PennyMac Financial Services (NYSE:PFSI) Price Target Cut to $110.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo & Company cut its price target on PennyMac from $135 to $110 but kept an "overweight" rating, implying about a 21.2% upside from the prior close.
• PennyMac missed quarterly estimates with EPS of $1.97 vs. $3.23 expected and revenue of $538.0M vs. $639.8M, while the stock trades around $90.76 (52‑week range $82.65–$160.36) and carries a consensus "Moderate Buy" rating with an average target of $131.14.
• Insider activity was mixed: director Patrick Kinsella bought 2,250 shares at ~$89.15 while CFO Daniel Perotti sold 2,925 shares at ~$93.30, and insiders sold 51,280 shares in the last quarter (insiders own 15.8% of the stock).

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price target reduced by equities research analysts at Wells Fargo & Company from $135.00 to $110.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the real estate investment trust's stock. Wells Fargo & Company's price objective suggests a potential upside of 21.20% from the company's previous close.

Other research analysts also recently issued reports about the company. Jefferies Financial Group began coverage on PennyMac Financial Services in a research note on Friday, December 19th. They set a "buy" rating and a $160.00 target price for the company. Weiss Ratings downgraded PennyMac Financial Services from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, January 20th. Barclays reduced their price objective on shares of PennyMac Financial Services from $136.00 to $116.00 and set an "overweight" rating for the company in a research report on Monday. BTIG Research reiterated a "buy" rating on shares of PennyMac Financial Services in a report on Friday, January 30th. Finally, Keefe, Bruyette & Woods upgraded shares of PennyMac Financial Services from a "market perform" rating to an "outperform" rating and set a $115.00 target price for the company in a research note on Monday, March 16th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $131.14.

PennyMac Financial Services Stock Down 0.9%

Shares of PFSI stock opened at $90.76 on Thursday. PennyMac Financial Services has a 52-week low of $82.65 and a 52-week high of $160.36. The stock has a market cap of $4.74 billion, a price-to-earnings ratio of 9.83, a PEG ratio of 0.52 and a beta of 1.52. The firm's 50-day moving average is $91.32 and its 200-day moving average is $117.25. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.34 and a current ratio of 0.34.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing analysts' consensus estimates of $3.23 by ($1.26). The business had revenue of $538.01 million for the quarter, compared to the consensus estimate of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The company's revenue for the quarter was up 14.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.95 EPS. Sell-side analysts predict that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Transactions at PennyMac Financial Services

In other PennyMac Financial Services news, Director Patrick Kinsella purchased 2,250 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were acquired at an average cost of $89.15 per share, with a total value of $200,587.50. Following the completion of the transaction, the director owned 34,210 shares in the company, valued at $3,049,821.50. The trade was a 7.04% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $93.30, for a total transaction of $272,902.50. Following the completion of the sale, the chief financial officer owned 213,550 shares of the company's stock, valued at approximately $19,924,215. The trade was a 1.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 51,280 shares of company stock worth $5,154,453 over the last quarter. 15.80% of the stock is currently owned by corporate insiders.

Institutional Trading of PennyMac Financial Services

Institutional investors have recently modified their holdings of the stock. Harbor Capital Advisors Inc. lifted its position in PennyMac Financial Services by 26.3% during the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust's stock worth $62,000 after purchasing an additional 105 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of PennyMac Financial Services by 0.7% in 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 buying an additional 111 shares in the last quarter. GAMMA Investing LLC raised its position in shares of PennyMac Financial Services by 97.3% in the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock valued at $38,000 after buying an additional 142 shares in the last quarter. Sei Investments Co. lifted its holdings in shares of PennyMac Financial Services by 0.7% during the 3rd quarter. Sei Investments Co. now owns 22,145 shares of the real estate investment trust's stock worth $2,743,000 after acquiring an additional 146 shares during the period. Finally, CANADA LIFE ASSURANCE Co boosted its position in shares of PennyMac Financial Services by 1.0% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 16,236 shares of the real estate investment trust's stock worth $2,026,000 after acquiring an additional 163 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors.

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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