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

PennyMac Financial Services (NYSE:PFSI - Get Free Report) released its earnings results on Tuesday. The real estate investment trust reported $1.02 earnings per share 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 analysts' expectations of $547.44 million. During the same quarter in the previous year, the company posted $1.85 earnings per share. The firm's quarterly revenue was up 9.5% on a year-over-year basis.

PennyMac Financial Services Trading Up 0.7%

Shares of PFSI stock traded up $0.70 on Friday, reaching $93.96. 460,395 shares of the stock were exchanged, compared to its average volume of 479,377. The stock has a market cap of $4.85 billion, a P/E ratio of 13.03, a price-to-earnings-growth ratio of 0.20 and a beta of 1.53. The company has a quick ratio of 0.30, a current ratio of 0.30 and a debt-to-equity ratio of 2.96. The firm has a 50 day moving average of $97.93 and a two-hundred day moving average of $99.65. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $119.13.

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 paid a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $1.20 annualized dividend and a yield of 1.28%. PennyMac Financial Services's payout ratio is currently 16.64%.

Insider Buying and Selling

In other news, Director Joseph F. Mazzella sold 11,000 shares of the 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 completion of the sale, the director owned 92,863 shares in the company, valued at approximately $9,121,932.49. This trade represents a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David Spector sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $100.81, for a total value of $504,050.00. Following the sale, 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 position. The disclosure for this sale can be found here. In the last quarter, insiders sold 36,500 shares of company stock valued at $3,616,005. 15.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC boosted 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 valued at $2,404,000 after acquiring an additional 875 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in PennyMac Financial Services by 4.6% during the 1st 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. Intech Investment Management LLC boosted its stake in PennyMac Financial Services by 5.8% during the 1st 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. Finally, Strs Ohio acquired a new position in PennyMac Financial Services during the 1st quarter valued at about $30,000. 57.87% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

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