PennyMac Financial Services (NYSE:PFSI) Downgraded by Barclays to “Equal Weight”

PennyMac Financial Services (NYSE:PFSI) was downgraded by research analysts at Barclays from an “overweight” rating to an “equal weight” rating in a report issued on Tuesday, MarketBeat.com reports. They currently have a $93.00 price target on the real estate investment trust’s stock. Barclays‘s price target would indicate a potential upside of 11.16% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Zacks Research cut shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Friday, May 8th. Stephens initiated coverage on PennyMac Financial Services in a research note on Friday, April 24th. They issued an “equal weight” rating and a $100.00 price objective for the company. Weiss Ratings downgraded shares of PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note 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, BTIG Research dropped their price objective on shares of PennyMac Financial Services from $150.00 to $105.00 and set a “buy” rating on the stock in a research report on Tuesday, June 16th. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $114.62.

PennyMac Financial Services Price Performance

Shares of PennyMac Financial Services stock opened at $83.66 on Tuesday. The business has a 50 day simple moving average of $85.07 and a two-hundred day simple moving average of $100.08. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33. The stock has a market capitalization of $4.34 billion, a P/E ratio of 8.89, a PEG ratio of 0.56 and a beta of 1.44. PennyMac Financial Services has a 12 month low of $77.67 and a 12 month high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last announced its 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). The business had revenue of $544.98 million for the quarter, compared to analyst estimates of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The company’s revenue for the quarter was up 26.5% compared to the same quarter last year. During the same period last year, the firm earned $1.42 EPS. As a group, analysts predict that PennyMac Financial Services will post 10.43 EPS for the current fiscal year.

Insider Activity

In other PennyMac Financial Services news, CEO David Spector sold 10,000 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total value of $879,900.00. Following the completion of the transaction, the chief executive officer owned 60,604 shares in the company, valued at approximately $5,332,545.96. This represents a 14.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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 on Friday, May 15th. The shares were 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 of the company’s stock, valued at approximately $18,429,687.50. This trade represents a 1.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 28,045 shares of company stock valued at $2,493,770 in the last three months. 15.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Institutional investors and hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd lifted 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 valued at $30,000 after purchasing an additional 228 shares during the period. Los Angeles Capital Management LLC acquired a new position in PennyMac Financial Services during the fourth quarter worth about $31,000. EverSource Wealth Advisors LLC acquired a new position in PennyMac Financial Services during the second quarter worth about $26,000. GAMMA Investing LLC increased its holdings in 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 valued at $38,000 after buying an additional 142 shares in the last quarter. Finally, Strs Ohio purchased a new position in PennyMac Financial Services in the first quarter valued at about $30,000. 57.87% of the stock is owned by institutional investors and hedge funds.

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.