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

Key Points

• PennyMac Financial Services has an average analyst rating of “Moderate Buy”, with 6 buy ratings, 3 holds, and 1 sell. The average 12-month price target is $123.88.
• Several analysts recently lowered their price targets on PFSI, including Barclays, Keefe, Bruyette & Woods, Wells Fargo, and Piper Sandler, though most kept bullish ratings such as overweight or outperform.
• The company reported Q1 earnings of $2.19 per share, slightly below estimates, while revenue came in just under expectations at $544.98 million. PennyMac also announced a quarterly dividend of $0.30 per share, payable May 28.

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) have earned an average rating of "Moderate Buy" from the ten analysts that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and six have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $123.8750.

A number of research analysts recently issued reports on PFSI shares. Barclays dropped their target price on shares of PennyMac Financial Services from $136.00 to $116.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th. Keefe, Bruyette & Woods decreased their price target on shares of PennyMac Financial Services from $115.00 to $108.00 and set an "outperform" rating for the company in a research note on Friday. Wall Street Zen upgraded shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Saturday. Wells Fargo & Company cut their price objective on shares of PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, Piper Sandler reduced their target price on PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating for the company in a research note on Wednesday.

PennyMac Financial Services Price Performance

Shares of PFSI opened at $90.62 on Friday. PennyMac Financial Services has a 52-week low of $82.65 and a 52-week high of $160.36. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.34 and a current ratio of 0.34. The business's 50 day moving average price is $89.13 and its two-hundred day moving average price is $113.26. The firm has a market cap of $4.73 billion, a PE ratio of 9.63, a price-to-earnings-growth ratio of 0.59 and a beta of 1.49.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced 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). The company 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 11.02% and a net margin of 23.47%.The business's quarterly revenue was up 26.5% compared to the same quarter last year. During the same period last year, the business earned $1.42 EPS. On average, equities analysts anticipate that PennyMac Financial Services will post 10.68 EPS for the current year.

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Monday, May 18th will be issued a $0.30 dividend. The ex-dividend date is Monday, May 18th. This represents a $1.20 annualized dividend and a yield of 1.3%. PennyMac Financial Services's dividend payout ratio is presently 12.75%.

Insider Transactions at PennyMac Financial Services

In other news, insider Derek Stark sold 1,066 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $87.66, for a total transaction of $93,445.56. Following the completion of the sale, the insider owned 20,944 shares in the company, valued at $1,835,951.04. The trade was a 4.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO David Spector sold 10,000 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $92.83, for a total value of $928,300.00. Following the transaction, the chief executive officer directly owned 70,604 shares in the company, valued at $6,554,169.32. The trade was a 12.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 51,280 shares of company stock worth $4,630,853. 15.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC bought a new position in shares of PennyMac Financial Services in the second quarter valued at $26,000. Caitong International Asset Management Co. Ltd increased its position in shares of PennyMac Financial Services by 7,600.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock worth $30,000 after acquiring an additional 228 shares in the last quarter. Strs Ohio acquired a new stake in shares of PennyMac Financial Services in the 1st quarter worth about $30,000. Los Angeles Capital Management LLC acquired a new stake in shares of PennyMac Financial Services in the 4th quarter worth about $31,000. Finally, GAMMA Investing LLC lifted its position in PennyMac Financial Services by 97.3% in the 4th 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 in the last quarter. Institutional investors and hedge funds own 57.87% of the company's stock.

About PennyMac Financial Services

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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