PennyMac Financial Services (NYSE:PFSI) Releases Earnings Results, Misses Expectations By $1.99 EPS

PennyMac Financial Services (NYSE:PFSI - Get Free Report) released its quarterly earnings results on Tuesday. The real estate investment trust reported $1.02 EPS for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99), Zacks reports. PennyMac Financial Services had a return on equity of 12.34% and a net margin of 22.00%. The firm had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. During the same quarter last year, the company earned $1.85 earnings per share. The firm's revenue for the quarter was up 9.5% on a year-over-year basis.

PennyMac Financial Services Stock Performance

Shares of PFSI stock traded down $2.40 during mid-day trading on Thursday, hitting $94.16. 327,582 shares of the stock were exchanged, compared to its average volume of 374,550. The stock's fifty day simple moving average is $98.28 and its two-hundred day simple moving average is $99.76. The stock has a market capitalization of $4.86 billion, a price-to-earnings ratio of 13.07, a P/E/G ratio of 0.22 and a beta of 1.53. PennyMac Financial Services has a 12-month low of $85.74 and a 12-month high of $119.13. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.30 and a current ratio of 0.30.

PennyMac Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Wednesday, August 13th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.27%. The ex-dividend date of this dividend is Wednesday, August 13th. PennyMac Financial Services's dividend payout ratio (DPR) is presently 16.64%.

Insiders Place Their Bets

In other PennyMac Financial Services news, CEO David Spector sold 5,000 shares of the firm's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $100.81, for a total transaction of $504,050.00. Following the transaction, the chief executive officer owned 135,604 shares of the company's stock, valued at approximately $13,670,239.24. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph F. Mazzella sold 11,000 shares of the firm's stock in a transaction dated Friday, May 2nd. The stock was sold at an average price of $98.23, for a total value of $1,080,530.00. Following the transaction, the director directly owned 92,863 shares in the company, valued at approximately $9,121,932.49. The trade was a 10.59% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 36,500 shares of company stock valued at $3,616,005. 15.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PennyMac Financial Services

A number of hedge funds and other institutional investors have recently made changes to their positions in PFSI. AQR Capital Management LLC grew its holdings in shares of PennyMac Financial Services by 3.8% during the first quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust's stock worth $2,404,000 after buying an additional 875 shares during the last quarter. Intech Investment Management LLC lifted its position 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 valued at $1,540,000 after purchasing an additional 840 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position 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 valued at $1,594,000 after purchasing an additional 706 shares during the period. Finally, Strs Ohio acquired a new stake in PennyMac Financial Services in the first quarter valued at about $30,000. Hedge funds and other institutional investors own 57.87% of the company's stock.

Analysts Set New Price Targets

PFSI has been the topic of several analyst reports. Keefe, Bruyette & Woods reduced their price objective on PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating on the stock in a research note on Thursday. UBS Group reduced their price objective on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research note on Thursday. Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating on the stock in a research note on Wednesday. Barclays reduced their price objective on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 8th. Finally, Piper Sandler dropped their target price on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a report on Wednesday. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $118.67.

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.