What is the ownership structure of PennyMac Mortgage Investment Fund (NYSE: PMT)?



Take a look at the shareholders of PennyMac Mortgage Investment Trust (NYSE: PMT) can tell us which group is the strongest. Insiders often own a significant share of younger, smaller companies, while large companies tend to have institutions as shareholders. Previously state-owned companies tend to have less insider ownership.

PennyMac Mortgage Investment Fund isn’t huge, but it’s not particularly small either. Its market capitalization is US $ 2.1 billion, which means that, in general, some institutions are expected to be listed on the share register. In the diagram below, we can see that institutions own shares of the company. We can take a closer look at various owner groups to learn more about PennyMac Mortgage Investment Trust.

Check out our latest analysis on PennyMac Mortgage Investment Trust

distribution of property

distribution of property

What does institutional ownership tell us about the PennyMac Mortgage Investment Trust?

Institutions typically compare themselves to a benchmark when they report to their investors, so they are often very enthusiastic about a stock when it is listed on a major index. We expect most companies to have multiple institutions on the ledger, especially if they are growing.

We see that PennyMac Mortgage Investment Fund does have institutional investors; and they own a significant portion of the company’s shares. This means that analysts working at these institutions looked at the stocks and liked them. But like everyone else, they could be wrong. If several organizations change their view of stocks at the same time, you can see how quickly the stock price falls. It is therefore worth taking a look at the PennyMac Mortgage Investment Trust earnings history below. Of course, the future really matters.

profits and income growth

profits and income growth

Since institutional investors own more than half of the outstanding shares, the board of directors may have to pay attention to their preferences. PennyMac Mortgage Investment Fund is not owned by hedge funds. Looking at our data, we see that the largest shareholder is BlackRock, Inc. with 19% of shares outstanding. For context, the second largest shareholder owns about 11% of the issued shares, followed by 4.3% of the shares of the third largest shareholder.

A closer look at our ownership data reveals that the 12 largest shareholders have a combined ownership stake of 50%, which means that none of the shareholders has a majority.

Studying institutional ownership for a company can add value to your research, but it is also helpful to study analyst recommendations to better understand expected stock returns. There are a reasonable number of analysts studying stocks, so it would be useful to know their general view of the future.

Insider Ownership of PennyMac Mortgage Investment Trust

The definition of company insiders can be subjective and vary by jurisdiction. Our data reflects individual insiders, at least members of the board of directors. The company’s management is accountable to the board of directors, which must represent the interests of shareholders. It is noteworthy that sometimes the executives themselves are on the board of directors.

Insider ownership is positive when it signals that management thinks like the true owners of the company. However, a high degree of insider ownership can also give tremendous power to a small group within a company. In some cases, this can be negative.

Our latest data shows that insiders own some of the shares of the PennyMac Mortgage Investment Trust. Insiders have a sizable stake of $ 21 million. Most would consider this a real positive. Most would say that this indicates a coincidence of interests between shareholders and the board of directors. However, it might be worth checking out if those insiders were selling.

Common state property

The general public, which owns 28% of the company’s shares, is not easy to ignore. While this size of ownership may not be enough to influence a political decision in their favor, it can still collectively influence company policy.

Next steps:

I’m very interested to see who exactly owns the company. But to truly understand, we need to consider other information as well. Be aware that PennyMac Mortgage Investment Fund Shows 5 warning signs in our investment analysis and 3 of them are a little unpleasant …

If you are like me, you might be wondering if this company will grow or shrink. Fortunately, you can check this free report showing analyst predictions for the future

NB: The figures in this article are calculated using data for the last twelve months, which refers to a 12-month period ending on the last day of the month in which the financial statement is dated. This may not be consistent with the full year annual report.

This article by Simply Wall St is general in nature. It is not a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not include the latest announcements from price-sensitive companies or quality content. Simply Wall St has no position in any of the mentioned promotions.

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