Wells Fargo & Company Cuts PennyMac Financial Services (NYSE:PFSI) Price Target to $135.00

PennyMac Financial Services (NYSE:PFSI) had its price target reduced by Wells Fargo & Company from $150.00 to $135.00 in a research report sent to investors on Friday,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the real estate investment trust’s stock.

Several other equities research analysts have also recently issued reports on the company. Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, January 20th. Jefferies Financial Group began coverage on PennyMac Financial Services in a report on Friday, December 19th. They set a “buy” rating and a $160.00 price objective on the stock. Wall Street Zen lowered shares of PennyMac Financial Services from a “buy” rating to a “hold” rating in a report on Sunday, January 18th. UBS Group upped their price target on shares of PennyMac Financial Services from $135.00 to $145.00 and gave the company a “neutral” rating in a research note on Friday, October 24th. Finally, Zacks Research upgraded shares of PennyMac Financial Services to a “hold” rating in a research report on Friday, December 19th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $143.71.

PennyMac Financial Services Trading Down 33.3%

PennyMac Financial Services stock opened at $99.91 on Friday. PennyMac Financial Services has a 1 year low of $85.74 and a 1 year high of $160.36. The firm’s 50 day moving average price is $137.44 and its 200-day moving average price is $123.33. The company has a debt-to-equity ratio of 3.01, a current ratio of 0.36 and a quick ratio of 0.36. The stock has a market cap of $5.19 billion, a P/E ratio of 10.74, a PEG ratio of 0.46 and a beta of 1.55.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share 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 analysts’ expectations of $639.81 million. PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.36%. The business’s revenue was up 14.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.95 earnings per share. On average, equities analysts predict that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Monday, February 16th will be given a dividend of $0.30 per share. The ex-dividend date is Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a yield of 1.2%. PennyMac Financial Services’s payout ratio is 12.90%.

Insider Activity

In related news, CEO David Spector sold 10,000 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $145.19, for a total value of $1,451,900.00. Following the sale, the chief executive officer directly owned 100,604 shares of the company’s stock, valued at $14,606,694.76. This represents a 9.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Daniel Stanley Perotti sold 8,775 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $126.67, for a total value of $1,111,529.25. Following the transaction, the chief financial officer owned 216,475 shares of the company’s stock, valued at $27,420,888.25. This trade represents a 3.90% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 80,076 shares of company stock worth $10,512,190. Insiders own 15.80% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

Institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC purchased a new position in PennyMac Financial Services during the 2nd quarter valued at $26,000. Strs Ohio bought a new stake in shares of PennyMac Financial Services during the first quarter worth $30,000. GAMMA Investing LLC boosted its stake in shares of PennyMac Financial Services by 97.3% during the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock valued at $38,000 after purchasing an additional 142 shares during the period. Bayforest Capital Ltd bought a new position in shares of PennyMac Financial Services in the second quarter worth about $62,000. Finally, Harbor Capital Advisors Inc. increased its stake in PennyMac Financial Services by 26.3% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock worth $62,000 after buying an additional 105 shares during the period. 57.87% of the stock is owned by institutional investors.

Key PennyMac Financial Services News

Here are the key news stories impacting PennyMac Financial Services this week:

• Positive Sentiment: PFSI declared a quarterly cash dividend of $0.30/share (record Feb 16, payable Feb 26) — supports yield and income-minded holders. PennyMac Reports Q4 & Full‑Year 2025 Results
• Neutral Sentiment: Some brokers still rate PFSI “overweight”/”moderate buy” despite cutting price targets (Barclays: $158→$136; Wells Fargo: $150→$135), which signals confidence in recovery longer term even as near-term estimates are trimmed. Benzinga
• Neutral Sentiment: Company provided an earnings presentation and call transcript that investors should review for management commentary on margin outlook and mortgage margin drivers. Q4 Presentation / Press Release
• Negative Sentiment: PFSI missed Q4 EPS and revenue estimates (EPS $1.97 vs. consensus $3.23; revenue $538M vs. $640M consensus); management flagged margin pressure — the primary driver of the sharp selloff. Seeking Alpha: Shares Sink After Earnings Miss
• Negative Sentiment: Multiple law firms (BFA Law) launched securities‑fraud investigations following the post‑earnings share drop, which can increase legal risk, headline volatility and selling pressure. GlobeNewswire: BFA Law Investigation Alert BusinessWire: BFA Law Launches Investigation
• Negative Sentiment: Unusually large options activity: traders bought ~3,076 puts (≈566% above normal), signaling speculative or hedging bearish interest that can accelerate downward moves. (No external link)
• Negative Sentiment: Trading volume and volatility spiked on the selloff — heavy volume usually amplifies price moves and can create short‑term downside as liquidity is absorbed. Yahoo Finance: Q4 Miss & Stock Drop

PennyMac Financial Services Company Profile

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.