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

Key Points

• PennyMac Financial Services has a consensus analyst rating of “Hold”, with 6 buy ratings, 2 holds, and 2 sells among 10 analysts. The average 12-month price target is about $117.13.
• The company recently reported Q1 earnings of $2.19 per share, slightly below estimates of $2.22, while revenue of $544.98 million also came in just under expectations. Revenue still rose 26.5% year over year.
• Insiders have been selling shares recently, including CEO David Spector and CFO Daniel Stanley Perotti, with 25,868 shares sold over the last 90 days. Institutional ownership remains high at 57.87%.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) has received an average recommendation of "Hold" from the ten analysts that are covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and six have given a buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $117.1250.

PFSI has been the topic of a number of analyst reports. Piper Sandler decreased their price objective on shares of PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 6th. Weiss Ratings cut shares of PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, May 6th. BTIG Research decreased their price objective on shares of PennyMac Financial Services from $150.00 to $105.00 and set a "buy" rating on the stock in a research report on Tuesday, June 16th. Barclays decreased their price objective on shares of PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating on the stock in a research report on Monday, May 11th. Finally, Zacks Research cut shares of PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research report on Friday, May 8th.

PennyMac Financial Services Price Performance

PFSI stock opened at $86.02 on Monday. The firm's 50-day moving average price is $85.94 and its two-hundred day moving average price is $102.01. PennyMac Financial Services has a 12-month low of $77.67 and a 12-month high of $160.36. The stock has a market capitalization of $4.47 billion, a price-to-earnings ratio of 9.14, a PEG ratio of 0.56 and a beta of 1.44. 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 (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). 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 firm posted $1.42 EPS. PennyMac Financial Services's revenue was up 26.5% compared to the same quarter last year. As a group, equities analysts predict that PennyMac Financial Services will post 10.68 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were paid 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 dividend yield of 1.4%. PennyMac Financial Services's payout ratio is presently 12.75%.

Insider Activity

In other news, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction dated 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 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 position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction dated 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 directly owned 210,625 shares in the company, valued at $18,429,687.50. The trade was a 1.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 25,868 shares of company stock valued at $2,304,610. Corporate insiders own 15.80% of the company's stock.

Institutional Investors Weigh In On PennyMac Financial Services

A number of large investors have recently modified their holdings of the stock. AQR Capital Management LLC lifted its position in PennyMac Financial Services by 3.8% during the 1st quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust's stock valued at $2,404,000 after acquiring an additional 875 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in PennyMac Financial Services by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust's stock worth $1,594,000 after purchasing an additional 706 shares during the period. Intech Investment Management LLC grew its holdings in PennyMac Financial Services by 5.8% in the first quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust's stock worth $1,540,000 after purchasing an additional 840 shares during the period. Strs Ohio purchased a new stake in PennyMac Financial Services in the first quarter worth about $30,000. Finally, Prudential Financial Inc. grew its holdings in PennyMac Financial Services by 82.8% in the second quarter. Prudential Financial Inc. now owns 4,084 shares of the real estate investment trust's stock worth $413,000 after purchasing an additional 1,850 shares during the period. 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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