PennyMac Financial Services (NYSE:PFSI) Price Target Raised to $135.00

Key Points

• Analysts at Wells Fargo & Company raised the price target for PennyMac Financial Services from $115.00 to $135.00, indicating a potential upside of 4.26% from its previous close.
• PennyMac recently reported earnings of $3.37 per share, surpassing analysts' estimates of $2.98, and sees a significant revenue increase of 53.7% year-over-year.
• Current consensus ratings show four Buy ratings and four Hold ratings for PennyMac, with an average price target of $134.00.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price target boosted by analysts at Wells Fargo & Company from $115.00 to $135.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the real estate investment trust's stock. Wells Fargo & Company's price objective would indicate a potential upside of 4.26% from the stock's previous close.

PFSI has been the topic of a number of other research reports. Weiss Ratings reiterated a "hold (c)" rating on shares of PennyMac Financial Services in a research note on Wednesday, October 8th. Keefe, Bruyette & Woods lowered PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $129.00 target price on the stock. in a research note on Tuesday, October 7th. Barclays increased their target price on PennyMac Financial Services from $119.00 to $136.00 and gave the stock an "overweight" rating in a research note on Monday, October 6th. Zacks Research raised PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a research report on Monday, October 6th. Finally, Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Monday, September 29th. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $134.00.

PennyMac Financial Services Trading Up 7.1%

NYSE:PFSI traded up $8.57 during midday trading on Wednesday, hitting $129.48. 106,850 shares of the company traded hands, compared to its average volume of 380,458. The firm's fifty day moving average is $117.19 and its 200-day moving average is $104.18. PennyMac Financial Services has a 12-month low of $85.74 and a 12-month high of $134.56. The firm has a market capitalization of $6.70 billion, a P/E ratio of 17.96 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 (NYSE:PFSI - Get Free Report) last released its quarterly earnings results on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, beating the consensus estimate of $2.98 by $0.39. PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The company had revenue of $632.90 million for the quarter, compared to analyst estimates of $573.46 million. During the same quarter in the prior year, the firm posted $1.30 EPS. PennyMac Financial Services's quarterly revenue was up 53.7% compared to the same quarter last year. On average, 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 news, Director Joseph F. Mazzella sold 7,107 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total value of $768,693.12. Following the completion of the transaction, the director directly owned 86,050 shares in the company, valued at $9,307,168. This trade represents a 7.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Daniel Stanley Perotti sold 5,850 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $108.20, for a total value of $632,970.00. Following the completion of the transaction, the chief financial officer owned 228,175 shares of the company's stock, valued at approximately $24,688,535. The trade was a 2.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 35,632 shares of company stock valued at $3,998,816. 15.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of PFSI. EverSource Wealth Advisors LLC purchased a new position in PennyMac Financial Services during the second quarter valued at approximately $26,000. CWM LLC raised its position in PennyMac Financial Services by 71.5% during the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock valued at $27,000 after acquiring an additional 113 shares in the last quarter. Strs Ohio purchased a new position in PennyMac Financial Services during the first quarter valued at approximately $30,000. Bayforest Capital Ltd acquired a new stake in PennyMac Financial Services in the second quarter valued at approximately $62,000. Finally, Harbor Capital Advisors Inc. grew its holdings in PennyMac Financial Services by 26.3% in the third 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 period. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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.

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