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

Key Points

• PennyMac Financial Services has an average analyst rating of "Hold", based on coverage from 10 brokerages. The consensus 12-month price target is about $114.63.
• Recent analyst actions were mixed to negative, including downgrades from Barclays, Zacks Research, and Weiss Ratings, while Wells Fargo kept an overweight rating but lowered its target price to $100.
• The company reported Q1 earnings of $2.19 per share, slightly below expectations, though revenue rose 26.5% year over year. PennyMac also paid a quarterly dividend of $0.30 per share, equal to a 1.5% yield.

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) have earned an average recommendation of "Hold" from the ten brokerages that are covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $114.6250.

A number of equities research analysts have weighed in on the stock. Stephens assumed coverage on shares of PennyMac Financial Services in a research note on Friday, April 24th. They set an "equal weight" rating and a $100.00 price target on the stock. Barclays cut shares of PennyMac Financial Services from an "overweight" rating to an "equal weight" rating and dropped their price objective for the company from $107.00 to $93.00 in a research note on Tuesday, July 7th. Zacks Research downgraded shares of PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a report on Friday, May 8th. Weiss Ratings lowered shares of PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, May 6th. Finally, Wells Fargo & Company lowered their target price on shares of PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 6th.

Insider Buying and Selling at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 2,925 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $87.50, for a total value of $255,937.50. Following the sale, the chief financial officer directly owned 210,625 shares in the company, valued at approximately $18,429,687.50. This represents a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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 stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total value of $879,900.00. Following the completion of the transaction, the chief executive officer directly owned 60,604 shares of the company's stock, valued at approximately $5,332,545.96. The trade was a 14.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 18,045 shares of company stock valued at $1,565,470. 15.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of PennyMac Financial Services in the fourth quarter valued at approximately $44,287,000. Y Intercept Hong Kong Ltd grew its position in PennyMac Financial Services by 210.4% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 43,605 shares of the real estate investment trust's stock worth $3,811,000 after acquiring an additional 29,557 shares during the last quarter. Clough Capital Partners L P bought a new stake in PennyMac Financial Services during the 4th quarter worth approximately $5,391,000. M&T Bank Corp acquired a new stake in PennyMac Financial Services during the 4th quarter valued at $5,095,000. Finally, Concentric Capital Strategies LP increased its holdings in PennyMac Financial Services by 420.3% during the 4th quarter. Concentric Capital Strategies LP now owns 86,478 shares of the real estate investment trust's stock valued at $11,401,000 after purchasing an additional 69,858 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Price Performance

Shares of PFSI stock opened at $82.61 on Friday. The stock has a 50 day moving average of $83.55 and a two-hundred day moving average of $95.53. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. PennyMac Financial Services has a 12 month low of $77.67 and a 12 month high of $160.36. The company has a market capitalization of $4.29 billion, a P/E ratio of 8.78, a P/E/G ratio of 0.60 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.22 by ($0.03). The firm had revenue of $544.98 million for the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. The business's revenue for the quarter was up 26.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.42 earnings per share. As a group, equities analysts expect that PennyMac Financial Services will post 9.77 EPS for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed 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. This represents a $1.20 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Monday, May 18th. PennyMac Financial Services's payout ratio is presently 12.75%.

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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