Piper Sandler Cuts PennyMac Financial Services (NYSE:PFSI) Price Target to $122.00

PennyMac Financial Services (NYSE:PFSI) had its target price lowered by Piper Sandler from $137.00 to $122.00 in a report issued on Thursday morning,Benzinga reports. The brokerage currently has an overweight rating on the real estate investment trust’s stock.

Several other research analysts have also issued reports on the company. Barclays reduced their price target on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating on the stock in a research report on Friday, January 30th. Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, January 20th. Wells Fargo & Company decreased their target price on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, January 30th. Zacks Research cut PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 3rd. Finally, 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 target on the stock. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $137.57.

PennyMac Financial Services Stock Performance

NYSE:PFSI opened at $90.05 on Thursday. The firm’s 50-day moving average is $94.89 and its 200-day moving average is $118.01. The company has a market cap of $4.70 billion, a price-to-earnings ratio of 9.68, a PEG ratio of 0.52 and a beta of 1.52. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.34 and a current ratio of 0.34. PennyMac Financial Services has a 52-week low of $82.65 and a 52-week high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.23 by ($1.26). The company had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The business’s revenue was up 14.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.95 earnings per share. Equities research analysts anticipate that PennyMac Financial Services will post 13.77 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.3%. The ex-dividend date was Friday, February 13th. PennyMac Financial Services’s dividend payout ratio is 12.90%.

Insiders Place Their Bets

In other PennyMac Financial Services news, Director Patrick Kinsella purchased 2,250 shares of the company’s stock in a transaction dated Thursday, February 12th. The shares were bought at an average price of $89.15 per share, with a total value of $200,587.50. Following the completion of the transaction, the director directly owned 34,210 shares in the company, valued at $3,049,821.50. This trade represents a 7.04% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Derek Stark sold 1,066 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $87.66, for a total value of $93,445.56. Following the completion of the transaction, the insider owned 20,944 shares of the company’s stock, valued at $1,835,951.04. This represents a 4.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 51,280 shares of company stock worth $5,154,453. 15.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC increased its position in shares of PennyMac Financial Services by 3.8% during the first quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust’s stock worth $2,404,000 after acquiring an additional 875 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in PennyMac Financial Services by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust’s stock valued at $1,594,000 after acquiring an additional 706 shares in the last quarter. Intech Investment Management LLC boosted its stake in PennyMac Financial Services by 5.8% in the 1st quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust’s stock worth $1,540,000 after purchasing an additional 840 shares during the period. Strs Ohio acquired a new position in PennyMac Financial Services in the 1st quarter worth $30,000. Finally, Legal & General Group Plc increased its holdings in PennyMac Financial Services by 0.5% during the 2nd quarter. Legal & General Group Plc now owns 35,478 shares of the real estate investment trust’s stock worth $3,535,000 after purchasing an additional 173 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

About PennyMac Financial Services

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.