BTIG Research Reaffirms Buy Rating for PennyMac Financial Services (NYSE:PFSI)

Key Points

• BTIG Research has reiterated a buy rating for PennyMac Financial Services (NYSE:PFSI) with a target price of $135.00, suggesting a potential upside of 4.98% from its current price.
• Recently, a number of analysts have changed their ratings on PennyMac, with Zacks Research and Wells Fargo upgrading their assessments and target prices.
• PennyMac reported strong quarterly earnings with $3.37 per share, exceeding analyst expectations of $2.98 and reflecting a significant 53.7% year-over-year revenue increase.

PennyMac Financial Services (NYSE:PFSI - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at BTIG Research in a research report issued on Wednesday,Benzinga reports. They presently have a $135.00 target price on the real estate investment trust's stock. BTIG Research's target price would suggest a potential upside of 4.98% from the stock's current price.

A number of other equities research analysts have also recently weighed in on the company. Zacks Research raised PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a research note on Monday, October 6th. Wells Fargo & Company lifted their target price on PennyMac Financial Services from $115.00 to $135.00 and gave the company an "overweight" rating in a report on Wednesday. Keefe, Bruyette & Woods lowered PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $129.00 target price for the company. in a report on Tuesday, October 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of PennyMac Financial Services in a report on Wednesday, October 8th. Finally, Barclays set a $139.00 target price on PennyMac Financial Services in a report on Wednesday. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $134.71.

PennyMac Financial Services Trading Up 6.4%

Shares of NYSE PFSI traded up $7.69 during trading on Wednesday, reaching $128.60. The stock had a trading volume of 536,453 shares, compared to its average volume of 382,554. PennyMac Financial Services has a fifty-two week low of $85.74 and a fifty-two week high of $134.56. The company has a debt-to-equity ratio of 3.03, a quick ratio of 0.34 and a current ratio of 0.34. The business's 50-day moving average price is $117.19 and its 200-day moving average price is $104.18. The company has a market cap of $6.65 billion, a P/E ratio of 17.84 and a beta of 1.59.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings data on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.98 by $0.39. PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The business had revenue of $632.90 million during the quarter, compared to analysts' expectations of $573.46 million. During the same period in the previous year, the firm posted $1.30 earnings per share. The company's revenue was up 53.7% on a year-over-year basis. On average, equities research analysts predict that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Derek Stark sold 4,750 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $109.56, for a total value of $520,410.00. Following the transaction, the insider owned 20,621 shares in the company, valued at $2,259,236.76. The trade was a 18.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Joseph F. Mazzella sold 7,107 shares of the business's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total value of $768,693.12. Following the completion of the transaction, the director owned 86,050 shares in the company, valued at $9,307,168. This trade represents a 7.63% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 35,632 shares of company stock worth $3,998,816. Insiders own 15.80% of the company's stock.

Institutional Investors Weigh In On PennyMac Financial Services

Institutional investors have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. boosted its holdings in PennyMac Financial Services by 0.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,289,819 shares of the real estate investment trust's stock valued at $429,454,000 after purchasing an additional 24,055 shares in the last quarter. Lightrock Netherlands B.V. boosted its holdings in PennyMac Financial Services by 55.1% in the 1st quarter. Lightrock Netherlands B.V. now owns 136,055 shares of the real estate investment trust's stock valued at $13,643,000 after purchasing an additional 48,312 shares in the last quarter. Advantage Alpha Capital Partners LP boosted its holdings in PennyMac Financial Services by 26.3% in the 1st quarter. Advantage Alpha Capital Partners LP now owns 55,376 shares of the real estate investment trust's stock valued at $5,544,000 after purchasing an additional 11,528 shares in the last quarter. Maverick Capital Ltd. boosted its holdings in PennyMac Financial Services by 150.4% in the 1st quarter. Maverick Capital Ltd. now owns 8,073 shares of the real estate investment trust's stock valued at $808,000 after purchasing an additional 4,849 shares in the last quarter. Finally, Conversant Capital LLC boosted its stake in shares of PennyMac Financial Services by 25.1% during the 1st quarter. Conversant Capital LLC now owns 244,150 shares of the real estate investment trust's stock worth $24,442,000 after acquiring an additional 49,000 shares in the last quarter. Hedge funds and other institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.

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