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

Key Points

• PennyMac Financial Services has received a consensus recommendation of "Moderate Buy" from analysts, with four firms rating it a buy and four a hold.
• Analysts have set an average price target of $130.17 for the stock, reflecting optimistic projections about its performance.
• The company reported earnings of $3.37 per share for the last quarter, surpassing expectations and showing a 53.7% year-over-year revenue increase.

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eight analysts that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $130.1667.

A number of equities research analysts recently issued reports on the stock. Piper Sandler upped their price objective on shares of PennyMac Financial Services from $121.00 to $136.00 and gave the stock an "overweight" rating in a report on Wednesday, October 8th. UBS Group boosted their target price on shares of PennyMac Financial Services from $110.00 to $135.00 and gave the stock a "neutral" rating in a research report on Friday, October 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of PennyMac Financial Services in a research note on Wednesday, October 8th. Barclays increased their target price on PennyMac Financial Services from $119.00 to $136.00 and gave the company an "overweight" rating in a research note on Monday, October 6th. Finally, Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Monday, September 29th.

PennyMac Financial Services Trading Down 0.4%

Shares of NYSE:PFSI opened at $120.90 on Wednesday. The stock has a market capitalization of $6.25 billion, a PE ratio of 16.77 and a beta of 1.59. PennyMac Financial Services has a 1 year low of $85.74 and a 1 year high of $130.02. The firm has a fifty day moving average price of $117.19 and a 200 day moving average price of $104.18. 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 issued its quarterly earnings data on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.98 by $0.39. The firm had revenue of $632.90 million during the quarter, compared to analysts' expectations of $573.46 million. PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. PennyMac Financial Services's revenue for the quarter was up 53.7% on a year-over-year basis. During the same period in the prior year, the company posted $1.30 earnings per share. Analysts expect that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Derek Stark sold 4,750 shares of the company's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $109.56, for a total transaction of $520,410.00. Following the completion of the transaction, the insider owned 20,621 shares of the company's stock, valued at approximately $2,259,236.76. This represents a 18.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph F. Mazzella sold 7,107 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total transaction of $768,693.12. Following the transaction, the director directly owned 86,050 shares of the company's stock, valued at $9,307,168. This represents a 7.63% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 35,632 shares of company stock worth $3,998,816. Corporate insiders own 15.80% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC acquired a new position in shares of PennyMac Financial Services during the second quarter valued at about $26,000. CWM LLC raised its position in shares of PennyMac Financial Services by 71.5% during the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock valued at $27,000 after buying an additional 113 shares during the last quarter. Strs Ohio acquired a new position in shares of PennyMac Financial Services during the first quarter valued at about $30,000. Harbor Capital Advisors Inc. raised its position in shares of PennyMac Financial Services by 26.3% during the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust's stock valued at $62,000 after buying an additional 105 shares during the last quarter. Finally, Bayforest Capital Ltd acquired a new position in shares of PennyMac Financial Services during the second quarter valued at about $62,000. Institutional investors and hedge funds own 57.87% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.