PennyMac Financial Services (NYSE:PFSI) Given New $140.00 Price Target at Piper Sandler

Key Points

• Piper Sandler has raised its price target for PennyMac Financial Services (PFSI) from $136.00 to $140.00, suggesting a potential upside of 9.44% for the stock.
• The company's quarterly earnings exceeded estimates with $3.37 earnings per share, compared to the expected $2.98, alongside a revenue increase of 53.7% year-over-year.
• Currently, four analysts have rated PFSI as Buy, while four others have assigned it a Hold rating, resulting in a consensus rating of "Moderate Buy" with an average target price of $134.67.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price target boosted by Piper Sandler from $136.00 to $140.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the real estate investment trust's stock. Piper Sandler's price target points to a potential upside of 9.44% from the stock's current price.

PFSI has been the subject of several other research reports. Wall Street Zen raised shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Monday, September 29th. Barclays set a $139.00 target price on shares of PennyMac Financial Services in a report on Wednesday. UBS Group raised their target price on shares of PennyMac Financial Services from $110.00 to $135.00 and gave the stock a "neutral" rating in a report on Friday, October 10th. Keefe, Bruyette & Woods cut shares of PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $129.00 target price on the stock. in a report on Tuesday, October 7th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of PennyMac Financial Services in a research note on Wednesday, October 8th. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $134.67.

PennyMac Financial Services Stock Up 5.8%

PFSI traded up $7.02 during midday trading on Wednesday, reaching $127.93. The company's stock had a trading volume of 405,604 shares, compared to its average volume of 381,880. The firm has a market capitalization of $6.62 billion, a price-to-earnings ratio of 17.68 and a beta of 1.59. 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 1 year low of $85.74 and a 1 year high of $134.56. The stock's 50-day moving average is $117.19 and its 200-day moving average is $104.18.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings data on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.98 by $0.39. The business had revenue of $632.90 million for the quarter, compared to analysts' expectations of $573.46 million. PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The business's revenue was up 53.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.30 earnings per share. As a group, research analysts expect that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction on Friday, September 5th. The shares were sold at an average price of $116.63, for a total value of $341,142.75. Following the sale, the chief financial officer directly owned 225,250 shares in the company, valued at approximately $26,270,907.50. The trade was a 1.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Joseph F. Mazzella sold 7,107 shares of PennyMac Financial Services stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total transaction of $768,693.12. Following the completion of the sale, the director owned 86,050 shares in the company, valued at approximately $9,307,168. This represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 35,632 shares of company stock valued at $3,998,816. 15.80% of the stock is currently owned by insiders.

Institutional Trading of PennyMac Financial Services

A number of large investors have recently made changes to their positions in the business. Harbor Capital Advisors Inc. grew its holdings in PennyMac Financial Services by 26.3% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust's stock valued at $62,000 after purchasing an additional 105 shares during the last quarter. AlphaQuest LLC grew its holdings 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 last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in PennyMac Financial Services by 0.7% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust's stock valued at $1,598,000 after purchasing an additional 111 shares during the last quarter. CWM LLC grew its holdings in PennyMac Financial Services by 71.5% during the 1st quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock valued at $27,000 after purchasing an additional 113 shares during the last quarter. Finally, Hohimer Wealth Management LLC grew its holdings in PennyMac Financial Services by 5.4% during the 1st quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust's stock valued at $235,000 after purchasing an additional 121 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors.

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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