Wall Street Zen Upgrades PennyMac Financial Services (NYSE:PFSI) to “Buy”

PennyMac Financial Services (NYSE:PFSI) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a note issued to investors on Saturday.

A number of other analysts have also commented on PFSI. Piper Sandler lifted their target price on shares of PennyMac Financial Services from $136.00 to $140.00 and gave the stock an “overweight” rating in a report on Wednesday, October 22nd. Keefe, Bruyette & Woods boosted their price target on shares of PennyMac Financial Services from $129.00 to $138.00 and gave the company a “market perform” rating in a report on Friday, October 24th. Wells Fargo & Company boosted their price target on shares of PennyMac Financial Services from $115.00 to $135.00 and gave the company an “overweight” rating in a report on Wednesday, October 22nd. UBS Group boosted their price target on shares of PennyMac Financial Services from $135.00 to $145.00 and gave the company a “neutral” rating in a report on Friday, October 24th. Finally, Zacks Research raised shares of PennyMac Financial Services from a “strong sell” rating to a “hold” rating in a report on Monday, October 6th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $138.67.

PennyMac Financial Services Price Performance

PFSI opened at $125.67 on Friday. The company has a fifty day moving average price of $120.69 and a two-hundred day moving average price of $106.27. 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 52 week low of $85.74 and a 52 week high of $134.56. The firm has a market capitalization of $6.50 billion, a PE ratio of 13.54 and a beta of 1.56.

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

Insider Transactions at PennyMac Financial Services

In related news, insider Derek Stark sold 4,750 shares of the company’s stock in a transaction on Monday, August 25th. The shares were sold at an average price of $109.56, for a total value of $520,410.00. Following the completion of the transaction, the insider directly owned 20,621 shares of the company’s stock, valued at approximately $2,259,236.76. This represents a 18.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Anne Mccallion sold 27,771 shares of the business’s stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $131.55, for a total transaction of $3,653,275.05. Following the sale, the director directly owned 1,547 shares in the company, valued at $203,507.85. This trade represents a 94.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 173,685 shares of company stock worth $21,896,093. Company insiders own 15.80% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in PFSI. T. Rowe Price Investment Management Inc. raised its holdings in shares of PennyMac Financial Services by 0.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,289,819 shares of the real estate investment trust’s stock valued at $429,454,000 after purchasing an additional 24,055 shares during the period. Lightrock Netherlands B.V. raised its holdings in shares of PennyMac Financial Services by 55.1% in the 1st quarter. Lightrock Netherlands B.V. now owns 136,055 shares of the real estate investment trust’s stock valued at $13,643,000 after purchasing an additional 48,312 shares during the period. Advantage Alpha Capital Partners LP raised its holdings in shares of PennyMac Financial Services by 26.3% in the 1st quarter. Advantage Alpha Capital Partners LP now owns 55,376 shares of the real estate investment trust’s stock valued at $5,544,000 after purchasing an additional 11,528 shares during the period. Maverick Capital Ltd. raised its holdings in shares of PennyMac Financial Services by 150.4% in the 1st quarter. Maverick Capital Ltd. now owns 8,073 shares of the real estate investment trust’s stock valued at $808,000 after purchasing an additional 4,849 shares during the period. Finally, Conversant Capital LLC raised its holdings in shares of PennyMac Financial Services by 25.1% in the 1st quarter. Conversant Capital LLC now owns 244,150 shares of the real estate investment trust’s stock valued at $24,442,000 after purchasing an additional 49,000 shares during the period. 57.87% of the stock is owned by institutional investors.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.