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There are 2 articles on this stock available only to PRO subscribers.
Business Wire (Mar 24, 2014)
Business Wire (Feb 10, 2014)
Business Wire (Feb 5, 2014)
PennyMac Mortgage Investment Trust Announces Date for Release of Fourth Quarter 2013 and Full-Year 2013 ResultsBusiness Wire (Jan 27, 2014)
Business Wire (Dec 27, 2013)
at MarketWatch.com (Jun 5, 2012)
at CNBC.com (Dec 1, 2011)
at CNBC.com (Nov 21, 2011)
at MarketWatch.com (Oct 26, 2010)
at CNBC.com (Aug 4, 2010)
PMT vs. ETF Alternatives
Friday, Feb 712:55 PM
Friday, Feb 712:55 PM| 3 Comments
- Looking golden at the moment is Compass Point's Kevin Barker, who stepped into yesterday's major decline in the specialty servicers with an upgrade to Ocwen Financial (OCN +3.9%). The decline was sparked by a story - later confirmed by Ocwen - that Ben Lawsky's NY Dept. of Financial Services had blocked Ocwen's purchase of MSR's from Wells Fargo.
- If Lawsky's concern is Ocwen's ability to properly service a massive influx of new loans, this isn't an issue, says Barker as the company can take steps to ensure compliance. If Lawsky is upset about Ocwen's current servicing practices, that's a more complicated issue, but Barker doesn't believe this to be so.
- He's got a price target of $60 assuming the Wells deal gets done and Ocwen continues buying MSRs, and utilizes free cash flow for stock repurchases or an accretive acquisition.
- Down 14% at one point yesterday, Ocwen is back to near where it was before the news hit. Also bouncing back are Nationstar (NSM +8.3%) and Walter Investment (WAC +3.1%).
- Others of interest: PennyMac Mortgage (PMT +0.7%), New Residential (NRZ +1.2%).
Tuesday, Feb 411:51 AM
Tuesday, Feb 411:51 AM| 28 Comments
- Addressing an analyst cadre somewhat uncomfortable with American Capital's (AGNC +1.6%) new policy of purchasing the common stock of its agency mREIT competitors (Wells' Joel Houck: Do you know their hedging strategies? What happens when one blows up?), CIO Gary Kain says the discounts to asset value are so great as to mitigate much of the risk.
- Kain does acknowledge some risks though, and reminds that the purchase program is but a small slice of AGNC's overall portfolio ($400M of others' stock bought so far vs. nearly $600M of AGNC buybacks just in Q4).
- For now, there won't be any disclosure of which names American Capital is buying - a position also not sitting well with those on the call. Should the positions get large enough though, regulatory filings might be required.
- Kain also reminds that AGNC isn't just boosting risk with these purchases - instead it's selling MBS at 100 cents on the dollar to buy them back (via other mREITs) at somewhere in the area of 80 cents on the dollar.
- Most of the mREIT sector (REM +0.7%) is ahead again today - Armour (ARR +0.9%), CYS (CYS +2.8%), Hatteras (HTS +1.6%), American Capital Mortgage (MTGE +0.6%), PennyMac (PMT +1.2%) - but Annaly (NLY -0.6%) lags, perhaps as investors feel it was far more conservatively positioned going into 2014 than AGNC was.
- Earnings call is still ongoing
- Previous coverage
Thursday, Nov 72013, 10:32 AM
Thursday, Nov 72013, 10:32 AM| Comment!
- PennyMac Mortgage Investment (PMT -5.9%) slumps after a weak Q3 in which correspondent lending revenues fell to $18.9M, a 63% decline from Q2. Gain on sale on mortgages fell to $11M from $44.4M. The pretax loss in correspondent lending of $300K compared to $28.1 of income in Q2.
- Q3 earnings presentation slides.
- The company was able to deploy $350M in capital, acquiring 2 pools of nonperforming loans with $930M in UPB, completing a $550.5M jumbo loan securitization, and completing its initial investment in excess MSRs acquired by PennyMac Financial Services (PFSI -0.2%) which also reported weak mortgage results last night.
Wednesday, Sep 182013, 9:16 AM
Wednesday, Sep 182013, 9:16 AM| 4 Comments
- Newcastle Investment (NCT) spinoff New Residential (NRZ) soars 6.9% premarket after declaring its first full quarterly dividend of $0.175 per share for a 10.95% yield (based on last night's close).
- Nearly 11% is a whopper of a yield considering peers like Redwood (RWT), HLSS, and Pennymac (PMT) are in the 5-10% range.
Wednesday, Aug 212013, 12:05 PM
Wednesday, Aug 212013, 12:05 PM| 8 Comments
- The big picture view says better entry points are coming soon - perhaps after the taper actually begins (September?) and a new Fed chief is announced (October?).
- The team's favorite names are those associated with the sector that really aren't mREITs, but instead have more-specialized business models: Newcastle Investment (NCT +0.5%), its spinoff New Residential (NRZ +1.8%), and PennyMac Mortgage Investment Trust (PMT -0.1%).
- In the security-focused names, top picks are Two Harbors (TWO -0.8%) and Ellington Financial (EFC +0.1%), and American Capital Mortgage (MTGE).
- Thus far in Q3, CS sees sector book values off 4% amid a 40 bp increase in rates. The good news is credit spreads haven't continued to widen, but a coming taper announcement could blow them out again.
- Sector ETFs: REM, MORT, MORL.
- Earlier: Two Harbors gets an upgrade.
Wednesday, Aug 142013, 9:02 AM|Wednesday, Aug 142013, 9:02 AM| 3 Comments
Tuesday, Aug 132013, 4:09 PM
Thursday, Aug 82013, 10:06 AM
Thursday, Aug 82013, 10:06 AM| Comment!
- Net investment income of $129.7M up 9% from Q1. Gain on investment portfolio of $46.8M off 27%.
- Book value per share of $21.06 up 1.6% from Q1.
- Correspondent business: Revenue of $58.5M up 42% from Q1. Distressed mortgage investments unrealized gain of $46.8M down from $64M.
- Servicing portfolio of $19.9B UPB, up from $16.6B. Net servicing fees of $7.9M up from $6.6M.
- Investor presentation. Q2 results.
- PMT +3.1%.
Tuesday, Jun 182013, 10:15 AMPennyMac Mortgage Investment Trust (PMT -1.1%) is downgraded to Sell at Ladenburg Thalmann. The move stands in contrast with Compass Point's Buy recommendation from last week in which Kevin Barker argued the housing recovery should allow continued gains from PMT's distressed loan portfolio and the stock trades at a meaningful discount to its mREIT peers. |Tuesday, Jun 182013, 10:15 AM| 3 Comments
Thursday, Jun 132013, 10:08 AMArmour Residentail (ARR +4.8%) surges after holding its monthly distribution steady at $0.07/share. Capstead Mortgage (CMO +2%) gains as well after maintaining its quarterly payout at $0.31. The mREIT sector (REM +1.5%). Some other names moving: Invesco (IVR +2.1%), Two Harbors (TWO +1%), Hatteras (HTS +1.6%), Anworth (ANH +1.8%), Western Asset (WMC +3.4%), PennyMac (PMT +2.1%). |Thursday, Jun 132013, 10:08 AM| 14 Comments
Monday, May 202013, 2:58 PM
Thursday, Nov 82012, 9:12 AMMore on PennyMac (PMT) Q3 earnings: Net gain on investments of $26.1M and interest income of $13.6M make up the bulk of the $40M profit. Correspondent servicing portfolio purchases of $6.3B in UPB, +87% from Q2. Conventional purchases of $3.7B UPB, +111% from Q2. Dividend of $0.57, up 3% from Q2. Shares +6.7% premarket. (PR) |Thursday, Nov 82012, 9:12 AM| Comment!
- View all 2 replies
Ray44:: rationale? just to trade, or what? PMT seems pretty stable for this group
Tucker Leppa:: Yea I really like PMT, but it's gone too far too fast, I'll be back in on a pullback.