PennyMac Financial Services (NYSE:PFSI) Cut to Equal Weight at Barclays

Key Points

• Barclays downgraded PennyMac Financial Services from overweight to equal weight and kept a $93 price target, which still implies about 11.16% upside from the prior close.
• Analyst sentiment is mixed: several firms have recently cut price targets or changed ratings, and MarketBeat shows a current consensus rating of Hold with an average target price of $114.62.
• The company reported Q1 earnings of $2.19 per share, slightly below estimates, while revenue was also a bit under expectations; meanwhile, insiders including the CEO and CFO sold shares in recent Rule 10b5-1 transactions.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was downgraded by analysts at Barclays from an "overweight" rating to an "equal weight" rating in a report issued on Tuesday, Marketbeat reports. They presently have a $93.00 target price on the real estate investment trust's stock. Barclays's price objective indicates a potential upside of 11.16% from the company's previous close.

Other research analysts have also recently issued research reports about the company. BTIG Research cut their target price on PennyMac Financial Services from $150.00 to $105.00 and set a "buy" rating on the stock in a research note on Tuesday, June 16th. Weiss Ratings cut PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, May 6th. Piper Sandler cut their price objective on PennyMac Financial Services from $112.00 to $106.00 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. Wells Fargo & Company cut their price objective on PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 6th. Finally, Wall Street Zen upgraded PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $114.62.

PennyMac Financial Services Price Performance

PFSI stock opened at $83.66 on Tuesday. The stock has a market cap of $4.34 billion, a PE ratio of 8.89, a P/E/G ratio of 0.56 and a beta of 1.44. PennyMac Financial Services has a 12 month low of $77.67 and a 12 month high of $160.36. The company has a 50-day moving average price of $85.07 and a 200 day moving average price of $100.08. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share for the quarter, missing analysts' consensus estimates of $2.22 by ($0.03). The firm had revenue of $544.98 million during the quarter, compared to analysts' expectations of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The business's revenue for the quarter was up 26.5% compared to the same quarter last year. During the same period last year, the company earned $1.42 earnings per share. Equities research analysts anticipate that PennyMac Financial Services will post 10.43 earnings per share for the current year.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total transaction of $879,900.00. Following the completion of the sale, the chief executive officer directly owned 60,604 shares of the company's stock, valued at $5,332,545.96. The trade was a 14.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $87.50, for a total value of $255,937.50. Following the completion of the sale, the chief financial officer owned 210,625 shares of the company's stock, valued at $18,429,687.50. This represents a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 28,045 shares of company stock worth $2,493,770. Company insiders own 15.80% of the company's stock.

Institutional Trading of PennyMac Financial Services

Hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC bought a new stake in shares of PennyMac Financial Services in the 2nd quarter valued at about $26,000. Caitong International Asset Management Co. Ltd increased its position in shares of PennyMac Financial Services by 7,600.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock valued at $30,000 after acquiring an additional 228 shares during the period. Strs Ohio purchased a new position in shares of PennyMac Financial Services in the first quarter worth about $30,000. Los Angeles Capital Management LLC purchased a new position in PennyMac Financial Services during the 4th quarter worth approximately $31,000. Finally, GAMMA Investing LLC lifted 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 during the period. Hedge funds and other institutional investors own 57.87% of the company's stock.

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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