Wedbush Reaffirms Outperform Rating for PennyMac Financial Services (NYSE:PFSI)

Wedbush reaffirmed their outperform rating on shares of PennyMac Financial Services (NYSE:PFSI) in a report released on Wednesday morning, Benzinga reports. The firm currently has a $130.00 price objective on the real estate investment trust’s stock. Wedbush also issued estimates for PennyMac Financial Services’ Q4 2024 earnings at $3.36 EPS, FY2024 earnings at $12.00 EPS, Q1 2025 earnings at $3.46 EPS, Q2 2025 earnings at $3.40 EPS and Q4 2025 earnings at $3.88 EPS.

Several other research analysts also recently weighed in on PFSI. Keefe, Bruyette & Woods downgraded PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 target price for the company. in a research note on Monday, July 22nd. Piper Sandler lifted their target price on shares of PennyMac Financial Services from $125.00 to $132.00 and gave the company an “overweight” rating in a research report on Wednesday. StockNews.com lowered shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Wednesday, July 3rd. Finally, Barclays boosted their price objective on PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 8th. One analyst has rated the stock with a sell rating, two have given a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $115.86.

PennyMac Financial Services Stock Performance

PFSI opened at $100.88 on Wednesday. The firm has a fifty day moving average price of $107.79 and a 200 day moving average price of $98.24. PennyMac Financial Services has a 1 year low of $62.75 and a 1 year high of $119.13. The stock has a market cap of $5.16 billion, a P/E ratio of 32.03, a P/E/G ratio of 0.63 and a beta of 1.77. The company has a debt-to-equity ratio of 2.75, a current ratio of 0.37 and a quick ratio of 0.37.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Tuesday, October 22nd. The real estate investment trust reported $1.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.92 by ($1.62). PennyMac Financial Services had a return on equity of 15.28% and a net margin of 11.45%. The firm had revenue of $411.83 million for the quarter, compared to analysts’ expectations of $513.12 million. During the same period in the previous year, the company earned $1.77 earnings per share. The company’s revenue was up 2.9% compared to the same quarter last year. Equities research analysts anticipate that PennyMac Financial Services will post 11.22 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Stockholders of record on Monday, November 18th will be given a $0.30 dividend. The ex-dividend date is Monday, November 18th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.19%. PennyMac Financial Services’s dividend payout ratio (DPR) is presently 38.10%.

Insider Activity at PennyMac Financial Services

In other news, insider Steven Richard Bailey sold 14,130 shares of PennyMac Financial Services stock in a transaction on Monday, September 16th. The stock was sold at an average price of $116.88, for a total transaction of $1,651,514.40. Following the transaction, the insider now owns 14,670 shares in the company, valued at $1,714,629.60. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, insider Steven Richard Bailey sold 14,130 shares of the stock in a transaction that occurred on Monday, September 16th. The shares were sold at an average price of $116.88, for a total value of $1,651,514.40. Following the completion of the sale, the insider now owns 14,670 shares of the company’s stock, valued at $1,714,629.60. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Joseph F. Mazzella sold 11,396 shares of PennyMac Financial Services stock in a transaction that occurred on Wednesday, August 14th. The shares were sold at an average price of $97.92, for a total transaction of $1,115,896.32. Following the sale, the director now directly owns 105,446 shares in the company, valued at approximately $10,325,272.32. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 89,855 shares of company stock valued at $9,647,599. 16.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Several large investors have recently modified their holdings of PFSI. Edgestream Partners L.P. lifted its holdings in shares of PennyMac Financial Services by 256.9% in the 2nd quarter. Edgestream Partners L.P. now owns 84,861 shares of the real estate investment trust’s stock worth $8,028,000 after acquiring an additional 61,087 shares during the last quarter. American Century Companies Inc. raised its position in PennyMac Financial Services by 13.2% in the second quarter. American Century Companies Inc. now owns 347,979 shares of the real estate investment trust’s stock valued at $32,919,000 after purchasing an additional 40,676 shares during the period. EMG Holdings L.P. lifted its stake in PennyMac Financial Services by 107.4% during the second quarter. EMG Holdings L.P. now owns 64,451 shares of the real estate investment trust’s stock worth $6,097,000 after purchasing an additional 33,370 shares in the last quarter. Quantbot Technologies LP purchased a new position in shares of PennyMac Financial Services during the first quarter worth $2,570,000. Finally, Denali Advisors LLC grew its stake in shares of PennyMac Financial Services by 179.2% in the first quarter. Denali Advisors LLC now owns 41,600 shares of the real estate investment trust’s stock valued at $3,789,000 after buying an additional 26,700 shares in the last quarter. Institutional investors and hedge funds own 57.87% of the company’s stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.