PennyMac Financial Services, Inc. (NYSE:PFSI) Receives Average Rating of “Hold” from Analysts

PennyMac Financial Services, Inc. (NYSE:PFSI) has earned an average recommendation of “Hold” from the ten ratings firms that are covering the company, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, two have assigned a hold recommendation and six have given a buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $116.3750.

A number of brokerages have recently commented on PFSI. Keefe, Bruyette & Woods dropped their price target on PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating on the stock in a research report on Friday, May 8th. Piper Sandler decreased their price objective on shares of PennyMac Financial Services from $112.00 to $106.00 and set an “overweight” rating for the company in a report on Thursday. Barclays lowered their target price on PennyMac Financial Services from $116.00 to $107.00 and set an “overweight” rating on the stock in a report on Monday, May 11th. BTIG Research dropped their price target on shares of PennyMac Financial Services from $150.00 to $105.00 and set a “buy” rating on the stock in a research note on Tuesday, June 16th. Finally, Weiss Ratings downgraded PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 6th.

PennyMac Financial Services Price Performance

Shares of PFSI stock opened at $83.54 on Monday. PennyMac Financial Services has a fifty-two week low of $77.67 and a fifty-two week high of $160.36. The company has a debt-to-equity ratio of 3.63, a quick ratio of 0.33 and a current ratio of 0.33. The business’s 50 day moving average price is $85.20 and its 200-day moving average price is $100.41. The firm has a market cap of $4.34 billion, a P/E ratio of 8.88, a P/E/G ratio of 0.56 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.03). The company had revenue of $544.98 million during the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.PennyMac Financial Services’s quarterly revenue was up 26.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.42 earnings per share. On average, equities research analysts anticipate that PennyMac Financial Services will post 10.43 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Monday, May 18th were paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Monday, May 18th. PennyMac Financial Services’s dividend payout ratio (DPR) is 12.75%.

Insider Activity

In related news, CAO Gregory L. Hendry sold 2,177 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $86.89, for a total transaction of $189,159.53. Following the completion of the transaction, the chief accounting officer directly owned 48,968 shares of the company’s stock, valued at approximately $4,254,829.52. This represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $87.50, for a total value of $255,937.50. Following the transaction, the chief financial officer owned 210,625 shares of the company’s stock, valued at $18,429,687.50. This represents a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 28,045 shares of company stock worth $2,493,770 over the last quarter. Insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Several hedge funds have recently made changes to their positions in the business. 140 Summer Partners LP purchased a new position in PennyMac Financial Services in the third quarter worth about $55,268,000. Norges Bank bought a new stake in shares of PennyMac Financial Services in the 4th quarter valued at approximately $44,287,000. Two Sigma Investments LP boosted its holdings in shares of PennyMac Financial Services by 1,148.7% in the 3rd quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock worth $38,517,000 after purchasing an additional 286,019 shares during the period. Janus Henderson Group PLC increased its position in shares of PennyMac Financial Services by 1,882.2% during the 1st quarter. Janus Henderson Group PLC now owns 267,868 shares of the real estate investment trust’s stock valued at $23,423,000 after purchasing an additional 254,354 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in PennyMac Financial Services by 173.9% during the 1st quarter. Bank of America Corp DE now owns 379,429 shares of the real estate investment trust’s stock valued at $33,162,000 after buying an additional 240,902 shares during the period. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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.