PennyMac Financial Services, Inc. (NYSE:PFSI) Receives Consensus Rating of “Hold” from Brokerages

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) have earned a consensus recommendation of “Hold” from the ten analysts that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, two have issued a hold recommendation and six have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $122.75.

PFSI has been the topic of several recent research reports. Barclays reduced their price target on PennyMac Financial Services from $116.00 to $107.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Stephens initiated coverage on PennyMac Financial Services in a research report on Friday, April 24th. They set an “equal weight” rating and a $100.00 price target on the stock. Piper Sandler reduced their price target on PennyMac Financial Services from $122.00 to $112.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 6th. Keefe, Bruyette & Woods reduced their price target on PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating on the stock in a research report on Friday, May 8th. Finally, Wells Fargo & Company reduced their price target on PennyMac Financial Services from $110.00 to $100.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 6th.

PennyMac Financial Services Trading Down 4.1%

NYSE PFSI opened at $80.60 on Thursday. PennyMac Financial Services has a 1-year low of $80.36 and a 1-year high of $160.36. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. The stock has a 50-day moving average of $88.36 and a 200-day moving average of $107.78. The firm has a market cap of $4.18 billion, a PE ratio of 8.57, a price-to-earnings-growth ratio of 0.55 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.22 by ($0.03). PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The company had revenue of $544.98 million for the quarter, compared to the consensus estimate of $546.17 million. During the same quarter in the previous year, the business earned $1.42 earnings per share. PennyMac Financial Services’s revenue was up 26.5% compared to the same quarter last year. As a group, sell-side analysts forecast that PennyMac Financial Services will post 10.68 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Monday, May 18th were paid a $0.30 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.20 annualized dividend and a dividend yield of 1.5%. PennyMac Financial Services’s dividend payout ratio (DPR) is presently 12.75%.

Insider Activity

In related news, CEO David Spector sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total value of $879,900.00. Following the sale, the chief executive officer directly owned 60,604 shares of the company’s stock, valued at $5,332,545.96. This trade represents a 14.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the firm’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $87.50, for a total value of $255,937.50. Following the completion of the sale, the chief financial officer directly owned 210,625 shares in the company, valued at $18,429,687.50. The trade was a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 45,361 shares of company stock worth $4,002,384 over the last three months. 15.80% of the stock is owned by insiders.

Institutional Trading of PennyMac Financial Services

Large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC bought a new stake in shares of PennyMac Financial Services in the second quarter worth about $26,000. Caitong International Asset Management Co. Ltd grew its stake in shares of PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock worth $30,000 after purchasing an additional 228 shares during the last quarter. Strs Ohio bought a new stake in shares of PennyMac Financial Services in the first quarter worth about $30,000. Los Angeles Capital Management LLC bought a new stake in shares of PennyMac Financial Services in the fourth quarter worth about $31,000. Finally, GAMMA Investing LLC grew its stake in shares of PennyMac Financial Services by 97.3% in the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after purchasing an additional 142 shares during the last quarter. 57.87% of the stock is owned by institutional investors.

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.