PennyMac Financial Services (NYSE:PFSI) Stock Gets Price Target Trim from Barclays

Key Points

• Barclays cut PennyMac Financial Services’ price target from $71 to $67 while maintaining an “equal weight” rating, implying only 2.61% upside from the stock’s $65.30 price.
• Analyst sentiment has weakened, with several firms lowering targets; the stock carries a consensus “Hold” rating and an average price target of $88.71.
• PennyMac’s latest quarterly results missed expectations: EPS was $1.05 versus $1.27 estimated, revenue fell 25.9% year over year to $502 million, and earnings declined from $3.37 per share in the prior-year quarter.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its target price reduced by Barclays from $71.00 to $67.00 in a research note issued on Monday, Benzinga reports. The firm currently has an "equal weight" rating on the real estate investment trust's stock. Barclays's price target would indicate a potential upside of 2.61% from the company's current price.

A number of other brokerages have also recently issued reports on PFSI. Wells Fargo & Company cut their target price on shares of PennyMac Financial Services from $95.00 to $85.00 and set an "overweight" rating for the company in a research report on Friday. BTIG Research lowered their price target on shares of PennyMac Financial Services from $90.00 to $80.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Wall Street Zen cut shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Weiss Ratings lowered PennyMac Financial Services from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday. Finally, Piper Sandler lowered their target price on PennyMac Financial Services from $86.00 to $71.00 and set a "neutral" rating on the stock in a report on Friday, October 9th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $88.71.

PennyMac Financial Services Stock Performance

Shares of NYSE PFSI traded up $2.38 during mid-day trading on Monday, hitting $65.30. 700,342 shares of the company were exchanged, compared to its average volume of 669,135. The firm has a market cap of $3.39 billion, a price-to-earnings ratio of 14.67 and a beta of 1.48. The stock has a 50 day simple moving average of $66.01 and a 200-day simple moving average of $85.02. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22. PennyMac Financial Services has a 1-year low of $57.52 and a 1-year high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The real estate investment trust reported $1.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.27 by ($0.22). PennyMac Financial Services had a return on equity of 8.20% and a net margin of 11.72%. The business had revenue of $502.00 million during the quarter, compared to analysts' expectations of $531.77 million. During the same quarter in the previous year, the company posted $3.37 EPS. The company's revenue was down 25.9% compared to the same quarter last year. On average, sell-side analysts forecast that PennyMac Financial Services will post 6.78 EPS for the current fiscal year.

Institutional Trading of PennyMac Financial Services

Hedge funds have recently bought and sold shares of the company. Covestor Ltd raised its holdings in PennyMac Financial Services by 82.0% in the 3rd quarter. Covestor Ltd now owns 770 shares of the real estate investment trust's stock valued at $48,000 after acquiring an additional 347 shares during the last quarter. State of Wyoming boosted its holdings in shares of PennyMac Financial Services by 10.2% during the third quarter. State of Wyoming now owns 5,809 shares of the real estate investment trust's stock worth $359,000 after purchasing an additional 536 shares during the last quarter. Berman McAleer LLC acquired a new stake in shares of PennyMac Financial Services during the third quarter worth $370,000. GAMMA Investing LLC boosted its holdings in shares of 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 purchasing an additional 332 shares during the last quarter. Finally, Versant Capital Management Inc purchased a new stake in shares of PennyMac Financial Services in the third quarter valued at $71,000. 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 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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