PennyMac Financial Services, Inc. (NYSE:PFSI) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Of 10 firms covering PennyMac Financial Services, four rate it a buy, four hold, and two sell. The average 12-month price target is $103.12.
• The stock opened at $62.91, near its 52-week low of $60.79 and well below its 52-week high of $160.36. Several analysts recently cut their price targets, including Wells Fargo, Keefe, Bruyette & Woods, and Stephens.
• PennyMac reported quarterly EPS of $1.39, missing the $2.11 consensus estimate, while revenue of $496.96 million also came in below expectations. The company paid a quarterly dividend of $0.30, equivalent to a 1.9% annual yield.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) has been given an average recommendation of "Hold" by the ten research firms that are presently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and four have issued a buy recommendation on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $103.12.

A number of equities analysts have commented on PFSI shares. Weiss Ratings restated a "sell (d+)" rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Wall Street Zen downgraded PennyMac Financial Services from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Wells Fargo & Company lowered their price objective 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. Keefe, Bruyette & Woods dropped their target price on PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Finally, Stephens reduced their price target on shares of PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating for the company in a report on Thursday, July 30th.

PennyMac Financial Services Trading Down 0.1%

PennyMac Financial Services stock opened at $62.91 on Wednesday. PennyMac Financial Services has a 1 year low of $60.79 and a 1 year high of $160.36. The firm's 50-day moving average is $71.62 and its 200-day moving average is $80.96. 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 company has a market cap of $3.27 billion, a P/E ratio of 8.64, a PEG ratio of 0.59 and a beta of 1.45.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share for the quarter, missing analysts' consensus estimates of $2.11 by ($0.72). The business had revenue of $496.96 million for the quarter, compared to the consensus estimate of $571.60 million. PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. PennyMac Financial Services's quarterly revenue was up 11.8% on a year-over-year basis. During the same period in the prior year, the company earned $2.54 EPS. On average, equities analysts expect that PennyMac Financial Services will post 7.36 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were given a $0.30 dividend. The ex-dividend date was Monday, August 17th. This represents a $1.20 annualized dividend and a yield of 1.9%. PennyMac Financial Services's dividend payout ratio is 16.48%.

Institutional Investors Weigh In On PennyMac Financial Services

A number of hedge funds have recently made changes to their positions in the business. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in PennyMac Financial Services in the 2nd quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd boosted its position in PennyMac Financial Services by 7,600.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock worth $30,000 after acquiring an additional 228 shares during the period. Silvant Capital Management LLC acquired a new position in PennyMac Financial Services during the 2nd quarter worth $34,000. Freestone Grove Partners LP bought a new position in shares of PennyMac Financial Services in the second quarter worth $41,000. Finally, Versant Capital Management Inc bought a new position in shares of PennyMac Financial Services in the third quarter worth $71,000. Institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Company Profile

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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