PennyMac Financial Services (NYSE:PFSI) Price Target Lowered to $116.00 at Barclays

Key Points

• Barclays lowered its price target on PennyMac from $136 to $116 but maintained an overweight rating, with the new target implying roughly a 28.8% upside from the prior close.
• PennyMac posted a notable earnings miss—EPS $1.97 vs. $3.23 expected and revenue $538.0M vs. $639.8M—and the stock trades around $90, near its 52‑week low and below the consensus price target (~$134.71).
• Insider selling has increased recently: CEO David Spector sold 12,436 shares and insiders sold about 51,280 shares (~$5.15M) over the past three months, though insiders still own 15.8% of the company.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its target price reduced by research analysts at Barclays from $136.00 to $116.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has an "overweight" rating on the real estate investment trust's stock. Barclays's price objective suggests a potential upside of 28.76% from the company's previous close.

PFSI has been the subject of a number of other research reports. Keefe, Bruyette & Woods upgraded PennyMac Financial Services from a "market perform" rating to an "outperform" rating and set a $115.00 target price for the company in a report on Monday, March 16th. BTIG Research reissued a "buy" rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Wells Fargo & Company reduced their target price on shares of PennyMac Financial Services from $150.00 to $135.00 and set an "overweight" rating on the stock in a report on Friday, January 30th. Zacks Research downgraded PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a report on Tuesday, February 3rd. Finally, Wall Street Zen downgraded PennyMac Financial Services from a "buy" rating to a "hold" rating in a research report on Sunday, January 18th. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $134.71.

PennyMac Financial Services Trading Down 0.0%

Shares of PFSI traded down $0.01 during mid-day trading on Monday, reaching $90.09. The company had a trading volume of 58,358 shares, compared to its average volume of 851,849. PennyMac Financial Services has a fifty-two week low of $82.65 and a fifty-two week high of $160.36. The firm has a fifty day simple moving average of $94.89 and a 200-day simple moving average of $117.95. The stock has a market cap of $4.70 billion, a price-to-earnings ratio of 9.67, a price-to-earnings-growth ratio of 0.52 and a beta of 1.52. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing the consensus estimate of $3.23 by ($1.26). The firm had revenue of $538.01 million during the quarter, compared to analysts' expectations 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 quarterly revenue was up 14.4% compared to the same quarter last year. During the same period last year, the business posted $1.95 earnings per share. On average, sell-side analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO David Spector sold 12,436 shares of the firm's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $86.39, for a total transaction of $1,074,346.04. Following the completion of the sale, the chief executive officer owned 529,401 shares of the company's stock, valued at approximately $45,734,952.39. This trade represents a 2.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Derek Stark sold 1,903 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $91.50, for a total transaction of $174,124.50. Following the completion of the sale, the insider directly owned 22,477 shares in the company, valued at $2,056,645.50. This represents a 7.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 51,280 shares of company stock worth $5,154,453. Company insiders own 15.80% of the company's stock.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased its holdings in PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock valued at $30,000 after buying an additional 228 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of PennyMac Financial Services in the 4th quarter valued at approximately $31,000. EverSource Wealth Advisors LLC acquired a new stake in shares of PennyMac Financial Services during the 2nd quarter valued at approximately $26,000. GAMMA Investing LLC lifted its stake 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 worth $38,000 after purchasing an additional 142 shares during the last quarter. Finally, Strs Ohio acquired a new position in PennyMac Financial Services in the first quarter worth $30,000. 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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