PennyMac Financial Services (NYSE:PFSI) Price Target Cut to $115.00 by Analysts at Keefe, Bruyette & Woods

PennyMac Financial Services (NYSE:PFSI) had its price target dropped by equities researchers at Keefe, Bruyette & Woods from $143.00 to $115.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a “market perform” rating on the real estate investment trust’s stock. Keefe, Bruyette & Woods’ price objective indicates a potential upside of 23.00% from the stock’s previous close.

Several other analysts also recently issued reports on the company. Wells Fargo & Company reduced their price target on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a research note on Friday. Zacks Research raised shares of PennyMac Financial Services to a “hold” rating in a research report on Friday, December 19th. Piper Sandler decreased their price target on shares of PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating on the stock in a research note on Friday. Jefferies Financial Group assumed coverage on shares of PennyMac Financial Services in a research note on Friday, December 19th. They issued a “buy” rating and a $160.00 price objective for the company. Finally, Wall Street Zen lowered shares of PennyMac Financial Services from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $139.71.

PennyMac Financial Services Stock Performance

Shares of PFSI stock traded down $6.42 during midday trading on Monday, hitting $93.50. 1,705,838 shares of the company were exchanged, compared to its average volume of 760,854. PennyMac Financial Services has a 52 week low of $85.74 and a 52 week high of $160.36. The firm has a market capitalization of $4.86 billion, a P/E ratio of 10.05, a PEG ratio of 0.46 and a beta of 1.55. The firm’s 50 day moving average price is $137.44 and its two-hundred day moving average price is $123.33. The company has a debt-to-equity ratio of 3.01, a quick ratio of 0.36 and a current ratio of 0.36.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.23 by ($1.26). PennyMac Financial Services had a return on equity of 10.36% and a net margin of 24.48%.The company had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same quarter last year, the business earned $1.95 earnings per share. The company’s revenue was up 14.4% on a year-over-year basis. As a group, equities research analysts anticipate that PennyMac Financial Services will post 13.77 earnings per share for the current year.

Insiders Place Their Bets

In related news, CAO Gregory L. Hendry sold 3,530 shares of the firm’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $131.64, for a total value of $464,689.20. Following the sale, the chief accounting officer directly owned 48,633 shares of the company’s stock, valued at $6,402,048.12. This trade represents a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Daniel Stanley Perotti sold 8,775 shares of the stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $126.67, for a total transaction of $1,111,529.25. Following the completion of the transaction, the chief financial officer directly owned 216,475 shares of the company’s stock, valued at $27,420,888.25. This trade represents a 3.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 80,076 shares of company stock valued at $10,512,190 in the last quarter. Corporate insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Harbor Capital Advisors Inc. raised its holdings in PennyMac Financial Services by 26.3% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock worth $62,000 after purchasing an additional 105 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in PennyMac Financial Services by 0.7% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust’s stock worth $1,598,000 after acquiring an additional 111 shares during the period. GAMMA Investing LLC raised its position in shares of PennyMac Financial Services by 97.3% in the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after acquiring an additional 142 shares in the last quarter. Sei Investments Co. lifted its stake in shares of PennyMac Financial Services by 0.7% in the 3rd quarter. Sei Investments Co. now owns 22,145 shares of the real estate investment trust’s stock valued at $2,743,000 after purchasing an additional 146 shares during the period. Finally, CANADA LIFE ASSURANCE Co boosted its position in shares of PennyMac Financial Services by 1.0% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 16,236 shares of the real estate investment trust’s stock valued at $2,026,000 after purchasing an additional 163 shares in the last quarter. 57.87% of the stock is owned by institutional investors and hedge funds.

About PennyMac Financial Services

PennyMac Financial Services, Inc (NYSE: PFSI) is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.