PennyMac Financial Services (NYSE:PFSI) Stock Rating Cut to "Hold" at Keefe, Bruyette & Woods

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was downgraded by equities researchers at Keefe, Bruyette & Woods from a "moderate buy" rating to a "hold" rating in a report issued on Monday, MarketBeat.com reports. They presently have a $80.00 target price on the real estate investment trust's stock, down from their prior target price of $100.00. Keefe, Bruyette & Woods's target price indicates a potential upside of 22.52% from the stock's current price.

Other equities research analysts have also issued research reports about the company. Piper Sandler reduced their price target on PennyMac Financial Services from $86.00 to $71.00 and set a "neutral" rating on the stock in a research report on Friday, October 9th. BTIG Research lowered their price objective on PennyMac Financial Services from $90.00 to $80.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Barclays cut their price objective on PennyMac Financial Services from $85.00 to $71.00 and set an "equal weight" rating on the stock in a research note on Monday, October 5th. Wells Fargo & Company reduced their target price on PennyMac Financial Services from $95.00 to $85.00 and set an "overweight" rating on the stock in a report on Friday. Finally, Weiss Ratings downgraded shares of PennyMac Financial Services from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $88.71.

PennyMac Financial Services Price Performance

PFSI stock opened at $65.30 on Monday. The company has a market capitalization of $3.39 billion, a P/E ratio of 14.67 and a beta of 1.45. The company has a fifty day moving average price of $65.81 and a 200-day moving average price of $84.62. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. PennyMac Financial Services has a 52-week low of $57.52 and a 52-week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings data 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). The business had revenue of $502.00 million during the quarter, compared to the consensus estimate of $531.77 million. PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%. The business'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 firm earned $3.37 EPS. As a group, equities analysts expect that PennyMac Financial Services will post 6.78 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in PennyMac Financial Services during the second quarter worth approximately $25,000. GAMMA Investing LLC increased its holdings in PennyMac Financial Services by 313.2% in the third quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 332 shares in the last quarter. Silvant Capital Management LLC acquired a new position in PennyMac Financial Services in the second quarter valued at approximately $34,000. Freestone Grove Partners LP acquired a new position in PennyMac Financial Services in the second quarter valued at approximately $41,000. Finally, Covestor Ltd boosted its holdings in shares of PennyMac Financial Services by 82.0% during the 3rd quarter. Covestor Ltd now owns 770 shares of the real estate investment trust's stock worth $48,000 after buying an additional 347 shares in the last quarter. 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 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.