PennyMac Financial Services (NYSE:PFSI) Given New $85.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo lowered PennyMac Financial Services’ price target to $85 from $95 while maintaining an “overweight” rating, implying roughly 37% upside from the reported $61.87 share price.
• Analyst sentiment is mixed: the stock carries an overall “Hold” rating with an average target of $92.14, while several firms have recently reduced their targets and ratings.
• PennyMac’s latest quarter fell short of expectations, with EPS of $1.05 versus $1.27 expected and revenue of $502 million versus $531.77 million estimated; revenue declined 25.9% year over year.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price target cut by stock analysts at Wells Fargo & Company from $95.00 to $85.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has an "overweight" rating on the real estate investment trust's stock. Wells Fargo & Company's price objective indicates a potential upside of 37.39% from the stock's current price.

A number of other research firms also recently commented on PFSI. Keefe, Bruyette & Woods decreased their target price on PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Piper Sandler lowered their price objective on PennyMac Financial Services from $86.00 to $71.00 and set a "neutral" rating for the company in a research note on Friday, October 9th. Barclays decreased their target price on PennyMac Financial Services from $85.00 to $71.00 and set an "equal weight" rating on the stock in a report on Monday, October 5th. Stephens decreased their target price on shares of PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Finally, Weiss Ratings downgraded PennyMac Financial Services from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $92.14.

PennyMac Financial Services Stock Performance

NYSE PFSI traded down $2.54 on Friday, hitting $61.87. 526,978 shares of the company's stock traded hands, compared to its average volume of 666,359. PennyMac Financial Services has a 1-year low of $57.52 and a 1-year high of $160.36. The firm has a market capitalization of $3.21 billion, a PE ratio of 8.51 and a beta of 1.45. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22. The firm's 50-day moving average price is $66.27 and its two-hundred day moving average price is $85.44.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $1.05 EPS for the quarter, missing the consensus estimate of $1.27 by ($0.22). The company had revenue of $502.00 million during the quarter, compared to analyst estimates of $531.77 million. PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. PennyMac Financial Services's revenue for the quarter was down 25.9% compared to the same quarter last year. During the same period in the prior year, the business posted $3.37 EPS. As a group, analysts expect that PennyMac Financial Services will post 6.72 EPS for the current year.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently made changes to their positions in PFSI. QRG Capital Management Inc. boosted its holdings in PennyMac Financial Services by 7.5% in the second quarter. QRG Capital Management Inc. now owns 3,881 shares of the real estate investment trust's stock worth $338,000 after acquiring an additional 271 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in PennyMac Financial Services during the 2nd quarter worth approximately $25,000. Pictet Asset Management Holding SA grew its position in shares of PennyMac Financial Services by 6.3% during the first quarter. Pictet Asset Management Holding SA now owns 5,518 shares of the real estate investment trust's stock worth $482,000 after acquiring an additional 329 shares during the last quarter. GAMMA Investing LLC boosted its holdings in PennyMac Financial Services by 313.2% in the 3rd quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust's stock valued at $27,000 after purchasing an additional 332 shares in the last quarter. Finally, Silvant Capital Management LLC purchased a new stake in PennyMac Financial Services during the second quarter worth $34,000. Hedge funds and other institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc NYSE: PFSI is a specialty financial services company focused on the U.S. residential mortgage market. Through its subsidiaries, the company originates, acquires, and services residential mortgage loans, with an emphasis on conventional, government-backed, and other mortgage products.

PennyMac's primary businesses include mortgage production, loan servicing, and investment management. Its production platform acquires and originates loans through correspondent relationships with banks and other lenders, as well as through direct-to-consumer and broker channels.

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