PennyMac Financial Services (NYSE:PFSI) Coverage Initiated by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo & Company has initiated coverage on PennyMac Financial Services (NYSE:PFSI) with an "overweight" rating and a price target of $115.00, suggesting a potential upside of 5.67% from its previous close.
• PennyMac reported earnings of $1.02 per share for the last quarter, significantly missing analysts' estimates of $3.01, while revenue also fell short at $444.73 million compared to expectations of $547.44 million.
• Insider selling was notable, with CEO David Spector and Director Joseph F. Mazzella selling significant shares, marking a 3.69% and 7.63% decrease in their ownership, respectively.

Wells Fargo & Company assumed coverage on shares of PennyMac Financial Services (NYSE:PFSI - Get Free Report) in a research note issued to investors on Monday. The brokerage set an "overweight" rating and a $115.00 price target on the real estate investment trust's stock. Wells Fargo & Company's price objective indicates a potential upside of 5.67% from the stock's previous close.

A number of other analysts also recently issued reports on PFSI. Wall Street Zen raised shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Friday. UBS Group lowered their price objective on shares of PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research note on Thursday, July 24th. Piper Sandler decreased their target price 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, July 23rd. Keefe, Bruyette & Woods decreased 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 note on Thursday, July 24th. Finally, Barclays decreased their target price 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. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, PennyMac Financial Services has a consensus rating of "Moderate Buy" and a consensus price target of $118.67.

PennyMac Financial Services Trading Down 0.8%

NYSE PFSI traded down $0.89 during trading on Monday, hitting $108.83. The company had a trading volume of 7,269 shares, compared to its average volume of 377,810. The company's fifty day moving average is $99.81 and its 200-day moving average is $98.88. The company has a market cap of $5.63 billion, a price-to-earnings ratio of 15.09 and a beta of 1.50. 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 has a one year low of $85.74 and a one year high of $119.13.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). The firm had revenue of $444.73 million for the quarter, compared to the consensus estimate of $547.44 million. PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The firm's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.85 earnings per share. On average, sell-side analysts predict that PennyMac Financial Services will post 13.77 earnings per share for the current year.

Insider Buying and Selling at PennyMac Financial Services

In other PennyMac Financial Services news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction on Monday, August 18th. The shares were sold at an average price of $105.73, for a total transaction of $528,650.00. Following the completion of the transaction, the chief executive officer directly owned 130,604 shares of the company's stock, valued at $13,808,760.92. The trade was a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joseph F. Mazzella sold 7,107 shares of PennyMac Financial Services stock in a transaction on Wednesday, August 13th. The stock was 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. The trade was a 7.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 22,107 shares of company stock valued at $2,292,843 over the last ninety days. 15.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. AlphaQuest LLC increased its position in PennyMac Financial Services by 4.4% during the 1st quarter. AlphaQuest LLC now owns 2,587 shares of the real estate investment trust's stock valued at $259,000 after purchasing an additional 110 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in PennyMac Financial Services by 0.7% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust's stock worth $1,598,000 after purchasing an additional 111 shares in the last quarter. CWM LLC raised its holdings in PennyMac Financial Services by 71.5% in the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 113 shares in the last quarter. Hohimer Wealth Management LLC raised its holdings in PennyMac Financial Services by 5.4% in the first quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust's stock worth $235,000 after purchasing an additional 121 shares in the last quarter. Finally, Legal & General Group Plc raised its holdings in PennyMac Financial Services by 0.5% in the second quarter. Legal & General Group Plc now owns 35,478 shares of the real estate investment trust's stock worth $3,535,000 after purchasing an additional 173 shares in the last quarter. Hedge funds and other institutional investors 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.

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