PennyMac Financial Services (NYSE:PFSI) Stock Gets Price Target Reduction from BTIG Research

Key Points

• BTIG Research lowered PennyMac Financial Services’ price target from $90 to $80 while maintaining a “buy” rating, implying approximately 33.6% upside from the stock’s $59.90 price.
• Analyst sentiment has weakened overall: the stock carries a consensus “hold” rating from MarketBeat, with four buys, four holds and two sells, and a consensus price target of $100.
• PennyMac’s latest quarterly results missed expectations, reporting $1.39 in EPS versus $2.11 estimated and revenue of $496.96 million versus $571.60 million expected; institutional investors nonetheless own 57.87% of the shares.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its target price cut by equities researchers at BTIG Research from $90.00 to $80.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has a "buy" rating on the real estate investment trust's stock. BTIG Research's target price suggests a potential upside of 33.55% from the company's current price.

A number of other analysts have also recently commented on the company. Keefe, Bruyette & Woods reduced their price objective on PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. Stephens dropped 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. Piper Sandler dropped their target price on PennyMac Financial Services from $86.00 to $71.00 and set a "neutral" rating on the stock in a research report on Friday. Wells Fargo & Company cut their price target on PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Wall Street Zen lowered shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $100.00.

PennyMac Financial Services Price Performance

PFSI opened at $59.90 on Monday. The company's 50-day simple moving average is $70.52 and its two-hundred day simple moving average is $80.43. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The stock has a market capitalization of $3.11 billion, a P/E ratio of 8.23, a P/E/G ratio of 0.59 and a beta of 1.45. PennyMac Financial Services has a 52-week low of $59.12 and a 52-week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 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 during the quarter, compared to the consensus estimate of $571.60 million. During the same quarter in the prior year, the firm earned $2.54 earnings per share. The business's revenue was up 11.8% compared to the same quarter last year. As a group, analysts predict that PennyMac Financial Services will post 7.09 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. MFN Partners Management LP bought a new position in PennyMac Financial Services in the 2nd quarter worth $394,719,083. BlackRock Inc. purchased a new stake in PennyMac Financial Services in the 2nd quarter worth $202,735,000. Donald Smith & CO. Inc. bought a new stake in PennyMac Financial Services during the second quarter valued at about $163,940,000. Bank of New York Mellon Corp bought a new stake in PennyMac Financial Services during the second quarter valued at about $26,424,000. Finally, Bank of America Corp DE purchased a new position in shares of PennyMac Financial Services in the second quarter valued at about $24,930,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

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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