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

Key Points

• PennyMac Financial Services, Inc. has received a consensus rating of "Moderate Buy" from analysts, with an average target price of $118.67.
• The company reported $1.02 earnings per share for the last quarter, missing analysts' estimates of $3.01, despite a year-over-year revenue increase of 9.5%.
• PennyMac Financial Services will pay a quarterly dividend of $0.30 per share, which represents an annualized yield of 1.2%.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) has been given a consensus rating of "Moderate Buy" by the six analysts that are presently covering the company, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $118.6667.

A number of equities research analysts have issued reports on PFSI shares. Barclays decreased their target price on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a research report on Tuesday, July 8th. Wells Fargo & Company cut their target price on shares of PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. Wall Street Zen downgraded PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. 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 note on Wednesday, July 23rd. Finally, UBS Group decreased their target price on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a research note on Thursday, July 24th.

Insider Buying and Selling

In other news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $100.81, for a total transaction of $504,050.00. Following the sale, the chief executive officer directly owned 135,604 shares in the company, valued at approximately $13,670,239.24. The trade was a 3.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 10,500 shares of the stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $99.45, for a total transaction of $1,044,225.00. Following the completion of the transaction, the chief financial officer directly owned 234,025 shares of the company's stock, valued at $23,273,786.25. This trade represents a 4.29% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 25,500 shares of company stock worth $2,535,475. 15.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently made changes to their positions in the company. AlphaQuest LLC grew its position in PennyMac Financial Services by 4.4% during the 1st quarter. AlphaQuest LLC now owns 2,587 shares of the real estate investment trust's stock worth $259,000 after acquiring an additional 110 shares during the last quarter. CWM LLC raised its stake in shares of PennyMac Financial Services by 71.5% in the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after acquiring an additional 113 shares during the last quarter. Hohimer Wealth Management LLC lifted its position in shares of PennyMac Financial Services by 5.4% during the first quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust's stock worth $235,000 after purchasing an additional 121 shares in the last quarter. Summit Investment Advisors Inc. grew its stake in shares of PennyMac Financial Services by 5.8% during the fourth quarter. Summit Investment Advisors Inc. now owns 2,797 shares of the real estate investment trust's stock valued at $286,000 after purchasing an additional 154 shares during the last quarter. Finally, Teacher Retirement System of Texas raised its position in PennyMac Financial Services by 4.2% in the 2nd quarter. Teacher Retirement System of Texas now owns 4,687 shares of the real estate investment trust's stock worth $467,000 after purchasing an additional 191 shares during the last quarter. Institutional investors and hedge funds own 57.87% of the company's stock.

PennyMac Financial Services Stock Down 0.6%

PennyMac Financial Services stock opened at $98.23 on Friday. The company has a market capitalization of $5.07 billion, a P/E ratio of 13.62 and a beta of 1.50. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $119.13. The firm's fifty day simple moving average is $97.80 and its 200-day simple moving average is $99.28. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.03.

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

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Wednesday, August 13th will be given a dividend of $0.30 per share. The ex-dividend date is Wednesday, August 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.2%. PennyMac Financial Services's payout ratio is currently 16.64%.

PennyMac Financial Services Company Profile

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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