PennyMac Financial Services (NYSE:PFSI) Sets New 1-Year Low – What’s Next?

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) reached a new 52-week low during trading on Thursday . The company traded as low as $65.00 and last traded at $65.3740, with a volume of 130324 shares trading hands. The stock had previously closed at $65.61.

Wall Street Analysts Forecast Growth

PFSI has been the subject of several recent research reports. Barclays cut their price target on PennyMac Financial Services from $93.00 to $85.00 and set an “equal weight” rating for the company in a report on Thursday, July 30th. Wall Street Zen cut PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. BTIG Research cut their target price on PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Keefe, Bruyette & Woods reduced their price target on PennyMac Financial Services from $108.00 to $100.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Finally, Wells Fargo & Company lowered their price target on shares of PennyMac Financial Services from $100.00 to $95.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, PennyMac Financial Services currently has an average rating of “Hold” and an average target price of $104.88.

PennyMac Financial Services Trading Down 1.0%

The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The firm has a market cap of $3.37 billion, a price-to-earnings ratio of 8.93, a price-to-earnings-growth ratio of 0.63 and a beta of 1.44. The company has a 50 day moving average price of $75.45 and a 200 day moving average price of $82.44.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly 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 net margin of 17.74% and a return on equity of 11.18%. The company had revenue of $496.96 million for the quarter, compared to analyst estimates of $571.60 million. During the same quarter in the prior year, the business earned $2.54 earnings per share. PennyMac Financial Services’s revenue was up 11.8% on a year-over-year basis. On average, research analysts expect that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Monday, August 17th were issued 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 1.8%. PennyMac Financial Services’s dividend payout ratio (DPR) is 16.48%.

Insider Activity

In related news, CAO Gregory Hendry sold 2,177 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were 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 owned 48,968 shares in the company, valued at approximately $4,254,829.52. The trade was a 4.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 15.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. MFN Partners Management LP purchased a new position in shares of PennyMac Financial Services in the 2nd quarter valued at about $394,719,083. BlackRock Inc. acquired a new position in PennyMac Financial Services in the second quarter valued at approximately $202,735,000. Dimensional Fund Advisors LP boosted its holdings in PennyMac Financial Services by 7.1% in the first 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 purchasing an additional 126,902 shares in the last quarter. Donald Smith & CO. Inc. purchased a new position in PennyMac Financial Services in the second quarter valued at approximately $163,940,000. Finally, 140 Summer Partners LP increased its stake in PennyMac Financial Services by 50.2% in the fourth quarter. 140 Summer Partners LP now owns 669,892 shares of the real estate investment trust’s stock valued at $88,319,000 after purchasing an additional 223,752 shares during 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 mortgage banking company that provides a range of residential lending and loan servicing services in the United States. The company operates through its subsidiaries and focuses primarily on the production and servicing of conventional and government-insured residential mortgage loans.

PennyMac’s loan production business acquires, originates and refinances mortgage loans through correspondent, broker-direct and consumer-direct channels.