PennyMac Financial Services (NYSE:PFSI) Sets New 12-Month Low – Time to Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI)’s stock price reached a new 52-week low on Wednesday. The company traded as low as $60.64 and last traded at $60.4830, with a volume of 74333 shares trading hands. The stock had previously closed at $62.76.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on PFSI shares. Stephens dropped their target price on shares of PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Wall Street Zen lowered shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Barclays lowered their price objective on PennyMac Financial Services from $85.00 to $71.00 and set an “equal weight” rating on the stock in a research report on Monday. Piper Sandler downgraded PennyMac Financial Services from an “overweight” rating to a “neutral” rating and cut their target price for the company from $106.00 to $86.00 in a research note on Thursday, July 30th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of PennyMac Financial Services in a report on Monday, August 3rd. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, PennyMac Financial Services has an average rating of “Hold” and an average price target of $103.12.

PennyMac Financial Services Stock Down 2.9%

The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22. The company’s fifty day moving average is $71.62 and its 200-day moving average is $80.96. The company has a market cap of $3.16 billion, a PE ratio of 8.36, a PEG ratio of 0.59 and a beta of 1.45.

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

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Monday, August 17th. PennyMac Financial Services’s payout ratio is currently 16.48%.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Versant Capital Management Inc bought a new stake in PennyMac Financial Services during the 3rd quarter worth approximately $71,000. QRG Capital Management Inc. boosted its position in shares of PennyMac Financial Services by 7.5% in the second quarter. QRG Capital Management Inc. now owns 3,881 shares of the real estate investment trust’s stock worth $338,000 after purchasing an additional 271 shares during the period. BlueCrest Capital Management Ltd boosted its position in shares of PennyMac Financial Services by 12.8% in the second quarter. BlueCrest Capital Management Ltd now owns 396,103 shares of the real estate investment trust’s stock worth $34,501,000 after purchasing an additional 45,008 shares during the period. Nykredit A S purchased a new stake in shares of PennyMac Financial Services in the second quarter worth $195,000. Finally, Corient Private Wealth LP raised its position in shares of PennyMac Financial Services by 1,030.8% during the 2nd quarter. Corient Private Wealth LP now owns 26,653 shares of the real estate investment trust’s stock valued at $2,321,000 after purchasing an additional 24,296 shares during the period. Hedge funds and other institutional investors own 57.87% of the company’s stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc (NYSE:PFSI) is a financial services company focused on the U.S. residential mortgage market. Through its operating subsidiaries, the company originates, acquires, services and manages investments in residential mortgage loans and related assets.

PennyMac’s business includes mortgage loan production through correspondent and consumer-direct channels, mortgage servicing and loan administration, and investment management activities. Its services support homeowners, mortgage originators and institutional investors across the residential lending lifecycle, including loan fulfillment, servicing and asset management.

The company was established in 2008 and serves customers and business partners throughout the United States.