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

Key Points

• "Moderate Buy" consensus from nine analysts (six buys, three holds) with an average 1‑year target price of $131.14.
• In the most recent quarter PennyMac missed expectations, reporting EPS of $1.97 vs. $3.23 expected and revenue of $538.0M vs. $639.8M, although revenue rose 14.4% year‑over‑year.
• Shares opened at $92.62 with a market cap of $4.83B and a P/E of ~9.96; the company pays a $0.30 quarterly dividend (1.3% yield) and insiders sold about $3.7M of stock in the last 90 days while owning 15.8%.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) has been given a consensus rating of "Moderate Buy" by the nine research firms that are currently covering the company, MarketBeat.com reports. Three analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $131.1429.

A number of equities analysts recently weighed in on PFSI shares. Piper Sandler dropped their price target on PennyMac Financial Services from $137.00 to $122.00 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Jefferies Financial Group initiated coverage on shares of PennyMac Financial Services in a research note on Friday, December 19th. They set a "buy" rating and a $160.00 price objective for the company. Wells Fargo & Company decreased their target price on shares of PennyMac Financial Services from $135.00 to $110.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. BTIG Research reissued a "buy" rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Finally, Zacks Research upgraded shares of PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a report on Friday, April 3rd.

PennyMac Financial Services Stock Performance

PFSI opened at $92.62 on Wednesday. The firm has a market cap of $4.83 billion, a PE ratio of 9.96, a P/E/G ratio of 0.54 and a beta of 1.52. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.32. The business has a fifty day simple moving average of $89.99 and a 200-day simple moving average of $116.34. PennyMac Financial Services has a fifty-two week low of $82.65 and a fifty-two week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.23 by ($1.26). PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The company had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same period last year, the firm earned $1.95 earnings per share. The firm's revenue for the quarter was up 14.4% on a year-over-year basis. As a group, equities analysts predict that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.3%. The ex-dividend date was Friday, February 13th. PennyMac Financial Services's payout ratio is presently 12.90%.

Insider Activity

In other news, insider Derek Stark sold 1,066 shares of PennyMac Financial Services stock in a transaction 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 transaction, the insider owned 20,944 shares in the company, valued at approximately $1,835,951.04. The trade was a 4.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the company's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $93.30, for a total value of $272,902.50. Following the transaction, the chief financial officer directly owned 213,550 shares in the company, valued at $19,924,215. The trade was a 1.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 41,280 shares of company stock valued at $3,702,553 in the last 90 days. Company insiders own 15.80% of the company's stock.

Institutional Investors Weigh In On PennyMac Financial Services

A number of institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC acquired a new position in shares of PennyMac Financial Services in the 2nd quarter valued at about $26,000. Caitong International Asset Management Co. Ltd boosted its holdings 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 purchasing an additional 228 shares during the period. Strs Ohio acquired a new stake in shares of PennyMac Financial Services during the first quarter worth approximately $30,000. Los Angeles Capital Management LLC purchased a new position in PennyMac Financial Services during the fourth quarter valued at approximately $31,000. Finally, GAMMA Investing LLC grew its position in PennyMac Financial Services by 97.3% during the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock valued at $38,000 after purchasing an additional 142 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

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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