Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

This Metric Says You Are Smart to Sell PennyMac Mortgage Investment Trust (PMT)

Page 1 of 2

Is PennyMac Mortgage Investment Trust (NYSE:PMT) going to take off soon? Money managers are turning less bullish. The number of long hedge fund positions were cut by 6 lately.

At the moment, there are a multitude of gauges shareholders can use to watch publicly traded companies. A couple of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the broader indices by a healthy margin (see just how much).

PennyMac Mortgage Investment Trust (NYSE:PMT)Equally as key, positive insider trading activity is another way to parse down the financial markets. There are a number of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the valuable potential of this method if investors know where to look (learn more here).

Consequently, it’s important to take a glance at the recent action regarding PennyMac Mortgage Investment Trust (NYSE:PMT).

What have hedge funds been doing with PennyMac Mortgage Investment Trust (NYSE:PMT)?

Heading into Q2, a total of 16 of the hedge funds we track held long positions in this stock, a change of -27% from the first quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.

Of the funds we track, Glenn Russell Dubin’s Highbridge Capital Management had the largest position in PennyMac Mortgage Investment Trust (NYSE:PMT), worth close to $63.7 million, comprising 0.7% of its total 13F portfolio. The second largest stake is held by John Burbank of Passport Capital, with a $53 million position; 2.1% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates and Jonathon Jacobson’s Highfields Capital Management.

Seeing as PennyMac Mortgage Investment Trust (NYSE:PMT) has experienced a declination in interest from hedge fund managers, logic holds that there exists a select few money managers who were dropping their positions entirely in Q1. It’s worth mentioning that Anand Parekh’s Alyeska Investment Group dropped the biggest stake of the 450+ funds we track, valued at close to $21.5 million in stock., and Dmitry Balyasny of Balyasny Asset Management was right behind this move, as the fund dumped about $11.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds in Q1.

How have insiders been trading PennyMac Mortgage Investment Trust (NYSE:PMT)?

Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past six months. Over the last 180-day time period, PennyMac Mortgage Investment Trust (NYSE:PMT) has seen 1 unique insiders buying, and 9 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to PennyMac Mortgage Investment Trust (NYSE:PMT). These stocks are ARMOUR Residential REIT, Inc. (NYSE:ARR), CYS Investments Inc (NYSE:CYS), Colonial Properties Trust Inc (NYSE:CLP), Education Realty Trust, Inc. (NYSE:EDR), and Sun Communities Inc (NYSE:SUI). This group of stocks belong to the reit – residential industry and their market caps resemble PMT’s market cap.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!