Keefe, Bruyette & Woods Increases PennyMac Financial Services (NYSE:PFSI) Price Target to $138.00

Key Points

• Keefe, Bruyette & Woods has raised its price target for PennyMac Financial Services (PFSI) from $129 to $138, indicating a potential upside of 3.65% from the previous close.
• The stock has received multiple upgrades from various analysts, with strong ratings and price targets, including Wells Fargo raising its target to $135 and UBS Group increasing theirs to $145.
• PennyMac Financial Services reported a stronger-than-expected quarterly earnings of $3.37 per share, significantly surpassing the consensus estimate of $2.98, while revenue also increased by approximately 53.7% year-over-year.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price objective increased by investment analysts at Keefe, Bruyette & Woods from $129.00 to $138.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "market perform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' target price suggests a potential upside of 3.65% from the company's previous close.

A number of other research analysts have also recently weighed in on PFSI. Wells Fargo & Company lifted their price objective on shares of PennyMac Financial Services from $115.00 to $135.00 and gave the company an "overweight" rating in a report on Wednesday. Barclays increased their price objective on PennyMac Financial Services from $136.00 to $139.00 and gave the company an "overweight" rating in a report on Wednesday. Piper Sandler boosted their price target on shares of PennyMac Financial Services from $136.00 to $140.00 and gave the company an "overweight" rating in a research report on Wednesday. Weiss Ratings reissued a "hold (c)" rating on shares of PennyMac Financial Services in a research report on Wednesday, October 8th. Finally, UBS Group lifted their price objective on shares of PennyMac Financial Services from $135.00 to $145.00 and gave the company a "neutral" rating in a research note on Friday. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $138.67.

PennyMac Financial Services Trading Up 3.6%

NYSE:PFSI traded up $4.59 on Friday, hitting $133.14. The stock had a trading volume of 224,809 shares, compared to its average volume of 385,995. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.03. The stock has a market cap of $6.88 billion, a price-to-earnings ratio of 14.37 and a beta of 1.59. The company has a fifty day moving average price of $118.00 and a two-hundred day moving average price of $104.58. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $134.56.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its earnings results on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, beating the consensus estimate of $2.98 by $0.39. The company had revenue of $632.90 million for the quarter, compared to analyst estimates of $573.46 million. PennyMac Financial Services had a net margin of 25.21% and a return on equity of 11.90%. PennyMac Financial Services's revenue was up 53.7% on a year-over-year basis. During the same period in the previous year, the business posted $1.30 EPS. Equities research analysts expect that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO David Spector sold 5,000 shares of the stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $118.42, for a total transaction of $592,100.00. Following the completion of the sale, the chief executive officer owned 120,604 shares of the company's stock, valued at approximately $14,281,925.68. This represents a 3.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the company's stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $116.63, for a total value of $341,142.75. Following the completion of the transaction, the chief financial officer directly owned 225,250 shares in the company, valued at approximately $26,270,907.50. The trade was a 1.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 35,632 shares of company stock valued at $3,998,816 over the last three months. Insiders own 15.80% of the company's stock.

Hedge Funds Weigh In On PennyMac Financial Services

Hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC acquired a new position in PennyMac Financial Services in the second quarter worth about $26,000. CWM LLC grew its position in shares of PennyMac Financial Services by 71.5% during the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after acquiring an additional 113 shares during the last quarter. Strs Ohio acquired a new stake in shares of PennyMac Financial Services in the first quarter valued at approximately $30,000. Bayforest Capital Ltd acquired a new position in PennyMac Financial Services during the 2nd quarter worth $62,000. Finally, Harbor Capital Advisors Inc. grew its stake in shares of PennyMac Financial Services by 26.3% in the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust's stock worth $62,000 after purchasing an additional 105 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

About PennyMac Financial Services

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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