At a glance
PennyMac Mortgage Investment Trust is worth $634.0M, about 7 times its fiscal 2025 earnings. It pays a 37.0% dividend yield, and returned $950.1M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −24.8% over the past year with dividends reinvested and −5.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 75.8% in the 2020 crash (S&P 500: 33.7%) and 34.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months and 14 months after the lows.
The business in plain English
PennyMac Mortgage Investment Trust (PMT) is a mortgage real estate investment trust, or REIT. It invests in US home loan assets rather than buildings, and as a REIT must pay out most of its taxable income as dividends. It is externally managed: Pennymac Capital Management, part of the separately listed PennyMac Financial Services (PFSI), runs the portfolio, while another PFSI unit, PennyMac Loan Services (PLS), purchases and services loans for it.
PMT reports three segments. Correspondent production purchases newly made prime home loans from approved lenders and passes most to Fannie Mae and Freddie Mac, keeping the mortgage servicing rights (MSRs): the right to a fee for handling borrowers' payments. Since July 1, 2025, PLS has been the first purchaser of these loans, and PMT can take up to 100% of PLS's non-government loans. Interest rate sensitive strategies holds MSRs, mortgage-backed securities (bonds backed by pools of home loans) and hedges. Credit sensitive strategies holds credit risk transfer deals, which make PMT absorb losses if borrowers on loans it sold default.
PMT earns interest, servicing fees, gains on loan sales and changes in the fair value of its holdings. In 2025, the interest rate sensitive segment produced the most net investment income and held most of the assets, while credit sensitive income fell for a second straight year.
Price history
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PMT -24.8% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was —, and net income was $30.9M (+310.4%).
- For fiscal 2025, revenue was — (— year over year) with a null% net margin.
Financial health check
| Return on equity (FY2025) | 6.8% weak |
|---|---|
| Return on assets (FY2025) | 0.6% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | — | $52.4M | — |
| FY2021 | — | $56.9M | — |
| FY2022 | — | $-73.3M | — |
| FY2023 | — | $199.7M | — |
| FY2024 | — | $161.0M | — |
| FY2025 | — | $127.9M | — |
Valuation snapshot
| Market value | $634.0M |
|---|---|
| P/E ratio | 7.3 |
| Dividend yield | 37% |
Rank among 1514 US companies
Market value at each year end
PennyMac Mortgage Investment Trust’s market value went from $1.09B at the end of 2016 to $634.0M on Oct 28, 2026, down 42%; since the end of 2025 it is down 42%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $634.0M | -41.9% |
| 2025 | $1.09B | -0.1% |
| 2024 | $1.09B | -15.6% |
| 2023 | $1.30B | +17.5% |
| 2022 | $1.10B | -34.5% |
| 2021 | $1.68B | -3.3% |
| 2020 | $1.74B | -14.3% |
| 2019 | $2.03B | +78.7% |
| 2018 | $1.13B | +7.7% |
| 2017 | $1.05B | -3.5% |
| 2016 | $1.09B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PMT price data to Oct 28, 2026 | -26.9% | -24.8% | -0.7% | -5.1% | +5.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -26.9% |
| 2025 | +13.3% |
| 2024 | -5.4% |
| 2023 | +36.2% |
| 2022 | -18.2% |
| 2021 | +8.6% |
| 2020 | -13.1% |
| 2019 | +30.4% |
| 2018 | +28.1% |
| 2017 | +9.3% |
| 2016 | +21.6% |
| 2015 | -18.2% |
| 2014 | +5.1% |
| 2013 | +0.2% |
| 2012 | +73.8% |
| 2011 | +1.8% |
| 2010 | +10.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 73.1% over that stretch · deepest drop along the way 75.8%, back to its old high 15 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 30.1% over that stretch · deepest drop along the way 34.6%, back to its old high 13.8 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 3 sales ($65K), 3 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 3, 2026 | Gregory L Hendry Chief Accounting Officer | sell (plan) | $23K |
| Sep 1, 2026 | Gregory L Hendry Chief Accounting Officer | sell (plan) | $23K |
| Oct 1, 2026 | Gregory L Hendry Chief Accounting Officer | sell (plan) | $19K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 16.4% | Mar 31, 2025 |
| Vanguard Capital Management | 5.1% | Mar 31, 2026 |
| Vanguard Portfolio Management | 3.95% | Sep 30, 2026 |
ETFs with the most weight in PMT
| SRET Global X SuperDividend REIT ETF | 3.57% |
| HIPS GraniteShares HIPS US High Income ETF | 2.9% |
| MORT VanEck Mortgage REIT Income ETF | 2.89% |
| KBWD Invesco KBW High Dividend Yield Financial ETF | 2.88% |
| REM iShares Mortgage Real Estate ETF | 2.85% |
| XSHD Invesco S&P SmallCap High Dividend Low Volatility ETF | 2.8% |
| MDIV Multi-Asset Diversified Income Index Fund | 1.47% |
| RIET Hoya Capital High Dividend Yield ETF | 1.36% |
What could go wrong
- Dependence on PennyMac Financial and its units. PMT relies on PFSI units to manage it and to purchase and service its loans. Ending those deals could cost a significant termination fee, and the fee structure may not fully match shareholder interests.
- Rate swings can erode servicing rights' value. Mortgage servicing rights lose value when rates fall and homeowners refinance, ending the fee stream early. Hedges meant to offset this may not work and can cause their own losses.
- Losses if borrowers default. Through credit risk transfer deals and subordinate bonds, which take losses first, PMT absorbs losses if borrowers default, even on loans it sold. Rising homeownership costs could push up delinquencies and foreclosures.
- Heavy reliance on Fannie Mae and Freddie Mac. Most loans PMT purchases end up with Fannie Mae and Freddie Mac. Changes to their structure or pricing, or failure to meet their approval and net worth rules, could disrupt the loan business.
- Heavy borrowing magnifies losses. As of June 30, 2026, PMT had about $15.6 billion of total debt and $1.9 billion of equity. Loan covenants limit flexibility, and new debt or equity may not always be available.
- Dividend exceeds earnings and isn't guaranteed. PMT has set no minimum dividend. In fiscal 2025 it paid $1.60 per share while earning $0.99 per diluted share, so the payout exceeded earnings and could be cut.
Recent events
- Quarterly results released; Executive or board change; Other company announcement
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Quarterly results released
- New debt or financial obligation
For income and retirement investors
PMT has no streak of dividend increases. Dividends per share peaked at $1.89 in 2021 and slipped to $1.81 in 2022. They held at $1.60 in each year from 2023 through 2025. In 2025, dividends paid equaled 109% of net income, and the $1.60 dividend compared with diluted earnings of $0.99 per share. The 10-K says no minimum payout has been set. PMT bought back $173 million of shares from 2021 through 2025, none of it in 2024 or 2025. Its share count fell 10.9% between August 2021 and July 2026.
The shares have fallen sharply in downturns. In the 2020 COVID crash they dropped 75.8% in under a month and took about 15 months to recover. In the 2022 bear market they fell 34.6% and took about 14 months to recover. The price fell 24.8% in the year to October 28, 2026. As a single stock, PMT carries more risk than a diversified fund.
Questions investors ask
How does PennyMac Mortgage Investment Trust make money?
PMT makes money by investing in US home mortgage assets. Its correspondent business purchases newly made prime home loans from approved lenders, delivers most to Fannie Mae and Freddie Mac, and keeps the mortgage servicing rights, which pay a fee for handling borrowers' payments. It also earns interest on mortgage-backed securities and takes on default risk through credit risk transfer deals. In 2025, its interest rate sensitive strategies segment produced the most net investment income of its three segments.
Is PMT's dividend covered by earnings?
Not in fiscal 2025. PMT paid $1.60 per share in dividends, the same as in 2023 and 2024, against diluted earnings of $0.99 per share. Total dividends paid came to about 109% of net income. The company has set no minimum payout and says it cannot promise future dividends at the same level, or at all. REIT dividends also generally do not qualify for the lower tax rates that apply to many corporate dividends.
Is PennyMac Mortgage Investment Trust the same company as PennyMac Financial?
No. PennyMac Mortgage Investment Trust (PMT) and PennyMac Financial Services (PFSI) are separate companies, each listed on the New York Stock Exchange. But PFSI runs PMT: its subsidiary Pennymac Capital Management is PMT's external manager, and another subsidiary, PennyMac Loan Services, purchases and services loans for PMT. PMT pays fees for these services. Its 10-K warns that the arrangement can create conflicts of interest and that ending the agreements could bring a significant termination fee.
How has PMT stock performed?
Poorly over shorter periods. As of October 28, 2026, PMT stock was down 26.9% year to date and 24.8% over one year, and it fell as much as 38.3% from a peak during that year. Over 10 years, its annualized return was 5.4%. It has a history of steep drops: it lost 75.8% in the 2020 COVID crash, taking 15 months to recover, and 34.6% in the 2022 bear market.
What is PMT's P/E ratio?
About 7.3, based on the October 28, 2026 closing price and fiscal 2025 diluted earnings of $0.99 per share. That gave PMT a market value of about $634 million. A price-to-earnings (P/E) ratio compares the share price with yearly profit per share. Mortgage REIT earnings swing with interest rates and asset values: PMT's net income fell 20.6% in 2025, and it lost money in 2022, so one year's profit may not reflect future results. Return on equity was 6.8% in 2025.