PennyMac Financial Services (NYSE:PFSI) Rating Lowered to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded PennyMac Financial Services from “sell” to “strong sell.” Analyst views are mixed overall: MarketBeat reports a consensus “hold” rating and an average price target of $88.71.
• PennyMac reported quarterly EPS of $1.05, below the $1.27 consensus, while revenue of $502 million also missed estimates and fell 25.9% year over year.
• PFSI opened at $60.64, near its 52-week low of $57.52 and well below its 52-week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Saturday, Wall Street Zen reports.

Several other equities research analysts have also recently commented on the stock. BTIG Research set a $80.00 price target on shares of PennyMac Financial Services and gave the stock a "buy" rating in a research report on Thursday. Wells Fargo & Company reduced their price objective on shares of PennyMac Financial Services from $95.00 to $85.00 and set an "overweight" rating for the company in a research note on Friday, October 30th. Keefe, Bruyette & Woods cut PennyMac Financial Services from a "moderate buy" rating to a "hold" rating and decreased their price objective for the company from $100.00 to $80.00 in a report on Monday, November 2nd. Weiss Ratings downgraded PennyMac Financial Services from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, October 29th. Finally, Stephens lowered their target price on PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $88.71.

PennyMac Financial Services Trading Down 0.2%

NYSE PFSI opened at $60.64 on Friday. PennyMac Financial Services has a 52 week low of $57.52 and a 52 week high of $160.36. The company has a debt-to-equity ratio of 3.12, a quick ratio of 0.29 and a current ratio of 0.29. The stock's 50 day moving average price is $64.17 and its two-hundred day moving average price is $80.68. The stock has a market capitalization of $3.15 billion, a price-to-earnings ratio of 13.63 and a beta of 1.48.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $1.05 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.22). PennyMac Financial Services had a return on equity of 8.18% and a net margin of 11.72%. The business had revenue of $502.00 million for the quarter, compared to the consensus estimate of $531.77 million. During the same period in the prior year, the business earned $3.37 earnings per share. PennyMac Financial Services's revenue was down 25.9% compared to the same quarter last year. As a group, analysts anticipate that PennyMac Financial Services will post 5.78 earnings per share for the current fiscal year.

Hedge Funds Weigh In On PennyMac Financial Services

A number of institutional investors have recently added to or reduced their stakes in the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of PennyMac Financial Services during the 2nd quarter worth about $25,000. Silvant Capital Management LLC bought a new position in PennyMac Financial Services during the second quarter worth about $34,000. GAMMA Investing LLC increased its position in PennyMac Financial Services by 313.2% during the third quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust's stock worth $27,000 after buying an additional 332 shares during the last quarter. Freestone Grove Partners LP acquired a new position in PennyMac Financial Services during the second quarter worth approximately $41,000. Finally, Covestor Ltd increased its position in PennyMac Financial Services by 82.0% during the third quarter. Covestor Ltd now owns 770 shares of the real estate investment trust's stock worth $48,000 after buying an additional 347 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

About PennyMac Financial Services

PennyMac Financial Services, Inc. is a mortgage banking company founded in 2008 and headquartered in Westlake Village, California. It operates primarily in the U.S. residential mortgage market, originating and acquiring home loans through correspondent, broker-direct and consumer-direct channels. The company also services residential mortgage loans for itself and other investors. Its servicing activities include collecting payments, managing escrow accounts and supporting borrowers throughout the life of their loans.

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