PennyMac Financial Services (NYSE:PFSI) Releases Earnings Results, Beats Expectations By $0.39 EPS

Key Points

• PennyMac Financial Services reported an EPS of $3.37 for the quarter, exceeding analysts' estimates of $3.00 by $0.37.
• Analyst ratings have shifted, with Zacks raising the stock from "strong sell" to "hold," while Barclays and Piper Sandler increased their price targets to $136.00.
• CEO David Spector sold 5,000 shares, decreasing his position by 3.98%, as insiders have sold a total of 35,632 shares valued at nearly $4 million over the past 90 days.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) posted its earnings results on Tuesday. The real estate investment trust reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.98 by $0.39, Zacks reports. PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.During the same quarter in the prior year, the company earned $1.30 earnings per share. The firm's revenue was up 53.7% compared to the same quarter last year.

PennyMac Financial Services Price Performance

PFSI stock traded down $0.50 during midday trading on Tuesday, reaching $120.90. The company had a trading volume of 418,599 shares, compared to its average volume of 328,485. The company has a market capitalization of $6.25 billion, a price-to-earnings ratio of 16.77 and a beta of 1.59. The stock has a 50 day moving average price of $117.19 and a 200-day moving average price of $104.18. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $130.02. The company has a debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34.

Insider Buying and Selling

In other PennyMac Financial Services news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $118.42, for a total value of $592,100.00. Following the transaction, the chief executive officer owned 120,604 shares in the company, valued at $14,281,925.68. The trade was a 3.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Derek Stark sold 4,750 shares of PennyMac Financial Services stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $109.56, for a total value of $520,410.00. Following the completion of the transaction, the insider owned 20,621 shares in the company, valued at approximately $2,259,236.76. This represents a 18.72% decrease in their position. The disclosure for this sale can be found here. Insiders sold 35,632 shares of company stock worth $3,998,816 in the last ninety days. 15.80% of the stock is owned by company insiders.

Institutional Trading of PennyMac Financial Services

Several hedge funds and other institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of PennyMac Financial Services by 0.7% during 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 during the last quarter. EverSource Wealth Advisors LLC bought a new stake in shares of PennyMac Financial Services during the second quarter worth about $26,000. Osaic Holdings Inc. grew its holdings in shares of PennyMac Financial Services by 9.3% during the second quarter. Osaic Holdings Inc. now owns 3,381 shares of the real estate investment trust's stock worth $337,000 after purchasing an additional 289 shares during the last quarter. Strs Ohio bought a new stake in shares of PennyMac Financial Services during the first quarter worth about $30,000. Finally, CANADA LIFE ASSURANCE Co grew its holdings in shares of PennyMac Financial Services by 4.1% during the second quarter. CANADA LIFE ASSURANCE Co now owns 16,073 shares of the real estate investment trust's stock worth $1,602,000 after purchasing an additional 626 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

PFSI has been the subject of a number of research reports. Weiss Ratings reissued a "hold (c)" rating on shares of PennyMac Financial Services in a report on Wednesday, October 8th. Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Monday, September 29th. Keefe, Bruyette & Woods downgraded PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $129.00 target price for the company. in a report on Tuesday, October 7th. Zacks Research raised PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a report on Monday, October 6th. Finally, UBS Group boosted their price target on PennyMac Financial Services from $110.00 to $135.00 and gave the company a "neutral" rating in a research note on Friday, October 10th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $130.17.

About PennyMac Financial Services

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.