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

Key Points

• Keefe, Bruyette & Woods has increased its price target for PennyMac Financial Services from $117.00 to $121.00, indicating a potential upside of 8.91% from the previous close.
• The stock currently holds an average rating of "Moderate Buy" from analysts, with five analysts giving a Buy rating and one a Hold rating.
• Despite a recent quarterly earnings miss, PennyMac's revenue grew by 9.5% compared to the same period last year, generating $444.73 million.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price target boosted by analysts at Keefe, Bruyette & Woods from $117.00 to $121.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' target price would indicate a potential upside of 8.91% from the company's previous close.

A number of other equities research analysts also recently weighed in on PFSI. Piper Sandler dropped their price objective on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. Barclays reduced their price objective on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a research note on Tuesday, July 8th. UBS Group reduced their price target on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a research report on Thursday, July 24th. Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Friday, August 22nd. Finally, Wells Fargo & Company began coverage on PennyMac Financial Services in a research report on Monday, August 25th. They issued an "overweight" rating and a $115.00 price objective for the company. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $119.33.

PennyMac Financial Services Trading Up 1.6%

PennyMac Financial Services stock traded up $1.78 during mid-day trading on Wednesday, hitting $111.11. The company's stock had a trading volume of 50,236 shares, compared to its average volume of 375,515. PennyMac Financial Services has a one year low of $85.74 and a one year high of $119.13. 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 company has a 50 day moving average of $101.76 and a 200-day moving average of $99.26. The stock has a market cap of $5.75 billion, a PE ratio of 15.41 and a beta of 1.51.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The firm had revenue of $444.73 million for the quarter, compared to the consensus estimate of $547.44 million. During the same period in the previous year, the company posted $1.85 EPS. PennyMac Financial Services's quarterly revenue was up 9.5% compared to the same quarter last year. On average, research analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Buying and Selling

In related news, CEO David Spector sold 5,000 shares of the firm's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $105.73, for a total transaction of $528,650.00. Following the completion of the sale, the chief executive officer directly owned 130,604 shares of the company's stock, valued at approximately $13,808,760.92. This trade represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Joseph F. Mazzella sold 7,107 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total value of $768,693.12. Following the sale, the director directly owned 86,050 shares of the company's stock, valued at $9,307,168. The trade was a 7.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 26,857 shares of company stock valued at $2,813,253. 15.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PennyMac Financial Services

A number of hedge funds and other institutional investors have recently bought and sold shares of PFSI. EverSource Wealth Advisors LLC purchased a new position in PennyMac Financial Services during the 2nd quarter valued at about $26,000. CWM LLC boosted its holdings in PennyMac Financial Services by 71.5% during the 1st quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock valued at $27,000 after acquiring an additional 113 shares during the period. Strs Ohio purchased a new position in PennyMac Financial Services during the 1st quarter valued at about $30,000. Bayforest Capital Ltd purchased a new position in PennyMac Financial Services during the 2nd quarter valued at about $62,000. Finally, Raymond James Financial Inc. purchased a new position in PennyMac Financial Services during the 2nd quarter valued at about $82,000. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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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