Keefe, Bruyette & Woods Issues Pessimistic Forecast for PennyMac Financial Services (NYSE:PFSI) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target for PennyMac from $115 to $108 but kept an "outperform" rating, implying about a 21.7% upside from the stock's prior close.
• Analyst coverage is mixed but tilted positive: six Buys, three Holds and one Sell produce a MarketBeat consensus of "Moderate Buy" with a consensus price target of $123.88.
• PennyMac reported Q1 EPS of $2.19 (missed by $0.03) and revenue of $544.98M (slightly below estimates); the stock trades around $88.77, well below consensus targets, and insiders have been active—a director bought shares while insiders sold 51,280 shares in the past 90 days.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price target cut by Keefe, Bruyette & Woods from $115.00 to $108.00 in a report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' price target indicates a potential upside of 21.67% from the stock's previous close.

PFSI has been the subject of several other research reports. BTIG Research reiterated a "buy" rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Stephens initiated coverage on PennyMac Financial Services in a report on Friday, April 24th. They issued an "equal weight" rating and a $100.00 price target on the stock. Zacks Research raised PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a report on Friday, April 3rd. Barclays cut their price target on PennyMac Financial Services from $136.00 to $116.00 and set an "overweight" rating on the stock in a report on Monday, April 6th. Finally, Piper Sandler cut their price target on PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating on the stock in a report on Wednesday. Six analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $123.88.

PennyMac Financial Services Price Performance

Shares of PFSI opened at $88.77 on Friday. The firm has a market cap of $4.63 billion, a price-to-earnings ratio of 9.43, a PEG ratio of 0.51 and a beta of 1.49. The stock has a 50 day moving average of $89.13 and a 200-day moving average of $113.26. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32. PennyMac Financial Services has a 52 week low of $82.65 and a 52 week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 EPS for the quarter, missing the consensus estimate of $2.22 by ($0.03). The firm had revenue of $544.98 million during the quarter, compared to analyst estimates of $546.17 million. PennyMac Financial Services had a return on equity of 11.02% and a net margin of 23.47%.PennyMac Financial Services's revenue was up 26.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.42 EPS. As a group, analysts forecast that PennyMac Financial Services will post 11.8 EPS for the current year.

Insider Buying and Selling

In related news, Director Patrick Kinsella purchased 2,250 shares of the business's stock in a transaction that occurred on Thursday, February 12th. The shares were acquired at an average price of $89.15 per share, with a total value of $200,587.50. Following the acquisition, the director owned 34,210 shares in the company, valued at approximately $3,049,821.50. This trade represents a 7.04% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $92.83, for a total value of $928,300.00. Following the sale, the chief executive officer directly owned 70,604 shares in the company, valued at $6,554,169.32. The trade was a 12.41% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 51,280 shares of company stock worth $4,630,853. Company insiders own 15.80% of the company's stock.

Institutional Trading of PennyMac Financial Services

Hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC bought a new stake in PennyMac Financial Services during the 2nd quarter valued at $26,000. Caitong International Asset Management Co. Ltd raised its stake 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 valued at $30,000 after acquiring an additional 228 shares in the last quarter. Strs Ohio bought a new stake in PennyMac Financial Services during the 1st quarter valued at $30,000. Los Angeles Capital Management LLC bought a new stake in PennyMac Financial Services during the 4th quarter valued at $31,000. Finally, GAMMA Investing LLC raised its stake in PennyMac Financial Services by 97.3% during the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock valued at $38,000 after acquiring an additional 142 shares in the last quarter. Institutional investors own 57.87% of the company's stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc NYSE: PFSI is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.

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