PennyMac Financial Services (NYSE:PFSI) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of PennyMac Financial Services (NYSE:PFSI) from a buy rating to a hold rating in a report released on Sunday.

Several other brokerages also recently weighed in on PFSI. BTIG Research upped their target price on shares of PennyMac Financial Services from $135.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, December 29th. Jefferies Financial Group began coverage on shares of PennyMac Financial Services in a research report on Friday, December 19th. They issued a “buy” rating and a $160.00 price objective for the company. Zacks Research raised PennyMac Financial Services to a “hold” rating in a research report on Friday, December 19th. Barclays boosted their price target on PennyMac Financial Services from $139.00 to $158.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 6th. Finally, UBS Group raised their price objective on PennyMac Financial Services from $135.00 to $145.00 and gave the company a “neutral” rating in a research note on Friday, October 24th. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $153.43.

PennyMac Financial Services Stock Performance

Shares of NYSE:PFSI opened at $150.30 on Friday. The company has a market cap of $7.81 billion, a P/E ratio of 16.20, a PEG ratio of 0.73 and a beta of 1.57. 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 has a one year low of $85.74 and a one year high of $160.36. The business’s 50-day simple moving average is $134.53 and its 200 day simple moving average is $120.87.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.98 by $0.39. PennyMac Financial Services had a return on equity of 11.69% and a net margin of 25.21%.The firm had revenue of $632.90 million during the quarter, compared to analysts’ expectations of $573.46 million. During the same quarter in the prior year, the business earned $1.30 EPS. PennyMac Financial Services’s quarterly revenue was up 53.7% compared to the same quarter last year. On average, sell-side analysts forecast that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

Insider Buying and Selling at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 26,011 shares of PennyMac Financial Services stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $131.36, for a total value of $3,416,804.96. Following the completion of the transaction, the chief financial officer directly owned 9,964 shares of the company’s stock, valued at approximately $1,308,871.04. The trade was a 72.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Doug Jones sold 23,453 shares of the stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $127.56, for a total transaction of $2,991,664.68. Following the sale, the director owned 19,056 shares in the company, valued at approximately $2,430,783.36. This trade represents a 55.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 205,019 shares of company stock valued at $26,695,859. Corporate insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several institutional investors have recently modified their holdings of PFSI. EverSource Wealth Advisors LLC acquired a new position in PennyMac Financial Services during the 2nd quarter valued at about $26,000. GAMMA Investing LLC raised its holdings in shares of PennyMac Financial Services by 97.3% during the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock valued at $38,000 after buying an additional 142 shares during the last quarter. Strs Ohio acquired a new position in shares of PennyMac Financial Services during the first quarter worth approximately $30,000. Harbor Capital Advisors Inc. boosted its position in shares of PennyMac Financial Services by 26.3% during the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock worth $62,000 after buying an additional 105 shares during the period. Finally, CWM LLC grew its holdings in PennyMac Financial Services by 92.7% in the 3rd quarter. CWM LLC now owns 555 shares of the real estate investment trust’s stock worth $69,000 after buying an additional 267 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Company Profile

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.