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

PennyMac Financial Services, Inc. (NYSE:PFSI) has received an average recommendation of “Hold” from the ten ratings firms that are covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, three have issued a hold rating and five have issued a buy rating on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $114.6250.

A number of equities analysts have weighed in on PFSI shares. Keefe, Bruyette & Woods dropped their target price on shares of PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating for the company in a research note on Friday, May 8th. Barclays cut shares of PennyMac Financial Services from an “overweight” rating to an “equal weight” rating and decreased their price target for the company from $107.00 to $93.00 in a research note on Tuesday, July 7th. Stephens began coverage on shares of PennyMac Financial Services in a report on Friday, April 24th. They issued an “equal weight” rating and a $100.00 price target for the company. Weiss Ratings cut shares of PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, May 6th. Finally, Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $110.00 to $100.00 and set an “overweight” rating on the stock in a report on Wednesday, May 6th.

PennyMac Financial Services Stock Performance

PennyMac Financial Services stock opened at $82.61 on Friday. The stock has a 50-day simple moving average of $83.55 and a 200 day simple moving average of $95.53. The stock has a market capitalization of $4.29 billion, a price-to-earnings ratio of 8.78, a P/E/G ratio of 0.60 and a beta of 1.44. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 3.63. 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 issued its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 EPS for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.03). The company had revenue of $544.98 million for the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The firm’s revenue was up 26.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.42 EPS. On average, research analysts anticipate that PennyMac Financial Services will post 9.77 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were given a dividend of $0.30 per share. The ex-dividend date was Monday, May 18th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. PennyMac Financial Services’s payout ratio is presently 12.75%.

Insider Activity

In related news, CEO David Spector sold 10,000 shares of PennyMac Financial Services 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 completion of the sale, the chief executive officer directly owned 60,604 shares in the company, valued at $5,332,545.96. This trade represents a 14.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Gregory L. Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $81.71, for a total value of $240,472.53. Following the completion of the sale, the chief accounting officer owned 48,968 shares of the company’s stock, valued at approximately $4,001,175.28. The trade was a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,045 shares of company stock valued at $1,565,470 over the last 90 days. 15.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd grew its position in shares of PennyMac Financial Services by 7,600.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock worth $30,000 after buying an additional 228 shares during the period. Los Angeles Capital Management LLC acquired a new position in PennyMac Financial Services in the fourth quarter valued at approximately $31,000. EverSource Wealth Advisors LLC bought a new position in PennyMac Financial Services in the second quarter valued at approximately $26,000. GAMMA Investing LLC boosted its stake 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 acquiring an additional 142 shares during the last quarter. Finally, Strs Ohio acquired a new stake in PennyMac Financial Services during the 1st quarter worth $30,000. 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.