Analyst Derek Hewett from Bank of America Securities maintained a Hold rating on PennyMac Mortgage and keeping the price target at $12.50.
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Derek Hewett’s rating is based on PennyMac Mortgage’s recent performance and financial outlook. The company reported a solid quarter with GAAP EPS surpassing expectations and a slight increase in Book Value Per Share, indicating a stable financial position. The economic return was positive, and the quarterly EPS run-rate guidance exceeded the dividend payout, suggesting potential for earnings growth as the yield curve steepens.
Despite these positive indicators, the risk and reward appear balanced at the current stock price, leading to a Hold rating. The improvements in interest rate sensitive strategies and the credit portfolio’s solid performance contribute to this outlook. However, the modest increase in leverage and the upcoming debt maturities in 2026 are factors to consider, as they may impact the company’s financial flexibility in the near term.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $13.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PMT in relation to earlier this year.