAKE VILLAGE, Calif. – October 22, 2024 – PennyMac Mortgage Investment Trust (NYSE: PMT) today reported net income attributable to common shareholders of $31.0 million, or $0.36 per common share on a diluted basis for the third quarter of 2024, on net investment income of $80.9 million. PMT previously announced a cash dividend for the third quarter of 2024 of $0.40 per common share of beneficial interest, which was declar ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on ke ...

You can get access to everything we have to offer right now. Try our service and decide for yourself. I will be going over PMT-A (NYSE: PMT.PR.A ) today, which is a preferred share from PennyMac Mortgage Investment Trust ( PMT ). Before diving into the preferred shares, I'd like to touch on an event Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article mysel ...

mashabuba/E+ via Getty Images PennyMac Mortgage Investment Trust (PMT) is a mortgage real estate investment trust, or mREIT. They own some mortgage-backed securities and some mortgage servicing rights. Preferred Shares We are discussing PennyMac today because of the preferred shares. There are three preferred shares from PennyMac. They are PMT-A (PMT.PR.A), PMT-B (NYSE:PMT.PR.B), and PMT-C (PMT.PR.C). The most interesting shares are PMT-A and PMT-B. However, I will also touch on PMT-C briefly. PMT-C is a fi ...

VANCOUVER, BC, Aug. 21, 2024 /PRNewswire/ - August 22, 2024 – Sydney, Australia Patriot Battery Metals Inc. (the "Company" or "Patriot") (TSX: PMET) (ASX: PMT) (OTCQX: PMETF) (FSE: R9GA) advises that Ken Brinsden, the Company's President, CEO and Managing Director, will host a live investor webinar today, to present the findings of the Preliminary Economic Assessment on the Shaakichiuwaanaan Project, reported in the announcement dated 21 August, "PEA Highlights Shaakichiuwaanaan Project as a Potential North ...

PennyMac Mortgage Investment Trust (NYSE:PMT) Q2 2024 Earnings Conference Call July 23, 2024 6:00 PM ET Company Participants David Spector - Chairman and CEO Dan Perotti - CFO Conference Call Participants Jason Weaver - Jones Trading Doug Harter - UBS Crispin Love - Piper Sandler Bose George - KBW Matthew Howlett - B. Riley Financial Michael Kaye - Wells Fargo Operator Good afternoon, and welcome to PennyMac Mortgage Investment Trust Second Quarter Earnings Call. Additional materials, including the presenta ...