Barclays Has Lowered Expectations for PennyMac Financial Services (NYSE:PFSI) Stock Price

Key Points

• Barclays lowered its price target for PennyMac Financial Services from $85 to $71 while maintaining an “equal weight” rating, implying approximately 13.66% upside from the prior close.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $103.12, although several firms recently reduced their targets and Wall Street Zen downgraded the shares to “Sell.”
• PFSI shares traded at $62.47, near their 52-week low, after the company missed quarterly earnings and revenue expectations; institutional investors own 57.87% of the stock.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its target price lowered by research analysts at Barclays from $85.00 to $71.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the real estate investment trust's stock. Barclays's price target suggests a potential upside of 13.66% from the company's previous close.

Several other research analysts also recently issued reports on PFSI. Wall Street Zen downgraded shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Keefe, Bruyette & Woods reduced their target price on shares of PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Wells Fargo & Company decreased their target price on PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. Stephens lowered their price target on PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 30th. Finally, BTIG Research reduced their price objective on PennyMac Financial Services from $105.00 to $90.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $103.12.

PennyMac Financial Services Stock Performance

Shares of PennyMac Financial Services stock traded up $0.47 during midday trading on Monday, hitting $62.47. The company had a trading volume of 129,254 shares, compared to its average volume of 665,678. The business's 50 day simple moving average is $72.51 and its two-hundred day simple moving average is $81.30. The stock has a market cap of $3.25 billion, a PE ratio of 8.59, a P/E/G ratio of 0.59 and a beta of 1.45. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38. PennyMac Financial Services has a 1-year low of $60.79 and a 1-year high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.The company had revenue of $496.96 million for the quarter, compared to the consensus estimate of $571.60 million. During the same period last year, the firm posted $2.54 EPS. The company's revenue was up 11.8% compared to the same quarter last year. As a group, equities analysts predict that PennyMac Financial Services will post 7.36 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. The Manufacturers Life Insurance Company bought a new stake in shares of PennyMac Financial Services in the 2nd quarter valued at approximately $1,713,000. BlueCrest Capital Management Ltd lifted its position in shares of PennyMac Financial Services by 12.8% during the 2nd quarter. BlueCrest Capital Management Ltd now owns 396,103 shares of the real estate investment trust's stock worth $34,501,000 after buying an additional 45,008 shares during the period. Legal & General Group Plc bought a new position in shares of PennyMac Financial Services during the 2nd quarter worth approximately $2,250,000. Donald Smith & CO. Inc. acquired a new stake in PennyMac Financial Services in the 2nd quarter valued at $163,940,000. Finally, BlackRock Inc. acquired a new stake in PennyMac Financial Services in the 2nd quarter valued at $202,735,000. Institutional investors and hedge funds own 57.87% of the company's stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc NYSE: PFSI is a financial services company focused on the U.S. residential mortgage market. Through its operating subsidiaries, the company originates, acquires, services and manages investments in residential mortgage loans and related assets.

PennyMac's business includes mortgage loan production through correspondent and consumer-direct channels, mortgage servicing and loan administration, and investment management activities. Its services support homeowners, mortgage originators and institutional investors across the residential lending lifecycle, including loan fulfillment, servicing and asset management.

The company was established in 2008 and serves customers and business partners throughout the United States.

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