PennyMac Financial Services, Inc. (NYSE:PFSI) Declares $0.30 Quarterly Dividend

Key Points

• $0.30 quarterly dividend declared (record date May 18, payable May 28), equivalent to $1.20 annually and a ~1.4% yield; the dividend has a low payout ratio (~8%), and analysts expect earnings to comfortably cover it.
• For the latest quarter PennyMac reported EPS of $2.19, slightly missing estimates, while revenue rose about 26.5% year-over-year to roughly $545 million, indicating solid top-line growth despite the EPS miss.
• PennyMac carries a consensus "Moderate Buy" rating with an average price target of $126 versus the recent ~$87.6 share price, trading at a PE near 9.4 and a market cap of about $4.6 billion.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) declared a quarterly dividend on Tuesday, May 5th. Investors of record on Monday, May 18th will be paid a dividend of 0.30 per share by the real estate investment trust on Thursday, May 28th. This represents a c) annualized dividend and a yield of 1.4%. The ex-dividend date is Monday, May 18th.

PennyMac Financial Services has increased its dividend by an average of 0.2%per year over the last three years and has increased its dividend every year for the last 1 years. PennyMac Financial Services has a dividend payout ratio of 8.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect PennyMac Financial Services to earn $16.32 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 7.4%.

PennyMac Financial Services Price Performance

NYSE PFSI opened at $87.63 on Wednesday. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.32. The stock has a market capitalization of $4.57 billion, a PE ratio of 9.39, a price-to-earnings-growth ratio of 0.52 and a beta of 1.49. The company has a 50 day moving average price of $89.25 and a two-hundred day moving average price of $113.69. PennyMac Financial Services has a 12-month low of $82.65 and a 12-month high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly 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 business had revenue of $544.98 million for the quarter, compared to analyst estimates of $546.17 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The business's revenue for the quarter was up 26.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.42 EPS. As a group, equities analysts predict that PennyMac Financial Services will post 12.05 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on PFSI shares. Wells Fargo & Company decreased their price objective on shares of PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating for the company in a report on Wednesday. Piper Sandler decreased their price target on PennyMac Financial Services from $137.00 to $122.00 and set an "overweight" rating for the company in a research note on Thursday, April 2nd. Keefe, Bruyette & Woods raised PennyMac Financial Services from a "market perform" rating to an "outperform" rating and set a $115.00 price objective on the stock in a report on Monday, March 16th. BTIG Research reissued a "buy" rating on shares of PennyMac Financial Services in a research note on Friday, January 30th. Finally, Zacks Research upgraded PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a report on Friday, April 3rd. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, PennyMac Financial Services presently has a consensus rating of "Moderate Buy" and an average price target of $126.00.

PennyMac Financial Services Company Profile

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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