PennyMac Financial Services, Inc. (NYSE:PFSI) Given Average Rating of "Hold" by Analysts

Key Points

• PennyMac Financial Services has an average analyst rating of "Hold", with 6 buy ratings, 2 hold ratings, and 2 sell ratings among 10 covering firms. The average 12-month price target is $122.75.
• The stock was trading around $80.60, near its 52-week low of $80.36 and well below its 52-week high of $160.36. The company also reported mixed quarterly results, with earnings per share of $2.19 missing estimates by a small margin.
• PennyMac recently paid a quarterly dividend of $0.30 per share, or $1.20 annualized, for a yield of about 1.5%. Insiders have also sold shares in recent months, though institutional ownership remains high at 57.87%.

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) have earned an average rating of "Hold" from the ten research firms that are presently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, two have given a hold rating and six have issued a buy rating on the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $122.75.

Several equities analysts recently commented on PFSI shares. Weiss Ratings downgraded PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. Keefe, Bruyette & Woods dropped their price objective on PennyMac Financial Services from $115.00 to $108.00 and set an "outperform" rating on the stock in a research note on Friday, May 8th. Wall Street Zen raised shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Stephens assumed coverage on shares of PennyMac Financial Services in a report on Friday, April 24th. They set an "equal weight" rating and a $100.00 target price on the stock. Finally, Barclays lowered their target price on shares of PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating on the stock in a report on Monday, May 11th.

PennyMac Financial Services Price Performance

PennyMac Financial Services stock opened at $80.60 on Thursday. PennyMac Financial Services has a 12 month low of $80.36 and a 12 month high of $160.36. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. The business's 50 day simple moving average is $88.36 and its 200 day simple moving average is $107.78. The company has a market cap of $4.18 billion, a price-to-earnings ratio of 8.57, a PEG ratio of 0.55 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings data 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). PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. The firm had revenue of $544.98 million during the quarter, compared to analysts' expectations of $546.17 million. During the same quarter in the previous year, the company posted $1.42 EPS. PennyMac Financial Services's revenue for the quarter was up 26.5% on a year-over-year basis. Sell-side analysts forecast that PennyMac Financial Services will post 10.68 EPS for the current year.

PennyMac Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Monday, May 18th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.20 dividend on an annualized basis and a yield of 1.5%. PennyMac Financial Services's payout ratio is presently 12.75%.

Insiders Place Their Bets

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 2,925 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $87.50, for a total transaction of $255,937.50. Following the sale, the chief financial officer owned 210,625 shares of the company's stock, valued at $18,429,687.50. The trade was a 1.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Spector sold 10,000 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total transaction of $879,900.00. Following the sale, the chief executive officer directly owned 60,604 shares in the company, valued at $5,332,545.96. The trade was a 14.16% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 45,361 shares of company stock worth $4,002,384 in the last three months. Insiders own 15.80% of the company's stock.

Institutional Investors Weigh In On PennyMac Financial Services

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC bought a new position in PennyMac Financial Services in the second quarter valued at $26,000. Caitong International Asset Management Co. Ltd increased its stake in PennyMac Financial Services by 7,600.0% in the fourth 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 during the last quarter. Strs Ohio bought a new position in PennyMac Financial Services in the first quarter valued at $30,000. Los Angeles Capital Management LLC bought a new position in PennyMac Financial Services in the fourth quarter valued at $31,000. Finally, GAMMA Investing LLC increased its stake in PennyMac Financial Services by 97.3% in the fourth 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 during the last quarter. Institutional investors own 57.87% of the company's stock.

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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