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

Key Points

• Analysts collectively rate PennyMac Financial Services “Hold.” Of 10 analysts, four recommend buying, four recommend holding, and two recommend selling; the average 12-month price target is $104.88.
• PFSI shares opened at $76.23, near the lower end of their 52-week range of $71.68 to $160.36. Recent analysts lowered several price targets, while the company’s latest quarterly EPS of $1.39 fell short of the $2.11 consensus estimate.
• The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 1.6% yield. Institutional investors own 57.87% of the stock, while insiders own 15.20%.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) has earned a consensus rating of "Hold" from the ten research firms that are presently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and four have issued a buy rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $104.8750.

PFSI has been the topic of several recent research reports. Zacks Research lowered PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research report on Friday, May 8th. Wall Street Zen downgraded PennyMac Financial Services from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Wells Fargo & Company cut their target price on PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Stephens reduced their target price on PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Finally, Piper Sandler cut PennyMac Financial Services from an "overweight" rating to a "neutral" rating and reduced their target price for the stock from $106.00 to $86.00 in a report on Thursday, July 30th.

PennyMac Financial Services Price Performance

Shares of PFSI stock opened at $76.23 on Tuesday. PennyMac Financial Services has a 52-week low of $71.68 and a 52-week high of $160.36. The stock has a market cap of $3.96 billion, a PE ratio of 10.47, a PEG ratio of 0.73 and a beta of 1.45. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The firm's 50 day moving average price is $81.62 and its two-hundred day moving average price is $87.33.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 EPS for the quarter, missing analysts' consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.The company's revenue was up 11.8% on a year-over-year basis. During the same quarter last year, the business posted $2.54 EPS. As a group, analysts forecast that PennyMac Financial Services will post 7.42 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Monday, August 17th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Monday, August 17th. PennyMac Financial Services's dividend payout ratio (DPR) is currently 16.48%.

Insiders Place Their Bets

In related news, CAO Gregory L. Hendry sold 2,943 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total transaction of $240,472.53. Following the completion of the transaction, the chief accounting officer owned 48,968 shares in the company, valued at approximately $4,001,175.28. The trade was a 5.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is owned by insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several large investors have recently bought and sold shares of PFSI. Public Employees Retirement System of Ohio acquired a new stake in PennyMac Financial Services in the second quarter worth $79,000. Corient Private Wealth LP acquired a new position in shares of PennyMac Financial Services in the 2nd quarter valued at $2,269,000. Palogic Value Management L.P. acquired a new position in shares of PennyMac Financial Services in the 2nd quarter valued at $1,046,000. Bank of America Corp DE bought a new stake in shares of PennyMac Financial Services in the 2nd quarter valued at $24,930,000. Finally, Basswood Capital Management L.L.C. bought a new stake in shares of PennyMac Financial Services in the 2nd quarter valued at $16,752,000. Institutional investors 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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