PennyMac Financial Services (NYSE:PFSI) Hits New 1-Year Low – Should You Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI) shares hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $71.67 and last traded at $71.7850, with a volume of 115103 shares. The stock had previously closed at $73.11.

Analysts Set New Price Targets

PFSI has been the topic of a number of recent analyst reports. Stephens dropped their price target on shares of PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 30th. Piper Sandler downgraded shares of PennyMac Financial Services from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $106.00 to $86.00 in a research note on Thursday, July 30th. Weiss Ratings restated a “sell (d+)” rating on shares of PennyMac Financial Services in a report on Monday, August 3rd. BTIG Research lowered their price objective on PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Finally, Wall Street Zen lowered PennyMac Financial Services from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $104.88.

PennyMac Financial Services Trading Up 2.3%

The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38. The firm has a fifty day simple moving average of $79.79 and a 200-day simple moving average of $84.84. The firm has a market cap of $3.76 billion, a P/E ratio of 9.94, a price-to-earnings-growth ratio of 0.67 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.The business’s quarterly revenue was up 11.8% compared to the same quarter last year. During the same quarter last year, the business posted $2.54 earnings per share. On average, equities research analysts expect that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were given a $0.30 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $1.20 annualized dividend and a yield of 1.7%. PennyMac Financial Services’s payout ratio is currently 16.48%.

Insider Buying and Selling

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,943 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $81.71, for a total transaction of $240,472.53. Following the completion of the transaction, the chief accounting officer directly owned 48,968 shares of the company’s stock, valued at approximately $4,001,175.28. This represents a 5.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 15.20% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Donald Smith & CO. Inc. purchased a new stake in shares of PennyMac Financial Services during the 2nd quarter valued at approximately $163,940,000. Dimensional Fund Advisors LP raised its holdings in PennyMac Financial Services by 7.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust’s stock valued at $167,474,000 after acquiring an additional 126,902 shares during the period. Norges Bank purchased a new stake in shares of PennyMac Financial Services during the fourth quarter worth $44,287,000. BlackRock Inc. purchased a new position in shares of PennyMac Financial Services in the second quarter valued at $202,735,000. Finally, Y Intercept Hong Kong Ltd raised its stake in shares of PennyMac Financial Services by 210.4% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 43,605 shares of the real estate investment trust’s stock valued at $3,811,000 after purchasing an additional 29,557 shares during the period. 57.87% of the stock is currently owned by institutional investors.

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.